Solid World Group S.p.A.
6/07/2022
On 1 July 2022 Solid World Group S.p.A. announces that it has received today 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 06 July 2022.
The enterprise Solid World Group S.p.A. is the head of a group of 11 companies founded in the early 2000s by engineer Roberto Rizzo. The Group is a leader in the development and integration of the most modern and complete 3D digital technologies, in the field of software and hardware, within manufacturing companies to support and accelerate their transformation toward Factory 4.0.
Ultima Ricerca Solid World Group S.p.A.
UPDATE| Solid World Group’s year 2024 closes under the banner of strategic refocusing, which has primarily seen the gradual exit from the solar business (SolidFactory) to concentrate resources on the industrial and biomedical sectors, which are considered more synergetic, scalable and high-margin. The Group is now expanding its interests in the defence and aerospace sector, thanks to the acquisition of DuePiGreco and the start-up of the production of 3D components for military and institutional applications. The rationalisation of the perimeter brings a clear improvement in operating margins (EBITDA € 6.46 million vs € 3.40 million in 2023) despite slightly declining revenues. The transition of the software model from perpetual licences to SaaS continued, strengthening the quality and recurrence of revenues, while the Electrospider product established itself globally, with active orders in clinical and academic centres in Europe, the USA and the Middle East. In light of the results published in the annual report, we adjust our estimates for both the current year and the coming years, extending the time horizon to 2027. In particular, we estimate FY25E production value to grow to € 70.00 million and an EBITDA of € 4.75 million, corresponding to a margin of 10.1%. For the following years, we expect value of production to increase to € 90.00 million (CAGR FY24A-FY27E: 10.8%) in FY27E, with EBITDA of € 7.00 million and a margin of 8.1%, up from € 6.46 million in FY24A. We conducted the evaluation of the equity value of Solid World Group based on the DCF method and multiples of a sample of comparable companies. The DCF method (which for prudential purposes also includes a specific risk of 2.5% in the WACC calculation) yields an equity value of € 67.7 million. The equity value of Solid World Group using market multiples comes to € 44.3 million. This results in an average equity value of approximately € 56.0 million. The target price is € 3.00, rating BUY and risk MEDIUM. |
