Piteco (PITE)

Business description

Piteco is Italy’s leading company in the design, development and implementation of software for treasury, finance and financial planning management.

Stock data

Market cap.€88.1m
Last close€4.86
High / Low (52 weeks)€5.5 / €4.8
Stock market listingAIM Italia
Forecast net debt (€m)2.7
Forecast gearing ratio (%)8
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual(2.4)(3.8)(2.9)
Relative *(8.7)(3.5)(19.1)

* % Relative to local index

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Company news

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2016A 14.1 5.6 5.0 24.4 19.9 15.9
2017A 17.0 6.5 5.6 30.3 16.0 15.5
2018E 20.1 8.0 7.2 36.0 13.5 10.8
2019E 21.8 9.0 8.3 39.3 12.4 9.6

Last updated on 23/03/2018

Investment summary

Piteco traded broadly in line with management objectives, with 30 new contracts signed in FY17, up from 26 in FY16. Nevertheless, revenue and EBITDA came in below our forecasts, as the group lacked large-size projects during the year, while Juniper suffered on translation from continued dollar weakness. Recurring revenues grew 5% organically and 46% including Juniper and now represent 65% of the total. We cut revenues by 5% and EPS by 7-8% in FY18 and FY19 for lower services and the weak dollar. With Juniper trading in line with targets and management expecting the treasury business to return to its growth trend in FY18, we believe the shares are attractively priced on 12x our FY19e EPS.

Last updated on 06/04/2018

Industry outlook

Piteco is the leading player in the Italian treasury management systems (TMS) market. TMS are software solutions used by corporate treasuries and finance departments to manage transactions and support their decision-making. The software and ICT solutions market in Italy is valued at €6.3bn (Assinform 2016). A small slice of this (Piteco suggests c 5%) represents the market for treasury and financial planning software. IDC estimated the worldwide revenue for the risk and treasury applications market was $2.1bn in 2013, up 4.3% y-o-y.

Last updated on 06/04/2018

Key management

Marco Podini, Chairman
Paolo Virenti, CEO
Riccardo Veneziani, CFO
Andrea Guillermaz, Sales Director

Company address

Via Mercalli
16-20122
Milano
Italy
+39 02 3660931
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