Brembo SPA (IT:BRE)
:BRE
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Brembo SPA
(BRE)
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Rating:60Neutral
Price Target:
€9.00
▲(4.65% Upside)
Action:DowngradedDate:04/21/26
The score is driven primarily by mixed financial performance: healthy margins and manageable leverage are offset by a steep 2025 revenue decline and weak/volatile free cash flow conversion. Technicals are neutral-to-weak with the stock still below key longer-term moving averages, while valuation is a relative positive due to a mid-teens P/E and a ~3.6% dividend yield.
Positive Factors
Strong margins
Sustained gross and operating margins near historical mid-teens/upper-teens levels indicate structural pricing power and cost control in core braking products. Durable margins support reinvestment, R&D and capital expenditure even if volumes fluctuate across vehicle cycles.
Negative Factors
Sharp revenue decline
A ~38% revenue drop is a structural concern: prolonged volume loss reduces operating leverage, can force fixed-cost absorption and degrades return on invested capital. If driven by platform timing or market share erosion, recovery may take multiple model cycles, pressuring sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins
Sustained gross and operating margins near historical mid-teens/upper-teens levels indicate structural pricing power and cost control in core braking products. Durable margins support reinvestment, R&D and capital expenditure even if volumes fluctuate across vehicle cycles.
Read all positive factors
Brembo SPA (BRE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€4.05B
Dividend Yield3.23%
Average Volume (3M)284.71K
Price to Earnings (P/E)14.3
Beta (1Y)0.93
Revenue GrowthN/A
EPS GrowthN/A
CountryIT
Employees14,348
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.15
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
€8.90Price Target Upside3.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.69
Revenue Forecast (FY)€3.72B
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 ...
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
62
Positive
Balance Sheet
70
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.70B | 3.86B | 3.88B | 3.64B | 2.79B |
| Gross Profit | 1.05B | 2.13B | 1.79B | 1.66B | 1.50B |
| EBITDA | 603.20M | 680.18M | 652.26M | 613.79M | 499.48M |
| Net Income | 209.30M | 262.60M | 305.04M | 292.83M | 215.54M |
Balance Sheet | |||||
| Total Assets | 4.79B | 4.63B | 4.17B | 3.85B | 3.68B |
| Cash, Cash Equivalents and Short-Term Investments | 656.70M | 867.61M | 510.06M | 415.88M | 557.46M |
| Total Debt | 1.38B | 1.24B | 989.81M | 948.73M | 971.97M |
| Total Liabilities | 2.46B | 2.30B | 2.07B | 1.90B | 1.89B |
| Stockholders Equity | 2.29B | 2.29B | 2.07B | 1.91B | 1.76B |
Cash Flow | |||||
| Free Cash Flow | 170.25M | 14.44M | 246.65M | 57.57M | 171.78M |
| Operating Cash Flow | 581.74M | 425.50M | 659.47M | 341.51M | 413.81M |
| Investing Cash Flow | -743.98M | -79.90M | -414.72M | -316.06M | -334.07M |
| Financing Cash Flow | -164.67M | -83.32M | -154.90M | -235.35M | -56.30M |
Brembo SPA Technical Analysis
Neutral
8.60
Price Trends
9.14
Negative
9.35
Negative
9.18
Negative
Market Momentum
-0.13
Negative
52.65
Neutral
62.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BRE, the sentiment is Neutral. The current price of 8.6 is above the 20-day moving average (MA) of 8.14, below the 50-day MA of 9.14, and below the 200-day MA of 9.18, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 62.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BRE.
Brembo SPA Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | €3.81B | 23.93 | 10.16% | 0.72% | -0.37% | -7.95% | |
64 Neutral | €5.85B | 11.72 | 8.81% | 4.33% | 0.04% | 5.96% | |
60 Neutral | €4.05B | 14.26 | ― | 3.23% | ― | ― | |
56 Neutral | €4.27B | 46.08 | 14.30% | ― | 12.19% | 177.33% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
42 Neutral | €572.80M | 18.96 | 8.39% | 4.42% | -11.72% | -49.21% |
* General Sector Average
IT:BRE
Brembo SPA
8.00
-0.06
-0.76%
IT:ELC
Elica S.p.A.
1.29
>-0.01
-0.70%
IT:FCT
Fincantieri S.p.A.
11.92
0.05
0.42%
IT:IP
Interpump Group SPA
35.78
4.44
14.16%
IT:PIA
Piaggio & C. SPA
1.60
-0.15
-8.81%
IT:PIRC
Pirelli & C. SpA
5.85
0.54
10.27%
Brembo SPA Corporate Events
Brembo Calls 2026 AGM to Approve 2025 Results, Renew Board and Seek Buyback Mandate
Mar 18, 2026
Brembo N.V. has convened its shareholders to an Annual General Meeting in Amsterdam on 29 April 2026 to review and approve the 2025 Annual Report, including the sustainability and remuneration reports, adopt the 2025 annual accounts, discuss divid...
Brembo Profit Falls on Weak Auto Markets as Racing and Sustainability Drive Strategic Shift
Mar 18, 2026
Brembo reported 2025 revenues of €3.70 billion, down 3.6% year on year (‑1.6% at constant exchange rates), with EBITDA slipping to €612 million and net profit falling 20.3% amid weakness in car, motorcycle and commercial vehicle ...
Brembo Beats 2025 Guidance with Resilient Margins Despite Auto Market Slowdown
Jan 29, 2026
Brembo reported preliminary 2025 consolidated results that came in slightly better than its own guidance, despite a challenging backdrop of sharply lower new vehicle production in Europe and North America, especially in the premium segment that is...
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.