Amplifon S.p.A. (AMP) AI Stock Analysis

• Market Cap: €1.81B
• Dividend Yield: 2.13%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.72
• Revenue Growth: 2.05%
• EPS Growth: -25.46%
• Country: IT
• Employees: 11,603
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.23
• Shares Outstanding: 226,388,630
• 10 Day Avg. Volume: 1,761,726
• 30 Day Avg. Volume: 1,873,340
• PEG Ratio: -0.91
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €8.95
• Price Target Upside: 10.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.79
• Revenue Forecast (FY): €2.45B

• Rating: 47 Neutral
• Price Target: €8.00 ▼(-0.87% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is weighed down primarily by weakening financial performance (margin compression, zero free cash flow in 2025, and elevated leverage) and very bearish technicals (below all major moving averages with negative MACD). Valuation is only modestly supportive due to the dividend yield, but the high P/E limits upside support.

Positive Factors

Large global clinic network

A broad international clinic footprint creates a durable competitive advantage: local presence drives patient acquisition, high-touch fittings raise conversion and retention, and scale supports purchasing leverage for devices and standardized clinical processes that sustain margins over time.

Recurring service revenue stream

After-sales services and consumables generate recurring, higher-margin revenue and increase customer lifetime value. This business model reduces reliance on one-off device sales, smoothing cash flows and creating long-term revenue resilience through repeat clinic visits and service contracts.

Prior multi-year free cash flow track record

Historically consistent free cash flow (2020–2024) demonstrates the company’s ability to convert earnings into cash, supporting reinvestment, dividends and deleveraging potential. That track record underpins financial flexibility if cash conversion normalizes beyond short-term shocks.

Negative Factors

Margin compression and falling profitability

Sustained margin erosion materially weakens long-term return on capital and limits the company’s ability to fund growth or sustain payouts. Declining gross and net margins suggest competitive pressure or cost structure issues that could persist absent structural remediation.

Elevated leverage limits flexibility

A relatively debt-heavy capital structure reduces capacity to invest, pursue M&A, or absorb cyclical shocks without raising costs. Persistent leverage narrows strategic optionality and raises refinancing and interest-rate sensitivity over the medium term.

Weakening cash conversion; zero FCF in 2025

A collapse in free cash flow to zero is a durable concern: reduced internal funding capacity limits capex, dividend sustainability and deleveraging. If cash conversion problems reflect structural working-capital or pricing issues, recovery could be slow and capital-constrained.

Amplifon S.p.A. Business Overview & Revenue Model

Company Description

Amplifon S.p.A. retails hearing care products and services that help people rediscover various emotions of sound. The company offers ampli-easy, ampli-mini, ampli-connect, and ampli-energy hearing devices. It also provides fitting of customized products. As of March 18, 2022, the company operated a network of approximately 9,200 points of sale in 25 countries and 5 continents. The company also sells its products through 1,350 franchisees. It has operations in Europe, the Middle East, Africa, the United States, Asia, and Oceania. The company was founded in 1950 and is headquartered in Milan, Italy.

How the Company Makes Money

Amplifon primarily makes money through retail hearing-care operations. Its main revenue stream is the sale of hearing aids and related devices (typically bundled with professional services such as hearing tests, fitting, and fine-tuning). A significant portion of earnings also comes from service revenues, including follow-up care, maintenance, repairs, and the sale of accessories and consumables (e.g., parts and hearing-aid care products). Amplifon generates revenue by driving patient traffic to its clinics (via marketing, referrals, and local presence), converting consultations into device purchases, and retaining customers through ongoing care over the life of the device. The company’s scale and clinic network can support profitability through purchasing leverage with hearing-aid manufacturers and standardized clinical/retail processes; specific partnership terms or supplier arrangements are not publicly specified here (null).

Amplifon S.p.A. Financial Statement Overview

Summary

Financials show late-cycle pressure: 2025 revenue dipped slightly, net margin fell sharply versus prior years, and free cash flow dropped to zero. Leverage remains elevated (~1.4–1.5x debt/equity), reducing flexibility while profitability and cash conversion weaken.

Income Statement

Revenue grew steadily from 2021–2024, but 2025 shows a slight decline (-0.5%). Profitability has weakened over time: net margin fell from ~8.4% (2022) to ~6.0% (2024) and ~3.8% (2025), with net income down meaningfully in 2025. EBITDA margins remain healthy (~21–24%), but the 2025 gross margin appears unusually low versus prior years, creating added uncertainty around underlying profitability that year.

Balance Sheet

Leverage is elevated and persistent, with debt running around 1.4–1.5x equity in 2022–2025 (and higher historically), which limits balance-sheet flexibility. Returns on equity were solid in 2021–2023 but have trended down into 2024–2025, consistent with softer earnings. Asset base is sizeable and equity remains positive, but the capital structure is still debt-heavy for a period of decelerating profit momentum.

Cash Flow

Operating cash generation is positive, but cash conversion has weakened: operating cash flow declined in 2025 versus 2024, and free cash flow dropped to zero in 2025 after several years of solid positive free cash flow (2020–2024). Prior years showed decent support from free cash flow relative to net income, but the abrupt 2025 deterioration raises questions on working capital, investment needs, or one-off cash uses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.40B	2.41B	2.26B	2.12B	1.95B
Gross Profit	199.02M	1.36B	548.45M	1.18B	1.11B
EBITDA	514.10M	557.25M	522.01M	513.82M	468.72M
Net Income	91.33M	145.37M	155.14M	178.53M	157.78M
Balance Sheet
Total Assets	3.57B	3.99B	3.69B	3.58B	3.52B
Cash, Cash Equivalents and Short-Term Investments	0.00	288.85M	194.00M	229.54M	318.44M
Total Debt	1.53B	1.72B	1.52B	1.50B	1.61B
Total Liabilities	2.57B	2.84B	2.59B	2.54B	2.59B
Stockholders Equity	998.21M	1.15B	1.10B	1.04B	925.18M
Cash Flow
Free Cash Flow	0.00	366.19M	271.89M	342.99M	348.97M
Operating Cash Flow	274.85M	449.35M	413.54M	458.62M	462.37M
Investing Cash Flow	-178.97M	-335.10M	-261.48M	-193.78M	-533.61M
Financing Cash Flow	-172.65M	-18.85M	-135.06M	-353.80M	-208.64M

Amplifon S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AMP, the sentiment is Negative. The current price of 8.07 is below the 20-day moving average (MA) of 11.41, below the 50-day MA of 12.74, and below the 200-day MA of 15.23, indicating a bearish trend. The MACD of -1.22 indicates Positive momentum. The RSI at 14.94 is Positive, neither overbought nor oversold. The STOCH value of 5.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:AMP.

Amplifon S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHN	74 Outperform	€724.14M	19.25	―	1.86%	12.82%	7.37%
GPI	63 Neutral	€472.38M	22.00	―	5.24%	11.25%	-76.44%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
AMP	47 Neutral	€1.81B	34.09	8.86%	2.13%	2.05%	-25.46%