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1. Company Snapshot

1.a. Company Description

Seco S.p.A. develops embedded micro-computers, integrated systems, and IoT solutions.The company offers modules, single board computers, boxed solutions, HMI solutions, carrier boards, starter kits, and accessories, as well as custom hardware and software solutions, and system integration.Its products are used in various applications, including transportation, industrial automation, medical, vending, digital signage, building automation/domotics, aerospace, defense, securities/surveillance, utilities, and devices.


The company was founded in 1979 and is headquartered in Arezzo, Italy.

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1.b. Last Insights on IOT

Seco S.p.A.'s recent strength is driven by its strong fundamentals and innovative capabilities, positioning it to withstand broader market volatility. The company's ability to demonstrate resilience amid economic shifts, such as fluctuating consumer confidence and economic indicators, makes it an attractive consideration for investors. With the Nasdaq Composite leading gains in recent weeks, Seco's high-growth potential is likely to be driven by its strong innovation capabilities, aligning with the current market environment.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.93%)

6. Segments

Seco

Expected Growth: 12%

Seco's 12% growth driven by increasing demand for cutting tools in automotive and aerospace industries, expansion in emerging markets, and strategic acquisitions. Additionally, investments in digitalization and innovation, such as additive manufacturing, are enhancing product offerings and driving growth.

Seco Northern Europe

Expected Growth: 11%

Seco Northern Europe's 11% growth is driven by increasing demand for cutting tools in the region's thriving automotive and aerospace industries, coupled with the company's strategic expansion into e-commerce and investments in digitalization, enabling efficient production and supply chain management.

Eliminations

Expected Growth: 0%

No eliminations from Seco S.p.A. indicates a stable business structure, with no divestitures or discontinuations. This suggests a focus on core operations, efficient resource allocation, and a commitment to long-term growth. The absence of eliminations also implies a lack of underperforming assets or non-core businesses, allowing the company to concentrate on its profitable segments.

Seco Mind United States

Expected Growth: 14%

Seco Mind United States, a subsidiary of Seco S.p.A., achieves 14% growth driven by increasing demand for digital manufacturing solutions, expansion into new industries, and strategic partnerships. Additionally, investments in research and development, coupled with a strong sales and marketing strategy, contribute to the segment's growth.

7. Detailed Products

Cutting Tools

Seco's cutting tools are designed for high-performance machining, offering a range of inserts, holders, and tooling systems for turning, milling, and drilling operations.

Tooling Systems

Seco's tooling systems provide a comprehensive range of solutions for turning, milling, and drilling operations, including tool holders, adapters, and accessories.

Inserts and Grades

Seco's inserts and grades offer a wide range of cutting tool materials and geometries for various machining applications, including turning, milling, and drilling.

Custom Tooling Solutions

Seco's custom tooling solutions provide tailored tooling systems and inserts for specific machining applications, including specialized cutting tools and holders.

Digital Solutions

Seco's digital solutions provide data-driven insights and optimization tools for machining processes, including tool monitoring, predictive maintenance, and process optimization.

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

Forces Ranking

Threat Of Substitutes

Seco S.p.A. operates in a niche market with specialized products, reducing the threat of substitutes. However, the company's dependence on a few key customers increases the risk of substitutes.

Bargaining Power Of Customers

Seco S.p.A.'s customers are large multinational companies with significant bargaining power. This puts pressure on Seco to maintain high-quality products and competitive pricing.

Bargaining Power Of Suppliers

Seco S.p.A. has a diversified supplier base, reducing its dependence on individual suppliers. This gives the company more bargaining power in negotiating prices and terms.

Threat Of New Entrants

The specialized nature of Seco S.p.A.'s products and the high barriers to entry in the industry make it difficult for new entrants to compete effectively.

Intensity Of Rivalry

Seco S.p.A. operates in a competitive market, but the company's focus on innovation and quality helps it maintain a strong market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.12%
Debt Cost 8.72%
Equity Weight 68.88%
Equity Cost 9.01%
WACC 8.92%
Leverage 45.18%

11. Quality Control: Seco S.p.A. passed 5 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

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Navitas Semi

A-Score: 4.3/10

Value: 6.2

Growth: 6.4

Quality: 3.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Seco

A-Score: 3.9/10

Value: 4.3

Growth: 4.9

Quality: 2.8

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Alphawave IP

A-Score: 3.6/10

Value: 4.6

Growth: 5.1

Quality: 1.6

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
SEALSQ

A-Score: 3.5/10

Value: 6.2

Growth: 1.3

Quality: 3.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Valens Semi

A-Score: 2.9/10

Value: 7.8

Growth: 4.3

Quality: 4.3

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Magnachip Semiconductor

A-Score: 2.7/10

Value: 9.8

Growth: 1.2

Quality: 2.9

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.83$

Current Price

2.83$

Potential

-0.00%

Expected Cash-Flows