Brembo SPA (BRE) AI Stock Analysis

• Market Cap: €4.24B
• Dividend Yield: 3.55%
• Average Volume (3M): 601.20K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.84
• Revenue Growth: -0.22%
• EPS Growth: -12.64%
• Country: IT
• Employees: 14,348
• Sector: Industrials
• Sector Strength: 77
• Industry: Auto - Parts
• EPS (TTM): 0.20
• Shares Outstanding: 333,922,240
• 10 Day Avg. Volume: 355,262
• 30 Day Avg. Volume: 601,202
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €9.67
• Price Target Upside: 17.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Brembo SPA presents a mixed investment case. Financially, the company is strong with consistent revenue growth and a stable balance sheet. However, the technical analysis indicates bearish trends, which may concern short-term investors. The stock's attractive valuation, with a low P/E ratio and solid dividend yield, suggests potential for long-term value. Addressing cash flow challenges and reversing technical indicators could improve the overall outlook.

Brembo SPA Business Overview & Revenue Model

Company Description

Brembo S.p.A., together with its subsidiaries, designs, develops, produces, and sells braking systems and components for cars, motorbikes, and industrial vehicles and machinery. The company operates through Discs – Systems – Motorbikes; and After market – Performance Group segments. The company offers brake discs, calipers, wheel-side modules, and braking systems, as well as integrated engineering services for light commercial and heavy industrial vehicles, motorbikes, and racing competitions. It also provides brake master cylinders, light-alloy wheels, brake hoses, braking systems pads, drums, brake shoes, drum-brake kits, and hydraulic components. In addition, the company offers braking systems for race cars and motorbikes under the Brembo Racing brand; braking systems and clutches for race cars under the AP Racing brand name; and magnesium and aluminum wheels for racing motorbikes under the Marchesini brand. It operates in 15 countries. The company was founded in 1961 and is headquartered in Stezzano, Italy. Brembo S.p.A. is a subsidiary of Nuova FourB S.r.l.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
3.88B	3.64B	2.79B	2.22B	2.60B
	Gross Profit
1.79B	1.91B	1.50B	1.21B	1.41B
	EBIT
414.07M	382.84M	287.98M	181.13M	318.54M
	EBITDA
652.26M	613.79M	499.48M	367.80M	504.34M
	Net Income Common Stockholders
305.04M	292.83M	215.54M	136.53M	231.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
510.06M	415.88M	557.46M	552.28M	304.79M
	Total Assets
4.17B	3.85B	3.68B	3.17B	2.74B
	Total Debt
989.81M	948.73M	971.97M	934.33M	651.82M
	Net Debt
479.75M	532.85M	414.51M	383.05M	347.03M
	Total Liabilities
2.07B	1.90B	1.89B	1.69B	1.35B
	Stockholders Equity
2.07B	1.91B	1.76B	1.45B	1.36B
Cash Flow		Free Cash Flow
246.65M	57.57M	171.78M	143.08M	54.85M
	Operating Cash Flow
659.47M	341.51M	413.81M	333.40M	306.62M
	Investing Cash Flow
-414.72M	-316.06M	-334.07M	-368.98M	-245.31M
	Financing Cash Flow
-154.90M	-235.35M	-56.30M	313.31M	-88.55M

Brembo SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BRE, the sentiment is Negative. The current price of 8.22 is above the 20-day moving average (MA) of 7.82, below the 50-day MA of 8.60, and below the 200-day MA of 9.33, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 76.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:BRE.

Brembo SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRE	68 Neutral	€4.24B	10.07	12.04%	3.55%	-0.22%	-12.64%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%

Brembo SPA Corporate Events

Brembo Maintains Revenue Stability and Expands Global Presence in 2024

Brembo reported stable revenue for 2024 at €3,840.6 million, with a slight increase in renewable energy usage. Despite challenges in the automotive sector, Brembo maintained its market position through strategic investments, including the acquisition of Öhlins and a partnership with Michelin. The company also expanded its global presence with a new site in Thailand, showcasing its commitment to innovation and long-term growth.