Buzzi SpA (BZU) AI Stock Analysis

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IT:BZU Dividends

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Buzzi SpA

(LSE:BZU)

74Outperform

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 Initiatives

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, while the US should follow.

Negative Factors

Carbon Footprint

The company has one of the highest carbon footprints in the sector, which significantly impacts its rating and valuation.

Cost Inflation

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

Market Challenges

The UAE remains a tough market with significant over-capacity being exported to the region and further afield, resulting in losses.

Buzzi SpA (BZU) vs. S&P 500 (SPY)

Market Cap

€8.85B

Dividend Yield1.25%

Average Volume (3M)512.38K

Price to Earnings (P/E)9.3

Beta (1Y)0.73

Revenue Growth-0.10%

EPS Growth-1.54%

CountryIT

Employees10,061

SectorIndustrials

Sector Strength82

IndustryConstruction Materials

Share Statistics

EPS (TTM)5.14

Shares Outstanding192,626,160

10 Day Avg. Volume332,784

30 Day Avg. Volume512,381

Financial Highlights & Ratios

PEG Ratio0.44

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€50.13

Price Target Upside4.83% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering8

Buzzi SpA Business Overview & Revenue Model

Company DescriptionBuzzi 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 MoneyBuzzi 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

Income Statement

Balance Sheet

Cash Flow

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
4.32B	4.00B	3.45B	3.22B	3.22B
	Gross Profit
1.88B	2.36B	2.09B	2.05B	2.03B
	EBIT
979.23M	754.06M	545.60M	752.43M	468.24M
	EBITDA
1.27B	775.65M	814.41M	817.49M	721.36M
	Net Income Common Stockholders
966.54M	458.79M	541.90M	560.25M	385.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12B	1.34B	1.21B	1.22B	838.90M
	Total Assets
7.62B	7.50B	6.92B	6.39B	6.40B
	Total Debt
665.47M	1.29B	1.22B	1.32B	1.37B
	Net Debt
-455.25M	-48.37M	11.72M	99.89M	535.57M
	Total Liabilities
1.98B	2.59B	2.55B	2.78B	2.71B
	Stockholders Equity
5.63B	4.91B	4.37B	3.60B	3.69B
Cash Flow		Free Cash Flow
520.79M	127.98M	377.21M	360.67M	318.39M
	Operating Cash Flow
818.80M	394.71M	591.66M	588.81M	575.48M
	Investing Cash Flow
-304.11M	-141.16M	-334.04M	-8.64M	-219.70M
	Financing Cash Flow
-704.43M	-152.40M	-331.57M	-133.63M	34.39M

Buzzi SpA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price47.82

Price Trends

50DMA

46.92

Positive

100DMA

43.14

Positive

200DMA

39.81

Positive

Market Momentum

MACD

0.54

Negative

RSI

56.40

Neutral

STOCH

72.10

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BZU, the sentiment is Positive. The current price of 47.82 is above the 20-day moving average (MA) of 45.41, above the 50-day MA of 46.92, and above the 200-day MA of 39.81, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 72.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BZU.

Buzzi SpA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BZU	74 Outperform	€8.85B	9.30	15.41%	1.25%	-0.10%	-1.54%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.10%	-10.59%

* Industrials Sector Average

Performance Comparison

IT:BZU

Buzzi SpA

47.82

10.13

26.89%

GB:0ONR

CIR SpA - Compagnie Industriali Riunite

0.61

0.04

7.02%

GB:0RP4

Italmobiliare SPA

24.15

-5.77

-19.28%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.