Last close As at 05/08/2026
EUR15.00
— 0.00 (0.00%)
Market capitalisation
EUR709m
Research: TMT
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 is expanding internationally. Tinexta has just announced, via M&A, its entry into the complementary market of cybersecurity, which will lead to the creation of its fourth business unit. We estimate that cybersecurity will accelerate Tinexta’s organic revenue growth from 4–5% to more than 8% from FY21, but will be dilutive to the group EBITDA margin initially before improving quickly. There will likely be further M&A to increase geographic coverage, client reach or expand the product offer. Q220 results were much better than expected, as all businesses improved organic revenue growth trends versus Q120.
Tinexta |
Increasing exposure to digital
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Professional services |
Deutsches Eigenkapitalforum 2020
22 October 2020 |
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Business description
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Analysts
Tinexta is a research client of Edison Investment Research Limited |
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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 is expanding internationally. Tinexta has just announced, via M&A, its entry into the complementary market of cybersecurity, which will lead to the creation of its fourth business unit. We estimate that cybersecurity will accelerate Tinexta’s organic revenue growth from 4–5% to more than 8% from FY21, but will be dilutive to the group EBITDA margin initially before improving quickly. There will likely be further M&A to increase geographic coverage, client reach or expand the product offer. Q220 results were much better than expected, as all businesses improved organic revenue growth trends versus Q120.
Digital Trust
This business unit offers solutions that provide surety with respect to the validity of digital identities, and the authenticity and secure storage of electronic documents. It should benefit from the transition to a digital world. The company is leveraging its expertise, given recent regulatory changes, by expanding on an EU-wide basis with a unified legal base, recently announcing the important expansion into Germany via M&A. In H120, organic revenue growth of 6.3% was better than expected.
Innovation & Marketing Services
There are two main businesses: helping SMEs obtain funding and tax credits to help finance research and innovation, and consulting services to help corporates expand outside their home markets. Thematically, the former is expected to drive growth, given domestic and EU-wide funding initiatives to boost the development and competitiveness of economies. In H120, organic revenue declined by 10.5%.
Credit Information & Management
There are two main operating businesses: data services to help banks and SMEs with granting, ongoing assessment and recovery of credit, and providing residential property valuations to banks. The former is a competitive market, although COVID has boosted the loan guarantee advisory business. Real estate valuation business is more stable and Tinexta is market leader. In H120, organic rev declined by 7.6%.
Valuation: DCF of CHF0.38/share
The share price has performed strongly in 2020, resulting in a P/E of 24.1x in FY20e (before inclusion of cybersecurity), as the group was resilient to the COVID-19 downturn and the proposed cybersecurity acquisitions have been well received.
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Edison estimates
Note: *PBT and EPS are normalised. Estimates ex-cybersecurity M&A |
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Research: Consumer
Evolva has undergone a transformation from an R&D-driven enterprise towards a commercial company with a product-based revenue model. It recently received US EPA registration for nootkatone, and H120 witnessed a record order intake driven by Health Ingredients. COVID-19 caused delays at its contract manufacturers and hence only part of these record orders could be realised in H1, although much of these volumes should be shipped in H2. EBITDA was also adversely affected by lower sales in Flavours & Fragrances (F&F), due to the pandemic. The company is seeing early signs of recovery and has reiterated its commitment to cash break-even by FY23.