Buzzi SpA (BZU) AI Stock Analysis

• Market Cap: €8.45B
• Dividend Yield: 1.53%
• Average Volume (3M): 364.02K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.70
• Revenue Growth: -0.10%
• EPS Growth: -1.54%
• Country: IT
• Employees: 10,061
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction Materials
• EPS (TTM): 5.14
• Shares Outstanding: 192,626,160
• 10 Day Avg. Volume: 414,241
• 30 Day Avg. Volume: 364,017
• PEG Ratio: -0.57
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.21
• 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: €50.13
• Price Target Upside: 9.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: ―

Buzzi SpA's overall score reflects its strong financial performance and undervalued stock price. Despite a stable financial footing and attractive valuation, technical indicators suggest cautious market momentum. The company's low beta also indicates lower volatility, making it a potentially stable investment in the construction materials sector.

Positive Factors

Financial Performance

Buzzi published its FY-24 prelims, pointing to accelerating growth in Q4-24, while beating consensus expectations.

Strategic Acquisition

Buzzi buys into UAE taking an important stake in the Gulf Cement Company, while extending a full takeover offer to the remaining shareholders of this listed company.

Valuation

The valuation on the basis of the European recovery scenario remains very attractive.

Negative Factors

Acquisition Concerns

The deal is earnings dilutive and shows a negative implied ROIC, raising questions on how the group can improve the extremely low margin.

Cost Pressures

Energy cost inflation and other cost inflation may put some pressure on margins.

Market Challenges

The outlook in the US and Mexico remains more challenged, also given the impact of tariffs.

Buzzi SpA Business Overview & Revenue Model

Company Description

Buzzi Unicem S.p.A., together with its subsidiaries, manufactures, distributes, and sells cement, ready-mix concrete, and aggregates. It also offers special binders, safety sheets, and clinkers, as well as construction hydraulic binders for making plasters and masonry works on site. The company has operations in Italy, the United States, Germany, Luxembourg, the Netherlands, Poland, the Czech Republic, Slovakia, Ukraine, Russia, Mexico, and Brazil. Buzzi Unicem S.p.A. was founded in 1872 and is headquartered in Casale Monferrato, Italy.

How the Company Makes Money

Buzzi SpA generates revenue primarily through the sale of its core products: cement, ready-mix concrete, and aggregates. The company operates an extensive network of production plants and distribution facilities to efficiently meet customer demands across various regions. Key revenue streams include direct sales to construction companies, wholesalers, and retailers engaged in building and infrastructure projects. Additionally, Buzzi SpA benefits from strategic partnerships and long-term contracts with major construction firms and government entities, which help stabilize and grow its income base. The company also invests in research and development to improve product quality and reduce production costs, further enhancing its profitability.

Buzzi SpA Financial Statement Overview

Summary

Buzzi SpA exhibits strong financial health with robust profitability and a stable capital structure. The company has a solid balance sheet with low leverage and steady cash flow generation, though there is room for improvement in asset utilization and cash flow growth.

Income Statement

Buzzi SpA demonstrates strong profitability with a consistent gross profit margin and robust net profit margin. The company has managed to sustain positive revenue growth over the years, reflecting its strong market position. EBIT and EBITDA margins also indicate operational efficiency, making the company a solid performer in its industry.

Balance Sheet

Buzzi SpA maintains a healthy balance sheet with a low debt-to-equity ratio, signifying prudent leverage and financial stability. The return on equity is commendable, highlighting efficient use of shareholder funds. The equity ratio suggests a solid capital structure, though there is room for improvement in asset utilization.

Cash Flow

The company's cash flow statement reveals a positive free cash flow trend, which is crucial for funding operations and investments. The operating cash flow to net income ratio indicates strong cash generation relative to earnings, though free cash flow growth has been moderate. Overall, cash management is sound, supporting the company's growth initiatives.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.31B	4.32B	4.00B	3.45B	3.22B
	Gross Profit
2.82B	1.88B	2.36B	2.09B	2.05B
	EBIT
1.00B	979.23M	754.06M	545.60M	752.43M
	EBITDA
1.41B	1.27B	775.65M	814.41M	817.49M
	Net Income Common Stockholders
942.32M	966.54M	458.79M	541.90M	560.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.41B	1.12B	1.34B	1.21B	1.22B
	Total Assets
8.69B	7.62B	7.50B	6.92B	6.39B
	Total Debt
607.57M	665.47M	1.29B	1.22B	1.32B
	Net Debt
-802.87M	-455.25M	-48.37M	11.72M	99.89M
	Total Liabilities
2.08B	1.98B	2.59B	2.55B	2.78B
	Stockholders Equity
6.60B	5.63B	4.91B	4.37B	3.60B
Cash Flow		Free Cash Flow
484.20M	520.79M	127.98M	377.21M	360.67M
	Operating Cash Flow
932.62M	818.80M	394.71M	591.66M	588.81M
	Investing Cash Flow
-240.34M	-304.11M	-141.16M	-334.04M	-8.64M
	Financing Cash Flow
-410.10M	-704.43M	-152.40M	-331.57M	-133.63M

Buzzi SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 45.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BZU, the sentiment is Neutral. The current price of 45.64 is below the 20-day moving average (MA) of 46.58, above the 50-day MA of 45.39, and above the 200-day MA of 40.69, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BZU.

Buzzi SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BZU	74 Outperform	€8.45B	8.88	15.41%	1.53%	-0.10%	-1.54%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
0DXU		€909.09M	19.83	20.04%	3.56%	―	―
0HY2		€2.21B	10.78	12.52%	2.00%	―	―
0APM		€2.27B	6.91	10.20%	0.90%	―	―
0MHC		€2.84B	14.87	8.74%	5.26%	―	―
0BJP		€3.59B	18.19	11.69%	2.26%	―	―