Azimut Holding SPA (AZM) AI Stock Analysis

• Market Cap: €3.86B
• Dividend Yield: 5.59%
• Average Volume (3M): 838.79K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.20
• Revenue Growth: -3.05%
• EPS Growth: 26.73%
• Country: IT
• Employees: 872
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 0.81
• Shares Outstanding: 145,330,640
• 10 Day Avg. Volume: 735,363
• 30 Day Avg. Volume: 838,790
• PEG Ratio: -0.21
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.76
• 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: €23.20
• Price Target Upside: -14.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 83 Outperform
• Price Target: €30.00 ▲(10.05%Upside)

Azimut Holding SPA's stock is rated highly due to its strong financial performance, particularly in profitability and low leverage, combined with positive technical indicators and attractive valuation metrics. Despite the current cash flow issues, the company's overall financial health and market position are sound, making it a promising investment.

Azimut Holding SPA Business Overview & Revenue Model

Company Description

Azimut Holding S.p.A. operates in the asset management sector. It distributes, manages, and promotes financial and insurance products in Italy, Luxembourg, Ireland, China, Principality of Monaco, Switzerland, Singapore, Brazil, Mexico, Taiwan, Chile, the United States, Australia, Turkey, the United Arab Emirates, and Egypt. It sells and manages Italian mutual funds and Italian alternative investment funds, as well as individual investment portfolios; and distributes group and third-party products in Italy through a network of financial advisors. The company also manages multi strategy funds; and offers life insurance products. Azimut Holding S.p.A. was incorporated in 1989 and is headquartered in Milan, Italy.

How the Company Makes Money

Azimut Holding SPA generates revenue primarily through management and performance fees associated with its investment products and services. The company charges clients a percentage of the assets under management (AUM) for managing their investments, which constitutes a significant portion of its revenue. Additionally, Azimut earns performance fees when its managed funds exceed certain predefined benchmarks or deliver superior investment returns. The firm may also receive advisory fees for providing financial and investment advice to clients. Moreover, Azimut's international presence, strategic partnerships, and acquisitions expand its market reach and contribute to its earnings by diversifying its revenue streams and increasing its client base.

Azimut Holding SPA Financial Statement Overview

Summary

Azimut Holding SPA exhibits strong profitability and growth with high net profit margins and a solid balance sheet. However, negative cash flow in 2024 indicates potential liquidity challenges.

Income Statement

Azimut Holding SPA demonstrates a strong income statement with significant revenue and net income growth. The gross profit margin is consistently high, and improvements are noted in EBIT and EBITDA margins. The revenue growth rate from 2023 to 2024 is 5.58%, indicating a positive trajectory. The net profit margin improved to 39.21% for 2024. There is a slight decline in gross profit margin due to reduced gross profit relative to revenue growth, but overall, the income statement reflects strong profitability and growth.

Balance Sheet

The balance sheet reveals a solid equity position with stockholders' equity increasing to €1.92 billion in 2024. The debt-to-equity ratio is very low, indicating low financial leverage and strong financial stability. Return on equity (ROE) is impressive at 29.96% in 2024, showcasing efficient use of equity capital to generate profits. The equity ratio is 18.79%, highlighting a healthy balance between equity and total assets. Overall, the balance sheet is stable with minor concerns regarding cash and short-term investments, which have decreased over the period.

Cash Flow

Cash flow analysis indicates some challenges, with negative operating cash flow and free cash flow in 2024. The operating cash flow to net income ratio is negative, which may raise concerns about cash generation relative to net income. However, the company has managed capital expenditures efficiently. The negative trend in free cash flow growth suggests potential liquidity challenges. Despite this, past years showed stronger cash flow performance, indicating that 2024 might be an outlier.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.39B	1.16B	1.31B	923.88M
Gross Profit	690.49M	860.39M	450.04M	590.12M	384.51M
EBITDA	682.01M	691.29M	588.34M	782.46M	495.37M
Net Income	576.16M	434.57M	406.46M	605.46M	381.69M
Balance Sheet
Total Assets	10.23B	9.96B	9.51B	9.92B	8.47B
Cash, Cash Equivalents and Short-Term Investments	413.94M	470.48M	314.01M	192.46M	79.17M
Total Debt	27.82M	537.22M	539.67M	897.66M	948.50M
Total Liabilities	8.29B	8.35B	8.04B	8.69B	7.59B
Stockholders Equity	1.92B	1.55B	1.41B	1.18B	865.89M
Cash Flow
Free Cash Flow	-200.29M	419.31M	-153.09M	875.40M	253.22M
Operating Cash Flow	-197.48M	468.85M	-104.84M	926.19M	288.31M
Investing Cash Flow	295.12M	-432.76M	-189.66M	-335.86M	-79.47M
Financing Cash Flow	-237.39M	-297.49M	-175.75M	-255.94M	-267.16M

Azimut Holding SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AZM, the sentiment is Positive. The current price of 27.26 is above the 20-day moving average (MA) of 26.31, above the 50-day MA of 25.06, and above the 200-day MA of 23.27, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 91.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:AZM.

Azimut Holding SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZM	83 Outperform	€3.86B	6.71	31.12%	5.59%	-3.05%	26.73%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%
0QTI		€1.92B	7.66	16.42%	6.41%	―	―
0DQZ		€5.41B	12.76	30.35%	7.93%	―	―
0RK6		€8.96B	4.59	18.24%	12.09%	―	―
0QVF		€11.58B	17.74	28.46%	3.40%	―	―
BNMDF		$12.64B	10.50	27.96%	7.23%	―	―