TXT e-solutions


€120.4m market cap

€9.26 last close

TXT e-solutions provides IT, consulting and R&D services to aerospace, aviation, automotive, banking and finance customers.

Investment summary

TXT e-solutions reported a strong performance in Q319, with double-digit organic revenue growth in both divisions boosted by contributions from Assioma and TXT Risk. For 9M19, normalised operating profits doubled year-on-year with margin expansion of 230bp. We have raised our FY19 and FY20 EPS forecasts to reflect Q3 performance. Recent fintech acquisitions have been integrated and are helping to accelerate the growth and profitability of the Banking & Finance division. With a significant amount of cash on the balance sheet, we expect TXT to make further targeted acquisitions.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 35.9 3.5 3.0 18.6 49.8 910.4
2018A 40.0 4.1 1.5 10.3 89.9 53.1
2019E 59.2 6.6 7.1 41.5 22.3 31.9
2020E 65.5 8.0 6.6 38.0 24.4 15.6
Industry outlook

TXT Next is a beneficiary of the trend to outsource elements of IT and engineering, which gives the customer greater flexibility on cost and better access to specialist skills. Its main focus is on the aerospace and aviation market, where the rapid pace of innovation, combined with increasing regulation, drives growth in R&D. It also serves the Italian banking market, where the emergence of fintech companies is driving innovation and regulation is increasing the need for software quality assurance.

Last updated on 18/02/2020
Share price graph
Balance sheet
Forecast net cash (€m) 50.1
Forecast gearing ratio (%) N/A
Price performance
Actual (1.4) (5.1) (5.9)
Relative* (5.3) (11.6) (23.3)
52-week high/low €10.7/€8.1
*% relative to local index
Key management
Alvise Braga Illa Chairman
Eugenio Forcinito CFO
Enrico Magni Group CEO

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