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

• Market Cap: €3.05B
• Dividend Yield: 2.13%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.58
• 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): 0.09
• Shares Outstanding: 226,388,630
• 10 Day Avg. Volume: 1,761,726
• 30 Day Avg. Volume: 1,873,340
• PEG Ratio: -5.33
• Price to Book (P/B): 4.88
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 15.32
• 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: €15.15
• Price Target Upside: 11.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €14.00 ▲(3.02% Upside)

The overall stock score reflects a stable financial position with strong cash flow generation, but is offset by declining revenue and profitability margins. Technical indicators suggest a bearish trend, and the stock appears overvalued based on its P/E ratio.

Positive Factors

Cash Flow Generation

Strong free cash flow growth indicates improved cash generation capabilities, providing financial flexibility for reinvestment and debt reduction.

Business Model Strength

The direct-to-consumer model enhances customer engagement and control over distribution, supporting stable revenue streams and market presence.

Partnerships and Alliances

Partnerships with manufacturers allow access to diverse products and competitive pricing, strengthening market position and customer offerings.

Negative Factors

Declining Revenue

Negative revenue growth suggests challenges in sales expansion, potentially impacting long-term profitability and market share.

Profitability Margins

Decreased net profit margins indicate reduced profitability, which may affect the company's ability to invest in growth and innovation.

High Leverage

High leverage can pose financial risks, limiting the company's ability to manage economic downturns and invest in strategic opportunities.

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 generates revenue primarily through the sale of hearing aids and audiological services. The company operates a direct-to-consumer model through its extensive network of retail stores and online platforms, where customers can purchase hearing aids and receive professional fitting services. Key revenue streams include sales from hearing aids, ongoing maintenance and aftercare services, and audiological assessments. Additionally, Amplifon has established partnerships with various healthcare providers and insurance companies, which facilitate the distribution of its products and broaden its customer base. The company also benefits from strategic alliances with leading hearing aid manufacturers, allowing it to offer a diverse range of products and maintain competitive pricing.

Amplifon S.p.A. Financial Statement Overview

Summary

Amplifon S.p.A. demonstrates a stable financial position with strong cash flow generation. However, declining revenue and profitability margins highlight potential operational challenges. High leverage remains a risk factor.

Income Statement

Amplifon S.p.A. shows a mixed performance in its income statement. The gross profit margin is stable, indicating efficient cost management. However, the net profit margin has decreased over the TTM, reflecting reduced profitability. The revenue growth rate is negative in the TTM, suggesting a decline in sales. EBIT and EBITDA margins have also decreased slightly, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity has decreased, reflecting lower profitability for shareholders. The equity ratio is moderate, suggesting a balanced asset structure but with room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis shows strong free cash flow growth in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, suggesting consistent cash flow relative to earnings. However, the free cash flow to net income ratio has decreased, indicating potential challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.41B	2.41B	2.26B	2.12B	1.95B	1.56B
Gross Profit	1.27B	1.36B	548.45M	1.18B	1.11B	863.16M
EBITDA	535.70M	557.25M	522.01M	513.82M	468.72M	361.67M
Net Income	115.62M	145.37M	155.14M	178.53M	157.78M	101.00M
Balance Sheet
Total Assets	3.84B	3.99B	3.69B	3.58B	3.52B	3.23B
Cash, Cash Equivalents and Short-Term Investments	237.31M	288.85M	194.00M	229.54M	318.44M	554.02M
Total Debt	1.89B	1.72B	1.52B	1.50B	1.61B	1.56B
Total Liabilities	2.87B	2.84B	2.59B	2.54B	2.59B	2.43B
Stockholders Equity	969.83M	1.15B	1.10B	1.04B	925.18M	800.88M
Cash Flow
Free Cash Flow	322.48M	366.19M	271.89M	342.99M	348.97M	330.63M
Operating Cash Flow	424.73M	449.35M	413.54M	458.62M	462.37M	391.47M
Investing Cash Flow	-210.42M	-335.10M	-261.48M	-193.78M	-533.61M	-134.28M
Financing Cash Flow	-139.26M	-18.85M	-135.06M	-353.80M	-208.64M	151.52M

Amplifon S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AMP, the sentiment is Neutral. The current price of 13.59 is below the 20-day moving average (MA) of 13.63, above the 50-day MA of 13.56, and below the 200-day MA of 16.23, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 55.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€610.87M	34.71	―	1.86%	12.82%	7.37%
GPI	63 Neutral	€518.47M	23.79	―	5.24%	11.25%	-76.44%
AMP	57 Neutral	€3.05B	26.42	11.68%	2.13%	2.05%	-25.46%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%