Company DescriptionPirelli & C. S.p.A. manufactures and supplies tires for cars, motorcycles, and bicycles worldwide. It offers car tires under the P ZERO, Cinturato, Scorpion, Sottozero, Ice Zero, and Carrier brand names; motorcycle tires under the DIABLO Superbike, DIABLO Supercorsa, DIABLO Rain, DIABLO Wet, SCORPION MX, SCORPION Pro F.I.M., SCORPION XC, DIABLO Supercorsa SP, DIABLO Rosso Corsa, DIABLO Rosso III, ANGEL GT II, NIGHT DRAGON, MT 66 ROUTE, SCORPION Trail II, MT 60 RS, SCORPION Rally STR, DIABLO ROSSO Scooter, and ANGEL Scooter brands; motorsport tires under the P ZERO TROFEO R, SOTTOZERO, P7 Corsa, K, KM, RK, rain, and Slick brands; bike tires under the P Zero, Cinturato, and Scorpion brand names; and truck and bus tires. The company also provides Run Flat and Seal Inside specialties that enable cars to continue driving after a puncture; Pirelli Noise Cancelling System for reducing noise by rolling; and Elect, a line of tires for electric vehicles. It operates approximately 17,000 points of sale. Pirelli & C. S.p.A. was founded in 1872 and is headquartered in Milan, Italy.

How the Company Makes Money

Pirelli & C. SpA Financial Statement Overview

Summary

Pirelli & C. SpA demonstrates strong revenue growth and operational efficiency, as reflected in its income statement. The balance sheet shows moderate leverage and improved return on equity, though significant debt levels are a concern. The cash flow performance is robust, but recent inconsistencies in free cash flow growth highlight potential challenges.

Income Statement

Positive

Pirelli & C. SpA has demonstrated consistent revenue growth over the years, with a noticeable increase from 2020 to 2024. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has slightly decreased from 2023 to 2024, reflecting some pressure on profitability. EBIT and EBITDA margins are stable, highlighting operational efficiency.

Balance Sheet

Positive

The company's debt-to-equity ratio is moderate, suggesting a balanced approach to leverage. The return on equity has shown improvement, indicating enhanced profitability for shareholders. The equity ratio is stable, reflecting a solid asset base relative to liabilities. However, the total debt remains significant, which could pose risks if earnings fluctuate.

Cash Flow

Positive

Pirelli's operating cash flow has been consistently strong, supporting its ability to generate cash from operations. The free cash flow to net income ratio is favorable, indicating effective cash conversion. However, free cash flow growth has been inconsistent, with a decline from 2023 to 2024, suggesting potential challenges in capital expenditure management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
6.77B	6.65B	6.62B	5.33B	4.30B
	Gross Profit
4.22B	4.40B	4.41B	3.67B	2.86B
	EBIT
902.99M	808.33M	791.48M	577.05M	79.86M
	EBITDA
1.41B	1.41B	1.29B	1.08B	714.80M
	Net Income Common Stockholders
467.98M	479.08M	417.76M	302.80M	42.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.67B	1.48B	1.54B	2.00B	2.33B
	Total Assets
13.68B	13.53B	13.90B	13.88B	13.76B
	Total Debt
3.83B	3.96B	4.49B	5.28B	5.85B
	Net Debt
2.33B	2.71B	3.20B	3.39B	3.58B
	Total Liabilities
7.77B	7.91B	8.44B	8.84B	9.21B
	Stockholders Equity
5.76B	5.49B	5.32B	4.91B	4.45B
Cash Flow		Free Cash Flow
888.89M	960.83M	796.24M	632.40M	424.95M
	Operating Cash Flow
1.29B	1.36B	1.13B	919.07M	618.35M
	Investing Cash Flow
-421.26M	-392.86M	-326.62M	-256.39M	-251.68M
	Financing Cash Flow
-610.70M	-979.58M	-1.40B	-1.08B	439.40M

Pirelli & C. SpA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2PI		€6.18B	12.39	8.52%	3.24%	―	―
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
RACE		$114.51B	50.98	45.95%	0.66%	―	―
0H6I		€8.41B	―	1.06%	―	―	―

* Consumer Cyclical Sector Average

Performance Comparison

DE:2PI

Pirelli & C. SpA

6.11

0.28

4.80%

RACE

Ferrari

482.61

72.26

17.61%

GB:0H6I

Telecom Italia SPA

0.39

0.16

69.57%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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