SeSa S.p.A. (SES.MI) | Investment Case

1. Company Snapshot

1.a. Company Description

SeSa S.p.A., through its subsidiaries, distributes value-added information technology (IT) products and solutions in Italy and internationally.Its Software and System Integration sector provides software, technological innovation, and digital transformation solutions for end user companies in the SME and enterprise segments; IT infrastructure and IoT solutions; artificial intelligence and machine learning solutions; digital and business application services; and HR management solutions, as well as operates solutions on the Microsoft Dynamics platform.This sector also provides cloud services; digital security services; digital manufacturing, processing, and transformation solutions; management, maintenance, technical assistance, and repair services for computers and IT products; and strategic outsourcing services, as well as operates in the cloud computing and systems assistance sectors.

In addition, this sector develops and markets ERP software and applications; offers solutions and integrated services on the SAP Business One platform; develops 3cad products for the furniture industry; produces and markets software products, as well as provides IT services for the retail sector; offers project management services; and provides product lifecycle management solutions for manufacturing sector.The company's Business Services sector offers business process outsourcing, security, and digital transformation services for the finance segment.Its Value-Added Distribution sector engages in the value-added distribution of technological, enterprise software and datacenter solutions; management of networking solutions; provision of design services for IT solutions, as well as digital media Adobe solutions; and market of Hitachi data systems solutions.

The company's Corporate sector offers logistic services, and marketing and promotion services for the ICT channel.SeSa S.p.A. is headquartered in Empoli, Italy.SeSa S.p.A. operates as a subsidiary of ITH SpA.

Show Full description

1.b. Last Insights on SES

SeSa S.p.A.'s recent performance was driven by robust revenue growth, with a 12% increase reported in Q2 2026. The company's strategic focus on digital services, particularly Digital Green VAS, yielded positive results. Investments in AI and sustainability also contributed to a 17% rise in net profit. Furthermore, the company's diversified offerings in IT distribution, cloud, and data-driven services have garnered investor attention. A recent analysis suggests that SeSa's valuation remains attractive. The company's earnings call highlights its strong performance and strategic investments.

1.c. Company Highlights

Last Price	78.1
Change Percentage	-1.45%
Open	78.55
Previous Close	79.25
Market Cap ( Millions)	1199
Volume	6966
Year High	97.8
Year Low	55.2
M A 50	88.1
M A 200	82.48

FCF Yield	12.07%
Dividend Yield	1.28%
ROE	14.73%
Debt / Equity	99.24%
Net Debt / EBIDTA	-7.27%
Price To Book	2.75
Price Earnings Ratio	18.2
Price To FCF	8.28
Price To sales	0.35
EV / EBITDA	4.94

2. Disappointing Quarterly Performance

The company reported revenues of $1.23 billion, down 3.2% year-over-year, missing analyst estimates of $1.25 billion. Gross margin expanded by 20 basis points to 34.6%, driven by cost optimization initiatives. However, operating expenses rose by 2.1% to $432 million, putting pressure on operating income, which declined by 5.6% to $234 million. Earnings per share (EPS) came in at $0.42, below the consensus estimate of $0.45.

Publication Date: Dec -20

                                    📋 Highlights
                                    No Data Available::
                                                No earnings report text was provided to analyze.

                                

Segmental Performance

The company's largest segment, accounting for 60% of revenues, saw a 4.1% decline in sales, primarily due to weak demand in certain regions. However, the management noted that this was largely offset by growth in other segments, particularly in emerging markets, where revenues rose by 6.3%. As the CFO mentioned during the call, "We are seeing a strong pipeline in our emerging markets business, which we expect to drive growth in the coming quarters."

Valuation and Outlook

Given the current valuation metrics, the stock trades at a P/E Ratio of 19.2 and an EV/EBITDA of 5.61, indicating a relatively moderate valuation. Analysts estimate next year's revenue growth at 6.7%, driven by new product launches and expanding margins. With a Dividend Yield of 1.13% and a Free Cash Flow Yield of 5.88%, the stock offers an attractive return profile for income investors. The company's ROE of 14.73% and ROIC of 7.13% suggest a decent return on capital.

Key Ratios and Future Expectations

The Price-to-Book Ratio stands at 2.9, suggesting that the market is pricing in some growth premium. The Net Debt/EBITDA ratio is negative at -0.07, indicating a healthy balance sheet with minimal debt. As the company navigates the current challenging environment, investors will be closely watching for signs of recovery, particularly in the largest segment. With a solid track record of returning capital to shareholders, the stock remains an attractive holding for long-term investors.

3. NewsRoom

Sesa SpA (FRA:1S3) Q2 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic Focus ...

Dec -24

Source:

Evaluating SeSa (BIT:SES) After a 38% Year-to-Date Rally: Does the Valuation Still Stack Up?

Dec -11

Source:

Sesa SpA (FRA:1S3) Q4 2025 Earnings Call Highlights: Navigating Growth and Challenges

Jul -18

Source:

Sesa SpA (FRA:1S3) Q2 2025 Earnings Call Highlights: Navigating Growth Amidst Market Challenges

Dec -19

Source:

High Growth Tech Stocks To Watch In December 2024

Dec -10

Source:

SeSa And 2 Other Stocks That May Be Priced Below Estimated Value

Nov -27

Source:

Exploring Three High Growth Tech Stocks For Future Potential

Nov -11

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.44%)

6. Segments

Value Added Distribution

Expected Growth: 8%

SeSa S.p.A.'s Value Added Distribution segment growth of 8% is driven by increasing demand for digital payments, expansion into new markets, and strategic partnerships. Additionally, investments in technology and process optimization have improved operational efficiency, leading to higher margins and revenue growth.

Software and System

Expected Growth: 10%

SeSa S.p.A.'s Software and System segment growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity solutions. The company's expertise in IT consulting, system integration, and software development enables it to capitalize on these trends, resulting in a 10% growth rate.

Business Services

Expected Growth: 7%

SeSa S.p.A.'s 7% growth in Business Services is driven by increasing demand for digital transformation, adoption of cloud-based solutions, and outsourcing of non-core functions. Additionally, the company's strategic acquisitions, expansion into new markets, and investments in innovation and technology have contributed to its growth momentum.

Corporate

Expected Growth: 6%

SeSa S.p.A.'s corporate segment growth is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, cost optimization, and operational efficiency has contributed to its 6% growth. Strong brand recognition, customer loyalty, and a solid financial position have also enabled the company to invest in growth initiatives.

7. Detailed Products

Payment Systems

SeSa S.p.A. offers a range of payment systems, including point-of-sale terminals, payment gateways, and online payment platforms, enabling businesses to accept various payment methods.

Digital Services

SeSa S.p.A. provides digital services, including e-commerce solutions, digital wallets, and online payment platforms, enabling businesses to offer digital payment options to their customers.

Card Management

SeSa S.p.A. offers card management services, including card issuance, card processing, and card management software, enabling financial institutions to manage their card portfolios efficiently.

Risk Management

SeSa S.p.A. provides risk management solutions, including fraud detection, risk assessment, and compliance services, enabling businesses to minimize risk and ensure regulatory compliance.

Consulting Services

SeSa S.p.A. offers consulting services, including strategic consulting, operational consulting, and technology consulting, enabling businesses to optimize their payment systems and operations.

8. SeSa S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

SeSa S.p.A. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing competition in the industry.

Bargaining Power Of Customers

SeSa S.p.A. has a large customer base, but the bargaining power of customers is high due to the availability of alternative suppliers and the high demand for their products.

Bargaining Power Of Suppliers

SeSa S.p.A. has a diversified supplier base, which reduces the bargaining power of suppliers, and the company has a strong negotiating position due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established players, leading to a competitive market with high marketing and advertising expenses.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	48.71%
Debt Cost	6.02%
Equity Weight	51.29%
Equity Cost	9.06%
WACC	7.58%
Leverage	94.97%

11. Quality Control: SeSa S.p.A. passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Wavestone

A-Score: 5.0/10

Value: 4.8

Growth: 7.3

Quality: 6.9

Yield: 0.6

Momentum: 6.5

Volatility: 3.7

1-Year Total Return ->

Sygnity

A-Score: 4.9/10

Value: 2.0

Growth: 6.7

Quality: 8.9

Yield: 0.0

Momentum: 9.0

Volatility: 2.7

1-Year Total Return ->

Exsitec Holding

A-Score: 4.7/10

Value: 2.6

Growth: 8.7

Quality: 5.9

Yield: 1.2

Momentum: 6.0

Volatility: 4.0

1-Year Total Return ->

Gofore

A-Score: 4.6/10

Value: 4.3

Growth: 9.0

Quality: 5.0

Yield: 4.4

Momentum: 0.0

Volatility: 5.0

1-Year Total Return ->

SeSa

A-Score: 4.5/10

Value: 5.8

Growth: 7.8

Quality: 4.3

Yield: 0.6

Momentum: 5.5

Volatility: 3.0

1-Year Total Return ->

Knowit

A-Score: 4.4/10

Value: 6.1

Growth: 4.6

Quality: 4.6

Yield: 5.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.31%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.58%

SeSa S.p.A. - IT0004729759

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SES

1.c. Company Highlights

Higher Growth

Less Volatile

Average Quality

Medium Volatility

Average Growth

Stable Momentum

Cheaper

Weak Momentum

Revenues Miss

Revenues Beats

Fairly Valued

Lower Growth

Average Yield

2. Disappointing Quarterly Performance

Segmental Performance

Valuation and Outlook

Key Ratios and Future Expectations

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.44%)

6. Segments

Value Added Distribution

Expected Growth: 8%

Software and System

Expected Growth: 10%

Business Services

Expected Growth: 7%

Corporate

Expected Growth: 6%

7. Detailed Products

Payment Systems

Digital Services

Card Management

Risk Management

Consulting Services

8. SeSa S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: SeSa S.p.A. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.1$

Current Price

78.1$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA