Brembo SPA (BRE) AI Stock Analysis

• Market Cap: €3.96B
• Dividend Yield: 3.34%
• Average Volume (3M): 483.18K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.80
• Revenue Growth: -0.22%
• EPS Growth: -12.64%
• Country: IT
• Employees: 14,348
• Sector: Industrials
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 0.16
• Shares Outstanding: 333,922,240
• 10 Day Avg. Volume: 362,387
• 30 Day Avg. Volume: 483,184
• PEG Ratio: 0.34
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.79
• 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: €9.25
• Price Target Upside: 13.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: €9.00 ▲(10.84%Upside)

Brembo SPA's strong valuation and financial performance are key strengths, showing substantial revenue growth and operational efficiency. However, technical indicators suggest a neutral market position, with the stock lacking strong momentum. The balanced financial structure and attractive valuation make it a compelling option in the auto parts industry.

Brembo SPA Business Overview & Revenue Model

Company Description

Brembo S.p.A. (BRE) is an Italian company specializing in the design, development, and manufacture of high-performance braking systems and components. Serving sectors such as automotive, motorcycle, and motorsport, Brembo is renowned for its innovative solutions and superior quality. The company's core products include brake discs, calipers, and complete braking systems, which are used by a variety of prestigious car and motorcycle manufacturers worldwide.

How the Company Makes Money

Brembo S.p.A. generates revenue primarily through the sale of its advanced braking systems and components to original equipment manufacturers (OEMs) in the automotive and motorcycle industries. The company capitalizes on its reputation for high-quality and high-performance products, catering to both high-end and standard vehicle markets. Key revenue streams include the sale of brake discs, calipers, and entire braking systems. Additionally, Brembo benefits from significant partnerships with premium automotive brands, which further enhance its market position and revenue potential. The company also engages in motorsport collaborations, providing braking systems for racing teams, which not only contributes to revenue but enhances its brand visibility and technical prestige.

Brembo SPA Financial Statement Overview

Summary

Brembo SPA demonstrates strong financial health with consistent revenue growth and efficient operations. The balance sheet reflects moderate leverage and a solid equity base, though the cash flow statement shows pressure from capital expenditures affecting free cash flow.

Income Statement

Brembo SPA has shown consistent revenue growth over the years with a notable increase in gross profit margin, now at 55.26% for 2024. However, the net profit margin has decreased slightly to 6.81% from the previous year, indicating increased expenses or lower pricing power. Despite this, the company maintains a strong EBITDA margin of 17.63%, reflecting solid operational efficiency.

Balance Sheet

The balance sheet of Brembo SPA reflects a stable financial position with an equity ratio of 49.56%, indicating a well-capitalized structure. The debt-to-equity ratio stands at 0.54, demonstrating moderate leverage. However, the return on equity has slightly decreased to 11.44%, suggesting room for improvement in generating returns on shareholder investments.

Cash Flow

Cash flow analysis reveals challenges in free cash flow, which has significantly decreased. The operating cash flow to net income ratio is 1.62, indicating robust cash generation from operations. However, the free cash flow to net income ratio is only 0.05, reflecting high capital expenditures impacting free cash flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.86B	3.88B	3.64B	2.79B	2.22B
Gross Profit	2.13B	1.79B	1.91B	1.50B	1.21B
EBITDA	680.18M	652.26M	613.79M	499.48M	367.80M
Net Income	262.60M	305.04M	292.83M	215.54M	136.53M
Balance Sheet
Total Assets	4.63B	4.17B	3.85B	3.68B	3.17B
Cash, Cash Equivalents and Short-Term Investments	867.61M	510.06M	415.88M	557.46M	552.28M
Total Debt	1.24B	989.81M	948.73M	971.97M	934.33M
Total Liabilities	2.30B	2.07B	1.90B	1.89B	1.69B
Stockholders Equity	2.29B	2.07B	1.91B	1.76B	1.45B
Cash Flow
Free Cash Flow	14.44M	246.65M	57.57M	171.78M	143.08M
Operating Cash Flow	425.50M	659.47M	341.51M	413.81M	333.40M
Investing Cash Flow	-79.90M	-414.72M	-316.06M	-334.07M	-368.98M
Financing Cash Flow	-83.32M	-154.90M	-235.35M	-56.30M	313.31M

Brembo SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BRE, the sentiment is Positive. The current price of 8.12 is above the 20-day moving average (MA) of 7.78, above the 50-day MA of 7.90, and below the 200-day MA of 8.65, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 88.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BRE.

Brembo SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RACE	82 Outperform	$96.37B	46.20	45.95%	0.64%	12.37%	22.03%
BRE	74 Outperform	€3.96B	9.40	12.04%	3.34%	-0.22%	-12.64%
PIRC	74 Outperform	€5.95B	12.06	8.52%	4.32%	2.87%	6.90%
FILA	70 Neutral	€483.54M	6.41	12.77%	7.26%	-15.75%	-57.23%
Sector *	68 Neutral	€2.80B	16.30	9.89%	2.84%	-0.64%	-28.31%

Brembo SPA Corporate Events

Brembo Faces Revenue Decline Amidst Market Challenges

Brembo reported a 4.7% decline in Q1 2025 revenues compared to the same period in 2024, reflecting challenges in the automotive sector due to declining demand and geopolitical uncertainties. Despite these difficulties, Brembo’s acquisition of Öhlins and its robust business model helped mitigate some impacts. The racing segment saw significant growth, while other segments experienced declines. The company remains committed to long-term investments to navigate the current industry crisis.