Saipem SpA (SPEA) AI Stock Analysis

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19 Followers

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Positive Factors

Dividend Policy

Saipem's new dividend policy will deliver around 7% yield in 2025-26, which shareholders could potentially appreciate.

Financial Growth

A significant improvement in EBITDA of 44% is anticipated for the fourth quarter of 2024, indicating strong financial growth.

Merger Prospects

Saipem and Subsea7 announced that they have reached an agreement of a possible merger of the two companies, creating a global leader in energy services.

Negative Factors

Investor Response

Despite strong fundamentals, there has been little investor response, and the share price has dropped approximately 35% from its peak.

Operational Challenges

Potential operating issues on the Courselle and Thai Oil projects could result in costs exceeding the company's provisions, posing financial risks.

Project Concerns

The Thai Oil project has experienced budget increases, raising concerns about the project's execution and financial impact.

Saipem SpA (SPEA) vs. iShares MSCI Germany ETF (EWG)

Market Cap

€4.58B

Dividend Yield7.4%

Average Volume (3M)3.23K

Price to Earnings (P/E)14.8

Beta (1Y)0.93

Revenue GrowthN/A

EPS GrowthN/A

CountryDE

Employees30,000

SectorEnergy

Sector Strength42

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.04

Shares Outstanding1,995,557,700

10 Day Avg. Volume2,166

30 Day Avg. Volume3,232

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)1.69

Price to Sales (P/S)0.00

P/FCF Ratio5.87

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€3.33

Price Target Upside44.78% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Saipem SpA Business Overview & Revenue Model

Company DescriptionSaipem SpA provides energy and infrastructure solutions worldwide. The company operates through five divisions: Offshore Engineering & Construction (E&C), Onshore Engineering & Construction, Offshore Drilling, Onshore Drilling, and XSIGHT. It offers engineering, construction, installation of platforms, pipelines, subsea fields, maintenance, modification, operation, and decommissioning activities, as well as develops marine wind farms and energy integration projects. The company also designs onshore project in the LNG and regasification, refining, petrochemical, fertilizers, pipelines, gas, oil processing stations, floaters, renewables, biotechnologies, CO2 capture, transportation, storage, and hydrogen production and transportation. In addition, the company provides procurement, project management, construction, and engineering integrated services for the energy industry markets and public infrastructures, as well as offshore and onshore drilling services on all types of rigs and in all geographical areas. As of December 31, 2021, its offshore drilling fleet consisted of twelve vessels, including six ultra-deep-water units, five high specification jack-ups, and one standard jack-ups. The company also operates 9 fabrication yards and a sea fleet of 41 vessels; and onshore drilling fleet comprised 84 units. Saipem S.p.A. is headquartered in Milan, Italy.

How the Company Makes Money

Saipem SpA Financial Statement Overview

Summary

Saipem SpA has shown a solid financial recovery with significant improvements in revenue growth, profit margins, and cash flow. The company has effectively reduced leverage and strengthened its equity position. Despite past challenges with profitability and high debt levels, the current financial statements reflect a positive trajectory in operational efficiency and financial health.

Income Statement

Positive

Saipem SpA has shown strong revenue growth with a 22.45% increase from 2023 to 2024. The gross profit margin improved to 23.26% in 2024 from 18.44% in 2023, indicating better cost management. Net profit margin also saw improvement, rising to 2.10% in 2024 from 1.51% in 2023. However, the company faced challenges in previous years with negative EBIT and EBITDA, which have now turned positive, reflecting a recovery trajectory.

Balance Sheet

Positive

The debt-to-equity ratio improved to 0.26 in 2024 from 1.29 in 2021, highlighting reduced leverage. The equity ratio increased to 51.47% in 2024, indicating a stronger equity position. However, the company had a history of high debt levels, which have been decreasing but still require close monitoring. Return on equity improved significantly, reaching 12.13% in 2024 from negative values in previous years.

Cash Flow

Positive

Saipem SpA demonstrated a robust 596.15% growth in free cash flow from 2023 to 2024, reflecting strong cash generation capabilities. The operating cash flow to net income ratio also improved, indicating efficient cash conversion. The company successfully turned around its free cash flow position, which was negative in earlier years, underscoring effective cash flow management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
14.55B	11.88B	9.98B	6.88B	7.34B
	Gross Profit
3.38B	2.19B	1.71B	-485.00M	1.40B
	EBIT
606.00M	437.00M	73.00M	-2.27B	-217.00M
	EBITDA
1.33B	951.00M	519.00M	-1.83B	-283.00M
	Net Income Common Stockholders
306.00M	179.00M	-315.00M	-2.47B	-1.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.79B	2.22B	2.13B	1.47B	1.58B
	Total Assets
14.52B	12.87B	12.40B	11.54B	11.26B
	Total Debt
3.02B	3.09B	3.03B	3.94B	3.46B
	Net Debt
1.61B	953.00M	981.00M	2.52B	1.94B
	Total Liabilities
11.99B	10.47B	10.31B	11.19B	8.31B
	Stockholders Equity
2.52B	2.39B	2.07B	326.00M	2.92B
Cash Flow		Free Cash Flow
724.00M	104.00M	-1.00B	-208.00M	-199.00M
	Operating Cash Flow
1.06B	586.00M	-477.00M	90.00M	123.00M
	Investing Cash Flow
-542.00M	-175.00M	5.00M	-490.00M	-463.00M
	Financing Cash Flow
-544.00M	-282.00M	871.00M	331.00M	-238.00M

Saipem SpA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPEA		€4.58B	14.77	12.44%	7.40%	―	―
Sector *	57 Neutral	$7.22B	3.15	-4.49%	5.63%	0.82%	-49.15%
0P3O		€943.04M	9.78	27.86%	3.48%	―	―
0N9S		€40.63B	16.00	4.83%	7.49%	―	―
0NQP		€17.54B	13.93	16.18%	5.44%	―	―
0HXB		€16.30B	9.95	10.53%	4.95%	―	―
T9O		€175.60M	13.16	5.46%	3.96%	―	―

* Energy Sector Average

Performance Comparison

DE:SPEA

Saipem SpA

2.30

0.30

15.00%

GB:0P3O

Alerion CleanPower

17.42

-0.96

-5.22%

GB:0N9S

ENI S.p.A.

13.35

0.22

1.68%

GB:0NQP

SNAM S.p.A.

5.20

1.08

26.21%

GB:0HXB

Tenaris

15.46

1.13

7.89%

DE:T9O

Gas Plus S.p.A.

3.79

1.44

61.28%

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.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.