Piteco

MI: PITE

€119.2m market cap

€6.55 last close

Piteco is Italy’s leading company in the design, development and implementation of software for treasury, finance and financial planning management.

Investment summary

Piteco generated solid organic revenue and EBITDA growth in H1 (+7/+8%) and benefitted strongly from recent acquisitions. Our forecasts reflect rather stable organic growth for the corporate treasury core business (Piteco Spa) with an acceleration, already from H219, for recently acquired Myrios (finance and risk management solutions), mainly due to recent commercial success with both corporates and bank clients. We expect robust revenue growth (8% CAGR 2019–21e) for the group to translate into solid earnings progression (we forecast normalised EPS CAGR of 10%). Further acquisitions could strengthen the growth outlook. Based on our FY20 forecasts, we estimate balance sheet headroom of at least €25–30m. Piteco continues to trade at a discount to Italian and international software peers.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 17.0 6.5 5.6 30.3 21.6 20.9
2018A 20.2 8.3 6.1 31.5 20.8 16.3
2019E 24.9 10.6 8.0 38.3 17.1 10.9
2020E 27.0 11.7 9.1 41.5 15.8 10.2
Industry outlook

Piteco is the leading player in the Italian treasury management systems (TMS) market. TMS are software solutions used by corporate treasuries and finance departments to manage transactions and support decision-making. The software and ICT solutions market in Italy is valued at €6.3bn (Assinform 2016). A small slice of this (Piteco suggests c 5%) represents the treasury and financial planning software market. IDC forecasts the worldwide treasury and risk management applications market to grow by 4.9% to reach $2.7bn in 2022.

Last updated on 15/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 21.4
Forecast gearing ratio (%) 63
Price performance
%
1m
3m
12m
Actual 20.2 32.1 56.0
Relative* 13.9 12.5 26.3
52-week high/low €6.8/€3.7
*% relative to local index
Key management
Marco Podini Chairman
Paolo Virenti CEO
Riccardo Veneziani CFO
Andrea Guillermaz Sales Director