Phiadvisor Enter Long signal on Tessi (TES-FR)
Tessi is a €358 Mn market cap and specializes in information flow management and processing services. The activity is organized around 2 segments : 1/processing of documents and payment means: preparation of letters, troubleshooting, data entry, conversion of information into data forms that computer systems can use, physical and digital document archiving, extraction of documents. 2/ marketing services, electronic information and document management: publishing and integration of IT solutions accessible via the web, operation of remote declaration portals, etc. Moreover, the group assures the management of promotional operations for advertisers.
Company’s revenue is mainly achieved in France (72% of sales), and in Europe-Middle East-Africa (25%) and the remaining part in South America (3%).
Tessi just posted F9M 2020 revenue of €348m, a +3.5% change yoy but corresponding to a -7.4% organic decline. Therefore the Covid impact remains limited and growth is expected to resume in 2021. The company post double digit margins coupled with solid cash-flows, and use to grow both organically and by acquisitions, thanks to a strong balance sheet.
Short term catalyst: Digitization in accelerating mode.
This signal looks consistent with the Major Bullish Trend in the European Technology sector.