Azimut Holding SPA (AZM) AI Stock Analysis

• Market Cap: €4.74B
• Dividend Yield: 4.91%
• Average Volume (3M): 599.98K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.22
• Revenue Growth: -7.63%
• EPS Growth: -1.84%
• Country: IT
• Employees: 872
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.03
• Shares Outstanding: 143,254,500
• 10 Day Avg. Volume: 654,151
• 30 Day Avg. Volume: 599,980
• PEG Ratio: 0.18
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 2.49
• P/FCF Ratio: -16.83
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €36.00 ▲(0.95% Upside)

Azimut Holding SPA's overall stock score is driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, which make it attractive for value and income investors. Financial performance is solid with high profitability and low leverage, though concerns about declining revenue and negative cash flows temper the outlook. Technical indicators suggest a neutral trend with some bullish momentum, but caution is advised due to potential overbought conditions.

Positive Factors

Profitability

High profitability margins indicate effective cost management and a strong ability to generate profits, supporting long-term financial health.

Balance Sheet Strength

A low debt-to-equity ratio suggests low leverage risk, providing financial flexibility and resilience against economic downturns.

Cash Generation

Positive cash generation relative to net income enhances liquidity and supports reinvestment opportunities, crucial for sustainable growth.

Negative Factors

Revenue Growth Decline

Declining revenue growth can hinder future profitability and market expansion, posing challenges to maintaining competitive market positioning.

Negative Cash Flows

Negative cash flows may indicate liquidity issues, limiting the company's ability to fund operations and invest in growth initiatives.

Earnings Decline

A decline in earnings per share growth reflects potential challenges in maintaining profitability and shareholder value, affecting investor confidence.

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 generates revenue through multiple streams, primarily from management fees charged on the assets it manages. These fees are typically a percentage of the total assets under management (AUM) and vary based on the specific investment products and services offered. Additionally, the company earns performance fees when its investment funds exceed predetermined benchmarks, aligning its interests with those of its clients. Azimut also benefits from commissions on the sale of financial products and advisory fees from financial planning services. Strategic partnerships with financial institutions and distribution networks further enhance its reach and revenue potential. The company's ability to attract and retain clients, along with its diversification of products, plays a crucial role in sustaining its earnings.

Azimut Holding SPA Financial Statement Overview

Summary

Azimut Holding SPA demonstrates strong profitability and financial stability with low leverage and high margins. However, the decline in revenue growth and negative cash flows present potential risks. The company should focus on reversing the revenue decline and improving cash flow generation to sustain its financial health.

Income Statement

Azimut Holding SPA shows strong profitability with a high net profit margin of 37.68% in TTM, although revenue has slightly declined by 2.52%. The gross profit margin remains robust at 66.08%, indicating effective cost management. However, the declining revenue growth rate is a concern that could impact future profitability.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.013, reflecting strong financial stability and low leverage risk. The return on equity is healthy at 26.35%, indicating efficient use of equity to generate profits. The equity ratio is solid, suggesting a strong capital structure.

Cash Flow

Azimut Holding SPA faces challenges with negative operating and free cash flows in TTM, although free cash flow has improved significantly. The free cash flow to net income ratio is positive, indicating that the company is generating cash relative to its net income, but the negative operating cash flow coverage ratio highlights potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.33B	1.39B	1.32B	1.31B	1.22B
Gross Profit	825.74M	855.16M	860.39M	450.04M	590.12M	740.23M
EBITDA	681.27M	842.56M	691.29M	588.34M	782.46M	495.37M
Net Income	493.32M	576.16M	434.57M	406.46M	605.46M	381.69M
Balance Sheet
Total Assets	9.99B	10.23B	9.96B	9.51B	9.92B	8.47B
Cash, Cash Equivalents and Short-Term Investments	425.64M	395.28M	480.47M	298.84M	180.33M	358.60M
Total Debt	23.27M	27.82M	537.22M	539.67M	897.66M	893.37M
Total Liabilities	8.18B	8.29B	8.35B	8.04B	8.69B	7.59B
Stockholders Equity	1.79B	1.92B	1.55B	1.42B	1.18B	865.89M
Cash Flow
Free Cash Flow	-267.18M	-200.29M	458.69M	-153.09M	875.40M	253.22M
Operating Cash Flow	-264.53M	-197.48M	468.85M	-104.84M	926.19M	288.31M
Investing Cash Flow	166.94M	295.12M	-73.20M	-189.66M	-335.86M	-79.47M
Financing Cash Flow	-398.23M	-237.39M	-297.49M	-175.75M	-255.94M	-267.16M

Azimut Holding SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.66
• 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 35.66 is above the 20-day moving average (MA) of 34.23, above the 50-day MA of 33.17, and above the 200-day MA of 28.14, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 94.71 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
BGN	78 Outperform	€5.65B	14.44	31.25%	5.00%	4.46%	-0.62%
ANIM	74 Outperform	€1.92B	7.34	15.75%	7.40%	14.56%	12.45%
AZM	73 Outperform	€4.74B	9.61	28.43%	4.91%	-7.63%	-1.84%
BMPS	71 Outperform	€23.09B	5.69	15.13%	10.55%	-5.31%	-35.03%
FBK	71 Outperform	€12.36B	19.01	32.83%	3.51%	2.97%	4.64%
BMED	71 Outperform	$13.36B	11.41	26.99%	6.67%	7.88%	27.11%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%