Azimut Holding SPA (AZM) AI Stock Analysis

• Market Cap: €4.29B
• Dividend Yield: 5.83%
• Average Volume (3M): 691.89K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.20
• Revenue Growth: -7.01%
• EPS Growth: -8.74%
• Country: IT
• Employees: 872
• Sector: Financial
• Sector Strength: 71
• Industry: Asset Management
• EPS (TTM): 0.86
• Shares Outstanding: 143,254,500
• 10 Day Avg. Volume: 668,211
• 30 Day Avg. Volume: 691,891
• PEG Ratio: 0.19
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 2.29
• 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: €31.30
• Price Target Upside: 4.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: €33.00 ▲(9.89% Upside)

Azimut Holding SPA has strong financial performance with notable growth and profitability metrics, despite some cash flow concerns. The valuation is attractive due to a low P/E ratio and high dividend yield, appealing to value investors. Technical analysis indicates positive momentum, though the stock may face short-term corrections due to overbought signals.

Azimut Holding SPA Business Overview & Revenue Model

Company Description

Azimut Holding SPA (AZM) is a leading Italian independent asset management company that operates primarily in the financial services sector. The company provides a wide range of investment solutions, including mutual funds, portfolio management, and advisory services, catering to both institutional and retail clients. Azimut operates through various subsidiaries and has a significant presence in international markets, focusing on innovation and customer-centric financial products.

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 growth and profitability as shown in the income statement, with a high net profit margin and revenue growth. The balance sheet is stable with low leverage and high ROE, indicating financial stability. However, cash flow issues in 2024 suggest potential liquidity concerns, which slightly impact the overall financial performance score.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.47B	1.39B	1.16B	1.31B	923.88M
Gross Profit	623.16M	690.49M	860.39M	450.04M	590.12M	384.51M
EBITDA	815.13M	682.01M	691.29M	588.34M	782.46M	495.37M
Net Income	575.20M	576.16M	434.57M	406.46M	605.46M	381.69M
Balance Sheet
Total Assets	10.19B	10.23B	9.96B	9.51B	9.92B	8.47B
Cash, Cash Equivalents and Short-Term Investments	631.55M	395.28M	470.48M	314.01M	192.46M	79.17M
Total Debt	27.14M	27.82M	537.22M	539.67M	897.66M	948.50M
Total Liabilities	8.16B	8.29B	8.35B	8.04B	8.69B	7.59B
Stockholders Equity	2.02B	1.92B	1.55B	1.41B	1.18B	865.89M
Cash Flow
Free Cash Flow	-18.59M	-200.29M	419.31M	-153.09M	875.40M	253.22M
Operating Cash Flow	630.00K	-197.48M	468.85M	-104.84M	926.19M	288.31M
Investing Cash Flow	165.56M	295.12M	-432.76M	-189.66M	-335.86M	-79.47M
Financing Cash Flow	-256.06M	-237.39M	-297.49M	-175.75M	-255.94M	-267.16M

Azimut Holding SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 30.03 is above the 20-day moving average (MA) of 29.73, above the 50-day MA of 28.06, and above the 200-day MA of 24.46, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 82.97 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
ANIM	76 Outperform	€1.94B	7.37	16.75%	7.32%	21.14%	29.66%
BGN	75 Outperform	€5.87B	15.00	32.52%	5.31%	6.75%	0.27%
AZM	72 Outperform	€4.29B	8.73	29.25%	5.83%	-7.01%	-8.74%
FBK	71 Outperform	€11.45B	17.60	32.83%	3.99%	2.97%	4.64%
BMPS	70 Outperform	€10.15B	6.03	15.12%	10.67%	-21.18%	―
Sector *	67 Neutral	$17.22B	11.28	10.45%	3.94%	10.30%	1.07%
BMED	63 Neutral	$12.30B	10.73	28.26%	5.70%	12.46%	26.82%