Sesa is back in growth mode
Post 3Q25 Results analysis
Introduction to Sesa
Sesa Spa is an Italian IT company providing value-added distribution, integration and engineering services and proprietary software.
Sesa is a tremendous growth history over the last 3 decades, with a strong management and still a long runway for future growth as they pursue internationalization (currently expanding to Northwestern Europe).
After the Digital Value scandal (Sesa possesses a minority stake of 3,75% of Digital Value (DGV) and 3 Quarters in a row of EBITDA decrease (mainly due to cessation of the subsidies positively impacting their solar hardware distribution business), Sesa is currently trading cheaply for the growth outlook it offers and the verticals it operates in.
Sesa has superior scale in the value-added distribution segment and its business mix is shifting to its higher margin business segments. After beating the streets forecasts in Q3 and overcoming the temporary headwinds, Sesa is set to continue its sustained growth.
Since we published the initial analysis at MORAM Capital in late December, the stock is up +35%.
In this writeup you can find the analysis of the 3Q25 results, explaining the reasons why the stock price shot up. This Sunday we will publish the updated valuation model and thesis, explaining whether the revaluation is justified and if we still view Sesa as an investment that can deliver alpha in the medium-term.