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

• Market Cap: €3.28B
• Dividend Yield: 2.17%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.65
• Revenue Growth: 2.05%
• EPS Growth: -25.46%
• Country: IT
• Employees: 11,603
• Sector: Healthcare
• Sector Strength: 45
• 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: €15.90
• Price Target Upside: 19.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €13.50 ▲(1.28% Upside)

Amplifon S.p.A.'s stock score is primarily influenced by its stable financial performance, despite challenges with revenue growth and leverage. The technical analysis indicates a bearish trend, with the stock being oversold. Valuation metrics suggest the stock is relatively expensive, but the dividend yield offers some compensation. The absence of recent earnings call insights or notable corporate events limits additional context.

Positive Factors

Business Model Strength

Amplifon's diversified revenue streams, including direct sales, online sales, and after-sales services, provide a robust business model that supports long-term stability and customer retention.

Cash Generation Ability

Positive free cash flow growth indicates Amplifon's ability to generate cash efficiently, supporting reinvestment in business operations and potential debt reduction.

Market Position

As a global leader in hearing aids, Amplifon benefits from strong brand recognition and market reach, which can drive sustained revenue and competitive advantage.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests challenges in maintaining sales momentum, which could impact long-term profitability and market share if not addressed.

Increased Leverage

Higher leverage increases financial risk and may constrain Amplifon's ability to invest in growth opportunities, affecting its financial flexibility.

Decreased Profitability

A declining net profit margin indicates reduced profitability, which could hinder Amplifon's ability to reinvest in its business and reward shareholders.

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 stable profitability and cash flow management, but faces challenges with declining revenue growth and increased leverage. The company needs to address these issues to maintain financial health and shareholder value.

Income Statement

Amplifon S.p.A. shows a stable gross profit margin around 56%, indicating efficient cost management. However, the net profit margin has decreased to 5.2% in the TTM, reflecting reduced profitability. The revenue growth rate is negative in the TTM, suggesting a decline in sales performance. EBIT and EBITDA margins have also slightly decreased, indicating potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.81 in the TTM, indicating higher leverage and potential financial risk. Return on equity has decreased to 11.4%, suggesting reduced profitability for shareholders. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow growth is positive at 2.6% in the TTM, showing improved cash generation. The operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. However, the free cash flow to net income ratio is strong at 0.72, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.42B	2.41B	2.26B	2.12B	1.95B	1.56B
Gross Profit	1.36B	1.36B	548.45M	1.18B	1.11B	863.16M
EBITDA	549.97M	557.25M	522.01M	513.82M	468.72M	361.67M
Net Income	126.08M	145.37M	155.14M	178.53M	157.78M	101.00M
Balance Sheet
Total Assets	3.86B	3.99B	3.69B	3.58B	3.52B	3.23B
Cash, Cash Equivalents and Short-Term Investments	242.69M	288.85M	194.00M	229.54M	318.44M	554.02M
Total Debt	1.83B	1.72B	1.52B	1.50B	1.61B	1.56B
Total Liabilities	2.85B	2.84B	2.59B	2.54B	2.59B	2.43B
Stockholders Equity	1.01B	1.15B	1.10B	1.04B	925.18M	800.88M
Cash Flow
Free Cash Flow	318.25M	366.19M	271.89M	342.99M	348.97M	330.63M
Operating Cash Flow	442.77M	449.35M	413.54M	458.62M	462.37M	391.47M
Investing Cash Flow	-257.99M	-335.10M	-261.48M	-193.78M	-533.61M	-134.28M
Financing Cash Flow	-92.17M	-18.85M	-135.06M	-353.80M	-208.64M	151.52M

Amplifon S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.33
• 50DMA: Negative
• 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 Negative. The current price of 13.33 is below the 20-day moving average (MA) of 13.74, below the 50-day MA of 14.38, and below the 200-day MA of 17.62, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 37.79 is Neutral, neither overbought nor oversold. The STOCH value of 47.55 is Neutral, 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	68 Neutral	€561.50M	31.91	―	1.72%	12.82%	7.36%
GPI	63 Neutral	€486.78M	22.33	―	5.08%	11.25%	-76.44%
AMP	55 Neutral	€3.28B	28.38	11.68%	2.17%	2.05%	-25.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%