| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 56.00 | -37 |
| Intrinsic value (DCF) | 297.16 | 232 |
| Graham-Dodd Method | 31.00 | -65 |
| Graham Formula | 38.50 | -57 |
SeSa S.p.A. is a leading Italian IT solutions provider specializing in value-added distribution, software, system integration, and business services. Headquartered in Empoli, Italy, the company operates across multiple sectors, including cloud computing, digital security, AI and machine learning, ERP software, and IoT solutions. SeSa serves SMEs and enterprises, offering end-to-end digital transformation services, IT infrastructure management, and business process outsourcing. With a strong presence in Italy and internationally, the company leverages partnerships with major tech players like Microsoft, SAP, Adobe, and Hitachi to deliver cutting-edge solutions. SeSa’s diversified business model spans software development, IT consulting, and value-added distribution, positioning it as a key player in Europe’s growing IT services market. The company’s subsidiaries enhance its capabilities in cloud services, digital manufacturing, and retail IT solutions, making it a one-stop shop for businesses seeking digital innovation. As part of ITH SpA, SeSa benefits from strategic synergies in the broader technology and logistics sectors.
SeSa S.p.A. presents a stable investment opportunity with a diversified IT services portfolio and strong partnerships with global tech leaders. The company’s €3.16B revenue and €78.3M net income (FY 2024) reflect steady profitability, supported by a healthy operating cash flow of €137.6M. Its €577.5M cash reserves provide liquidity, though €422.9M in total debt warrants monitoring. With a beta of 0.994, SeSa exhibits market-correlated volatility, appealing to moderate-risk investors. The dividend yield (~1.9% at current share price) adds income appeal. However, competition in IT services and reliance on SME clients in Italy pose risks. Investors should weigh its growth in cloud/AI solutions against margin pressures in commoditized IT distribution.
SeSa S.p.A. competes in the fragmented IT services and distribution market, differentiating itself through vertical integration (software development to outsourcing) and partnerships with SAP, Microsoft, and Adobe. Its competitive edge lies in serving Italian SMEs—a niche often overlooked by global IT giants—with localized solutions like ERP (Microsoft Dynamics, SAP Business One) and industry-specific software (e.g., 3cad for furniture). The company’s Value-Added Distribution segment benefits from high-touch service, unlike pure-play distributors. However, it faces pricing pressure from larger European IT service providers (e.g., Atos, Capgemini) and lacks the scale of global cloud hyperscalers. SeSa’s reliance on Italy (~70% of revenue) limits diversification compared to multinational peers. Strengths include strong cash reserves for M&A and a sticky client base via long-term outsourcing contracts. Weaknesses are its middling operating margins (~2.5%) and exposure to Italy’s slower IT spend growth versus Northern Europe.