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Brembo SPA
(BRE)
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Rating:66Neutral
Price Target:
€11.50
▲(15.46% Upside)
Action:Reiterated
Date:07/12/26
The score is driven primarily by solid but weakening financial performance: profitability and leverage remain acceptable, but sharply negative TTM revenue growth, margin compression versus prior years, rising debt, and uneven cash conversion limit the rating. Technicals are neutral with only modest trend support and slightly negative MACD. Valuation is a relative positive due to a reasonable P/E and a ~2.8% dividend yield.
Positive Factors
Improving cash generation
A rebound to ~€263M FCF and strong operating cash flow (~€644M TTM) improves liquidity and funds capital expenditures, dividends, or debt reduction without relying solely on external financing. Durable FCF supports reinvestment and cushions against auto-cycle volatility if sustained.
Negative Factors
Sharp TTM revenue decline
A ~-47% TTM revenue decline is a structural red flag: it strains fixed-cost absorption, reduces pricing/volume leverage, and undermines predictable cash flow. If persistent, falling volumes can force margin concessions, slower deleveraging, and hinder long-term investment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
A rebound to ~€263M FCF and strong operating cash flow (~€644M TTM) improves liquidity and funds capital expenditures, dividends, or debt reduction without relying solely on external financing. Durable FCF supports reinvestment and cushions against auto-cycle volatility if sustained.
Read all positive factors
Brembo SPA (BRE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€5.35B
Dividend Yield2.84%
Average Volume (3M)284.71K
Price to Earnings (P/E)15.5
Beta (1Y)1.06
Revenue GrowthN/A
EPS GrowthN/A
CountryIT
Employees14,348
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.68
Shares Outstanding333,922,240
10 Day Avg. Volume334,007
30 Day Avg. Volume284,713
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.30
Price to Sales (P/S)0.81
P/FCF Ratio17.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€10.90Price Target Upside9.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.72
Revenue Forecast (FY)€3.84B
Brembo SPA Business Overview & Revenue Model
Company Description
Brembo S.p.A. is an Italian company specializing in the engineering, production, and global distribution of advanced braking systems and related components. Their sophisticated solutions cater to a diverse array of vehicles, including passenger ca...
How the Company Makes Money
Brembo makes money primarily by designing, manufacturing, and selling braking systems and components to vehicle manufacturers (OEMs) and, to a lesser extent, to the aftermarket and performance segments. The core revenue stream comes from supplying...
Brembo SPA Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.69B | 3.70B | 3.86B | 3.88B | 3.64B | 2.79B |
| Gross Profit | 1.05B | 1.05B | 2.13B | 1.79B | 1.66B | 1.50B |
| EBITDA | 608.42M | 603.20M | 680.18M | 652.26M | 613.79M | 499.48M |
| Net Income | 215.01M | 209.30M | 262.60M | 305.04M | 292.83M | 215.54M |
Balance Sheet | ||||||
| Total Assets | 4.99B | 4.79B | 4.63B | 4.17B | 3.85B | 3.68B |
| Cash, Cash Equivalents and Short-Term Investments | 753.74M | 656.70M | 867.61M | 510.06M | 415.88M | 557.46M |
| Total Debt | 1.45B | 1.38B | 1.24B | 989.81M | 948.73M | 971.97M |
| Total Liabilities | 2.59B | 2.46B | 2.30B | 2.07B | 1.90B | 1.89B |
| Stockholders Equity | 2.41B | 2.29B | 2.29B | 2.07B | 1.91B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | 262.56M | 170.25M | 14.44M | 246.65M | 57.57M | 171.78M |
| Operating Cash Flow | 643.51M | 581.74M | 425.50M | 659.47M | 341.51M | 413.81M |
| Investing Cash Flow | -358.70M | -743.98M | -79.90M | -414.72M | -316.06M | -334.07M |
| Financing Cash Flow | -164.67M | -164.67M | -83.32M | -154.90M | -235.35M | -56.30M |
Brembo SPA Technical Analysis
Positive
9.96
Price Trends
10.73
Negative
9.66
Positive
9.51
Positive
Market Momentum
-0.17
Positive
38.30
Neutral
15.82
Positive
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 9.96 is below the 20-day moving average (MA) of 10.33, below the 50-day MA of 10.73, and above the 200-day MA of 9.51, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 15.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BRE.
Brembo SPA Peers Comparison
UnderperformOutperform
Sector (55)
IT:BRE
Brembo SPA
10.57
2.39
29.27%
IT:IP
Interpump Group SPA
34.74
-0.41
-1.17%
IT:SGF
Sogefi SPA
1.93
-0.74
-27.73%
IT:PIRC
Pirelli & C. SpA
6.60
1.14
20.99%
Brembo SPA Corporate Events
Brembo Forms Joint Venture with NBHX to Localize Sensify Braking in China
May 22, 2026
Brembo has entered a joint venture with China’s Ningbo Huaxiang Electronic (NBHX) to localize its Sensify intelligent braking platform for the Chinese market, marking a significant push into the world’s most dynamic automotive arena. T...
Brembo Delivers Solid Q1, Lifts 2026 Outlook and Advances Sensify Rollout
May 7, 2026
Brembo reported first‑quarter 2026 revenues of €937.4 million, down 2.1% year on year but up 1.9% at constant exchange rates, as growth in motorcycles and several key markets offset declines in cars, racing and China. Profitability imp...
Brembo’s Sensify Intelligent Braking Platform Enters Large-Scale Production
May 4, 2026
Brembo has begun large-scale series production of its Sensify ȑ intelligent braking platform for a major global vehicle manufacturer, where it will be fitted as standard on all vehicles in a specific program. The launch confirms the industria...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.