Edison Investment Research - Tinexta (TNXT) Tinexta - Guiding to mid double-digit profit growth to FY24

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Edison Investment Research

Richard Williamson

Tinexta - Guiding to mid double-digit profit growth to FY24

Tinexta’s FY21 headline results for revenue and adjusted EBITDA were in line with our expectations. The new three-year business plan is based on continued organic growth due to leadership in its reference markets (which are mainly experiencing structural growth), further domestic and international M&A and improved operating and cost efficiencies. Management is guiding for a mid-double-digit CAGR for adjusted EBITDA to FY24. Ahead of the publication of full financial results, our provisional new estimates reflect a modest increase to FY22 but a reduction in FY23. The latter reflects the new guidance, recent M&A (Evalue) and more conservative scheduling of the anticipated benefits from the Forvalue acquisition, completed in FY21. The recent share price weakness has seen near-term multiples return towards more attractive levels.

07/03/2022 1 EN

Underlying

Tinexta

Tinexta SpA, formerly Tecnoinvestimenti SpA, is an Italy-based holding company primarily engaged in the software and Internet services industry. Through its subsidiaries it operates three segments: Digital Trust, Credit Information and Managment, and Innovation and Marketing Services. Digital Trust offers solutions for the digital identity and the dematerialisation of processes with products and services, such as certified electronic mail, electronic archiving, digital signature, electronic invoicing, and solutions for the secure and simplified transmission of legal and financial documents. Credit Information and Managment provides services and products to assess the credit of businesses and individuals, guarantee expected cash flows, and minimise insolvency issues and late payments. Innovation and Marketing Services offers a consultancy platform for enterprises to support them in phases of manufacturing growth and expansion of commercial activites, including abroad.

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IT0005037210 Italy

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Richard Williamson

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Tinexta - Guiding to mid double-digit profit growth to FY24

Tinexta - Weak Q324 but valuation appears too pessimistic

Tinexta - Growth affected by temporary issues

Tinexta - Typical seasonality in Q124

Games Workshop Group - A notable acceleration in Q225

Altron - Further margin expansion in H125

Sayona Mining - Catching up with majors

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