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Tinexta

MI: TNXT

€1156.6m market cap

€24.5 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 FY20 results were broadly in line with management’s prior guidance and demonstrated margin leverage despite it being a more challenging year due to COVID-19, and a significant improvement in free cash flow generation and net debt. The acquisitions of the Cyber Security businesses have enhanced the group’s growth revenue and EBITDA growth profile, albeit diluting the group’s EBITDA margin. Our DCF-based approach suggests a valuation of €27 per share.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2019A 258.7 71.3 53.5 80.3 30.5 21.0
2020A 269.0 77.9 58.6 86.7 28.3 13.8
2021E 370.2 96.2 73.5 110.6 22.2 18.4
2022E 411.7 110.6 86.9 130.8 18.7 14.6
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 13/04/2021
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Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 182.3
Forecast gearing ratio (%) 90
Price performance
%
1m
3m
12m
Actual 12.6 23.0 148.2
Relative* 10.1 13.5 77.6
52-week high/low €24.5/€10.0
*% relative to local index
Key management
Pier Andrea Chevallard CEO
Oddone Pozzi CFO