There are 15 companies, of which eight newcomers (Altea Green Power, Dba, Allcore, Ala, Mare Engineering, Digitouch, Nvp and Dhh):
- 5 are active in the Tech sector (Dhh, Almawave, Cyberoo, Circle and Nvp)
- 5 in the Industrials sector (Altea Green Power, Dba Group, Redelfi, Reway Group and Mare Engineering)
- 2 in Consumers (Allcore and Ala)
- 2 in Media (Casta Diva Group and Digitouch)
- 1 in Capital Goods (Ecomembranes).
These are the companies included in the third edition of the Websim EGM Watchlistthe Websim Corporate list of the best performing companies rated among those listed on theEuroNext Growth Milanthe segment of Italian Stock Exchange dedicated to dynamic and competitive SMEs with high growth potential. The algorithmically derived Watchlist includes eVISO, Energy, Maps Group, Casta Diva Group, Allcore, SG Company, Talea Group, ISCC Fintech, High Quality Food, Cube Labs and TMP Group, best picks among the companies actively covered by Websim Corporate Research.
Company numbers
These are securities that share expectations of profitability and returns on invested capital that are higher than those of the market, and the ability to generate significant free cash flow (valued at approximately €290 million in the three-year period 2024-2026), as well as by a limited use of leverage. From an evaluation point of view, while maintaining the discount at which the EGM Company quoted in terms of EV/EBITDA compared to stocks with higher capitalization and liquidity, the SMEs included in the Watchlist trade at a premium compared to the EGM market, respectively at 22% and 3% for the years 2024 and 2025. With a total capitalization of 1.2 billion euros, the selected companies represent approximately 13% of the total capitalization of EuroNext Growth Milan and express an average capitalization per single company almost double that of the market (an average of approximately 80 million against 45 million).
The expectations
According to the analyzed data, the companies included in the new EGM Watchlist are expected to record a consolidated turnover 2026 equal to 1.4 billion euros, up 14% on average per year compared to the 957 million recorded in 2023 (+37% compared to 2022), a value substantially in line with what is expected by the EGM market at an aggregate level. As regards EBITDA, it is expected that in 2026 it will be equal to approximately 310 million euros, corresponding to an EBITDA margin of 21.9%, an improvement of 450 bps compared to what was recorded in 2023 (17.4%) and higher by over 470 bps than the profitability expected, at an aggregate level, by the EGM market (17.2%). Finally, expectations for free cash flow in the three-year period 2024-26 are approximately 290 million euros, higher than 20% of the current enterprise value of the companies under investigation.
Past performances
To check if theISA algorithm is actually able, often in the absence of active coverage, to identify the securities capable of generating alpha, one can observe the recorded performance from the latest edition of the EGM Watchlist: using an investment simulator and assuming an equal allocation of capital among the 15 stocks selected last February, the EGM Watchlist closes with a positive absolute performance of 3.7%, or 3.4 percentage points higher than the performance of the FTSE Italia Growth index, which recorded a fractional increase in the period in question (+0.34%). This performance is cumulative with that already recorded by our first Watchlist, with an absolute and relative performance that overall rises to +12.3% and +21.0% respectively.
