Tinexta

Euronext STAR Milan: TNXT

Market Cap€1483.3m

Last Close €31.42

Tinexta has four divisions: Digital Trust, solutions to increase trust in digital transactions; Credit Information & Management, services to manage credit; Innovation & Marketing Services, consulting services to help clients develop their businesses; and Cybersecurity.

Investment summary

Tinexta has stated it has ‘no interest in the deal’ that was subject to press speculation on 4 January 2022, namely the claimed negotiations to combine with Prelios, a private-equity owned company. Tinexta’s recent M&A strategy has focused on investing in new industries, with an expected strong growth profile (such as the acquisitions of Cyber Security and CertEurope in France), or the formation of new ventures (with no new capital investment by Tinexta) with industry participants that management expects will improve the growth outlook for its existing business units (such as the new venture with Intesa Sanpaolo and the investment by Bregal Milestone in InfoCert). Tinexta will publish its new three-year economic and financial plan for FY22–24 on 28 February.

Y/E Dec	Revenue (€m)	EBITDA (€m)	PBT (€m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2019A	258.7	71.3	53.5	80.3	39.1	26.8
2020A	269.0	77.9	58.6	85.2	36.9	18.1
2021E	373.7	91.8	72.6	111.7	28.1	22.8
2022E	438.6	117.6	93.5	139.5	22.5	16.7

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 DT 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 21/01/2022