Franchetti S.p.A.
On 27 September 2022 Franchetti S.p.A. announces that it has received from Borsa Italiana the order for the admission of the Company’s Ordinary Shares and Warrants on “Euronext Growth Milan”, a multilateral negotiations system organized and managed by Borsa Italiana. Negotiations began on 29 September 2022.
The total equivalent of the resources collected through the placement is equal to Euro 2,499,000.
The enterprise Franchetti S.p.A. is the head of the Franchetti Group, a pioneer in the field of management, diagnostics, and predictive maintenance of infrastructures, bridges, and viaducts in particular. Founded in 2013 in Arzignano (VI) with subsidiaries in Brazil and Canada, and activities in the USA, India, and Singapore, Franchetti is an innovative SME that has operated on over 38,000 equivalent motorway and railway bridges around the world.
Ultima Ricerca Franchetti S.p.A.
UPDATE| At the end of FY24A, the value of production amounted to € 8.99 million, marking an increase both compared to the result recorded in FY23A (+28.0%), which was € 7.02 million, and relative to our previous estimate of € 8.50 million. Despite an increase in external service costs and personnel expenses during the year, EBITDA still posted a year-over-year growth of 34.0% compared to € 2.54 million in FY23A, reaching € 3.40 million—a result that also exceeded our estimate of € 2.75 million. As a result, the EBITDA margin showed a further improvement, rising from 36.1% in FY23A to 37.8% in FY24A, confirming the company’s ongoing operational efficiency and its ability to sustain the expansion of its cost structure. EBIT, after D&A of € 1.12 million, amounted to € 2.27 million, up from both € 2.03 million in FY23A and our estimate of € 1.85 million. The EBIT margin was 25.3%, slightly below the FY23A figure of 28.9%. Net income at year-end was € 1.51 million, slightly up from € 1.24 million in FY23A and above our estimate of € 1.05 million. In light of the FY24A annual results, we have slightly revised our estimates for both the current year and the coming years. Specifically, we estimate FY25E value of production at € 15.00 million and EBITDA at € 4.90 million, corresponding to a margin (calculated on value of production) of 32.6%. For the following years, we expect the value of production to increase to € 21.00 million in FY27E (CAGR 24A–27E: 32.7%), with EBITDA reaching € 6.90 million (corresponding to a margin of 32.9%), up from € 3.40 million in FY24A. It is worth noting that the “Revenues Hard Backlog” refers to contracts already awarded to the Group, while the “Revenues Variable” represents our estimates concerning potential new contracts that may be secured by the Group. At the balance sheet level, we estimate a cash-positive net financial position of € 1.04 million for FY27E. We assessed Franchetti’s equity value using the DCF methodology. The DCF method (which prudentially includes a specific risk premium of 2.5% in the WACC calculation) yields an average equity value of approximately € 92.8 million. The target price is € 10.70, with a BUY rating and MEDIUM risk. |
