In This Article:
SeSa SpA (BIT:SES), is a €464.93m small-cap, which operates in the tech hardware industry based in Italy. Whether it’s the next big thing in tech or an alliance with a partner in another industry, tech companies have plenty of opportunities for their companies to thrive. Tech analysts are forecasting for the entire hardware tech industry, a strong double-digit growth of 16.38% in the upcoming year , and an enormous growth of 48.96% over the next couple of years. This rate is larger than the growth rate of the IT stock market as a whole. Today, I will analyse the industry outlook, and also determine whether SeSa is a laggard or leader relative to its tech sector peers.
See our latest analysis for SeSa
What’s the catalyst for SeSa’s sector growth?
Many tech businesses are pursing growth through various strategies including new M&A, collaboration and alliances, as well as organic growth. In the previous year, the industry saw growth of 7.26%, though still underperforming the wider IT stock market. SeSa is neither a lagger nor a leader, and has been growing in-line with its industry peers at around 7.26% in the prior year. Furthermore, analysts are expecting the company to continue to grow with its industry peers and deliver a 16.60% growth next year.
Is SeSa and the sector relatively cheap?
The tech hardware sector’s PE is currently hovering around 16.83x, in-line with the IT stock market PE of 17.4x. This means the industry, on average, is fairly valued compared to the wider market – minimal expected gains and losses from mispricing here. Furthermore, the industry returned a similar 13.25% on equities compared to the market’s 12.00%. On the stock-level, SeSa is trading at a PE ratio of 16.83x, which is relatively in-line with the average tech hardware stock. In terms of returns, SeSa generated 13.97% in the past year, in-line with its industry average.
Next Steps:
SeSa’s future growth prospect aligns with that of the broader market and it is trading in-line with its peers. So if you like its growth prospects, you’ll be paying a fair value for the company. If the stock has been on your watchlist for a while, now may be the time to enter. However, before you make a decision on the stock, I suggest you look at SeSa’s fundamentals in order to build a holistic investment thesis.
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Historical Track Record: What has SES’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of SeSa? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.