Edison Investment Research - Tinexta (TNXT) Tinexta - Management anticipates stronger growth in FY23

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Edison Investment Research

Richard Williamson

Tinexta - Management anticipates stronger growth in FY23

Tinexta’s FY22 results demonstrated strong growth but were just shy of our expectations, mainly due to lower growth than expected from the Cyber Security (CS) division. Management’s new guidance suggests greater profit growth in FY23 than was delivered in FY22, before any contributions from recently announced and likely further mergers and acquisitions (M&A) are considered. The growth plan continues to focus on strengthening Tinexta’s position in its reference markets, M&A, internationalisation of the divisions and cross-selling opportunities. We downgrade our FY23 and FY24 EBITDA estimates by 7–8% to reflect the new guidance. Our DCF-based valuation of €29.5/share (€38.7 previously) suggests the company’s share price is attractively valued.

20/03/2023 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 - Management anticipates stronger growth in FY23

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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