TXT e-solutions


€80.6m market cap

€6.2 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 exceptional growth in 2019, with organic growth of 24% and normalised EBIT growth of 90%. Recent acquisitions have put the Fintech division in a stronger position and the company continues to search for new acquisition targets. Measures to contain coronavirus are likely to have an impact on the business, particularly as it is exposed to the airline industry (6% of revenues), but a net cash position of €41m provides more than adequate liquidity for the company to manage its way through the crisis.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 40.0 4.1 1.5 10.3 60.2 35.6
2019A 59.1 7.0 7.4 44.4 14.0 N/A
2020E 62.9 5.6 3.4 18.0 34.4 20.1
2021E 67.9 7.5 5.3 29.8 20.8 11.5
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 26/03/2020
Share price graph
Balance sheet
Forecast net cash (€m) 43.8
Forecast gearing ratio (%) N/A
Price performance
Actual (28) (36.5) (31.3)
Relative* (2.8) (12.3) (15.6)
52-week high/low €10.7/€4.6
*% relative to local index
Key management
Alvise Braga Illa Chairman
Eugenio Forcinito CFO
Enrico Magni Group CEO

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