Stock Analysis & Valuation Mexedia Società Per Azioni S.B. (ALMEX.PA)

• Previous Close: €13.20
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	1170.55	8768
Intrinsic value (DCF)	1.40	-89
Graham-Dodd Method		n/a
Graham Formula	231.36	1653

Strategic Investment Analysis

Company Overview

Mexedia Società Per Azioni S.B. (ALMEX.PA) is an Italy-based technology company specializing in telecommunications and business services. Formerly known as Airtime Partecipazioni S.p.A., the company rebranded in May 2022 to reflect its focus on automating and enhancing communication technologies for sales, marketing, and customer care. Operating in the financial services sector under asset management, Mexedia provides innovative solutions to streamline interactions between brands and customers. Headquartered in Rome, the company leverages technology to optimize business processes, though it faces financial challenges with recent net losses. Listed on Euronext Paris, Mexedia aims to carve a niche in the competitive European tech and financial services landscape.

Investment Summary

Mexedia Società Per Azioni S.B. presents a high-risk investment opportunity due to its recent financial performance, including a net loss of €20.01 million in the latest fiscal period and negative EPS of -€4.61. The company operates in the competitive telecommunications and business services sector, with a market cap of approximately €28.46 million. While its beta of -0.43 suggests low correlation with broader market movements, the lack of positive operating cash flow and profitability raises concerns. Investors should closely monitor the company's ability to pivot toward sustainable growth and profitability in the evolving tech and financial services industry.

Competitive Analysis

Mexedia operates at the intersection of technology and financial services, offering communication automation solutions for businesses. Its competitive positioning is challenged by larger, more established players in both the telecommunications and asset management sectors. The company's niche focus on automating customer interactions provides differentiation, but its financial instability (evidenced by recent losses) limits its ability to scale or invest in R&D. Unlike competitors with diversified revenue streams, Mexedia's reliance on a narrow service offering increases vulnerability to market shifts. Its rebranding in 2022 suggests a strategic pivot, but execution risks remain high given the capital-intensive nature of the industry. The lack of reported operating cash flow or capital expenditures further obscures its capacity to compete effectively.

Major Competitors

• Atos SE (ATOS.PA): Atos is a global leader in digital transformation, cloud, and cybersecurity services, with a strong European presence. Its diversified portfolio and larger scale give it a competitive edge over Mexedia in offering integrated solutions. However, Atos has faced financial struggles recently, including declining revenues, which may level the playing field for niche players like Mexedia.
• Capgemini SE (CAP.PA): Capgemini is a multinational IT services and consulting company with a robust client base across industries. Its strength lies in end-to-end digital transformation services, far surpassing Mexedia's narrower focus. However, Capgemini's size may make it less agile in addressing specialized customer communication needs compared to smaller players.
• Telefónica SA (TEF.MC): Telefónica is a telecommunications giant with extensive infrastructure and resources. While it operates in broader telecom services compared to Mexedia's niche, its scale and customer base pose indirect competition in communication solutions. Telefónica's financial stability and global reach make it a formidable player, though less focused on the specific automation services Mexedia targets.