Piteco

MI: PITE

€96.1m market cap

€5.3 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’s traditional corporate treasury business returned to growth in FY18 after a flat FY17, with growth accelerating in H2 and momentum continuing in FY19. Juniper Payments, the group’s US payments software business, recorded solid FY18 results while Myrios, acquired late in the 2018, made an impressive initial contribution. In February, Myrios Switzerland was established to target European corporates with the group’s software solutions. Given Piteco’s attractive growth profile and strong margins, we believe the shares look attractive on c 11x our FY20e earnings.

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 17.5 16.9
2018A 20.2 8.3 7.5 38.8 13.7 13.3
2019E 25.0 10.7 9.5 45.5 11.6 8.8
2020E 27.3 11.7 10.6 49.7 10.7 8.0
Last updated on 22/05/2019
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 their 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 market for treasury and financial planning software. IDC forecasts the worldwide treasury and risk management applications market to grow by 4.9% to reach $2.7bn in 2022.

Last updated on 22/05/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 20.4
Forecast gearing ratio (%) 56
Price performance
%
1m
3m
12m
Actual (2.8) 21.0 11.8
Relative* 3.8 19.8 26.4
52-week high/low €5.5/€3.6
*% relative to local index
Key management
Marco Podini Chairman
Paolo Virenti CEO
Riccardo Veneziani CFO
Andrea Guillermaz Sales Director