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Tinexta

MI: TNXT

€550.5m market cap

€11.74 last close

Tinexta has three business divisions: Digital Trust – solutions to improve digital security; Credit Information & Management – information services to help manage corporate credit; and Innovation & Marketing Services – consulting services to help clients develop and/or grow their businesses.

Investment summary

Tinexta’s interim results confirmed the outlook is positive for its two largest and most profitable divisions, Digital Trust and Innovation & Marketing Services. Overall revenue and profit growth for the group was slower in Q2 than in Q1, mainly due to one-off costs and a decline in Credit Information & Management. We maintain our PBT forecasts for FY19 and increase our FY20 forecast by 1%. Our DCF-based valuation increases to €14.6 per share (from €14.2), which offers 17% potential upside from the current share price.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 174.8 40.6 30.5 46.04 25.5 N/A
2018A 238.7 66.0 48.6 73.90 15.9 N/A
2019E 257.0 72.4 52.6 77.90 15.1 N/A
2020E 271.4 80.1 58.3 86.33 13.6 N/A
Last updated on 20/08/2019
Industry outlook

Tinexta is exposed to favourable growth trends including the transition to a digital world and the requirement for enhanced online security. Starting from a purely domestic Italian focus, the company is exploiting these trends internationally. In particular, given recent regulatory changes, in Digital Trust the group is leveraging its Italian expertise to expand on an EU-wide basis with a unified legal base across the region. At the same time, Tinexta is likely to make acquisitions in Italy and Europe that will further expand its addressable markets, and seek cross-selling opportunities between the business units.

Last updated on 20/08/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 163.7
Forecast gearing ratio (%) 98
Price performance
%
1m
3m
12m
Actual (7.1) (2.2) 106.0
Relative* (2.1) (1.8) 108.9
52-week high/low €14.4/€5.6
*% relative to local index
Key management
Pier Andrea Chevallard CEO