Azimut Holding SPA (AZM) AI Stock Analysis

• Market Cap: €3.65B
• Dividend Yield: 6.8%
• Average Volume (3M): 947.31K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 1.21
• Revenue Growth: -3.05%
• EPS Growth: 26.73%
• Country: IT
• Employees: 872
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 0.60
• Shares Outstanding: 145,330,640
• 10 Day Avg. Volume: 955,704
• 30 Day Avg. Volume: 947,307
• PEG Ratio: 0.78
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 71.65
• 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: €25.85
• Price Target Upside: -0.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 83 Outperform
• Price Target: €30.00 ▲(15.21%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 robust growth and profitability, with a strong income statement and solid balance sheet. Despite high return on equity and low leverage, the company faces liquidity challenges due to negative cash flow trends in 2024.

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
	EBIT
653.18M	681.66M	261.53M	348.93M	147.04M
	EBITDA
682.01M	691.29M	588.34M	782.46M	495.37M
	Net Income Common Stockholders
576.16M	434.57M	406.46M	605.46M	381.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
413.94M	470.48M	314.01M	192.46M	79.17M
	Total Assets
10.23B	9.96B	9.51B	9.92B	8.47B
	Total Debt
27.82M	537.22M	539.67M	897.66M	948.50M
	Net Debt
-366.98M	72.65M	241.53M	717.61M	948.47M
	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: 26.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 26.04 is above the 20-day moving average (MA) of 25.71, above the 50-day MA of 23.73, and above the 200-day MA of 22.81, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 66.03 is Neutral, neither overbought nor oversold. The STOCH value of 36.26 is Neutral, 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	€3.65B	6.41	31.12%	6.80%	-3.05%	26.73%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.31%	-7.69%
0QTI		€1.87B	7.55	16.42%	7.56%	―	―
0DQZ		€5.96B	14.23	30.35%	5.32%	―	―
0RK6		€8.87B	4.69	18.24%	12.21%	―	―
0QVF		€11.61B	17.95	28.46%	3.90%	―	―
BNMDF		$12.35B	10.23	27.96%	6.34%	―	―