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Tinexta

MI: TNXT

€536.4m market cap

€11.44 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 provides IT solutions, information and consulting services in niche markets predominantly to corporate clients. It has leading positions in its domestic Italian markets. In aggregate, we believe the company is capable of 6% organic revenue growth through our forecast period while expanding EBITDA margin, cash flow conversion and ROIC. There is likely to be further M&A in order to increase geographic coverage, client reach or expand the product offer. Q219 results confirmed the outlook is positive for its two largest and most profitable divisions, Digital Trust and Innovation & Marketing Services. Management reiterated guidance for FY19, which appears conservative.

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 24.8 N/A
2018A 238.7 66.0 48.6 73.90 15.5 N/A
2019E 257.0 72.4 52.6 77.90 14.7 N/A
2020E 271.4 80.1 58.3 86.33 13.3 N/A
Last updated on 16/09/2019
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 16/09/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 163.7
Forecast gearing ratio (%) 98
Price performance
%
1m
3m
12m
Actual (6.8) (19.3) 89.1
Relative* (13.7) (24.0) 83.1
52-week high/low €14.4/€6.0
*% relative to local index
Key management
Pier Andrea Chevallard CEO