€562.7m market cap
€11.92 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. In its fastest growing divisions, Digital Trust and Innovation & Marketing Services, it is the domestic market leader and either expanding internationally or seeking opportunities. In aggregate, we believe the group is capable of c 6% organic revenue growth while expanding its EBITDA margin, cash flow conversion and ROIC. There is likely to be further M&A to increase geographic coverage, client reach or expand the product offer. We believe that management guidance for FY19 is 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 | 25.9 | N/A |
| 2018A | 238.7 | 66.0 | 48.6 | 73.90 | 16.1 | N/A |
| 2019E | 257.0 | 72.4 | 52.6 | 77.90 | 15.3 | N/A |
| 2020E | 271.4 | 80.1 | 58.3 | 86.33 | 13.8 | N/A |
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 15/11/2019
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Share price graph
Balance sheet |
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| Forecast net debt (€m) | 163.7 |
| Forecast gearing ratio (%) | 98 |
Price performance
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Key management |
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| Pier Andrea Chevallard | CEO |
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