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Buzzi SpA (IT:BZU)
:BZU
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Buzzi SpA (BZU) AI Stock Analysis

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IT:BZU

Buzzi SpA

(LSE:BZU)

Rating:74Outperform
Price Target:
€52.00
▲(13.89%Upside)
Buzzi SpA delivers a strong overall stock score driven by robust financial performance and attractive valuation. While technical analysis shows mixed signals, the company's solid profitability and undervaluation offer a compelling case for investors. Short-term technical weakness may present an entry opportunity for long-term growth.
Positive Factors
Acquisitions and Market Entry
Buzzi announced the acquisition of a 37.6% stake in the Gulf Cement Company, representing an entry into a new market.
Financial Performance
Buzzi published its FY-24 prelims, pointing to accelerating growth in Q4-24, while beating consensus expectations.
Valuation and Market Recovery
The valuation on the basis of the European recovery scenario remains very attractive, while the US should follow.
Negative Factors
Cost Pressures
Energy cost inflation and other cost inflation may put some pressure on margins.
Earnings and Return on Investment
The deal is earnings dilutive and shows a negative implied ROIC, raising questions on how the group can improve the extremely low margin.
Market Challenges and Tariffs
The outlook in the US and Mexico remains more challenged, also given the impact of tariffs.

Buzzi SpA (BZU) vs. iShares MSCI Italy ETF (EWI)

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
Buzzi SpA demonstrates strong financial health with robust profitability and stable capital structure. The company excels in revenue growth, profitability margins, and maintains a healthy balance sheet with low leverage. Cash flow generation is solid, though there is room for improvement in asset utilization and free cash flow growth.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.31B4.32B4.00B3.45B3.22B
Gross Profit2.82B1.88B2.36B2.09B2.05B
EBITDA1.41B1.27B775.65M814.41M817.49M
Net Income942.32M966.54M458.79M541.90M560.25M
Balance Sheet
Total Assets8.69B7.62B7.50B6.92B6.39B
Cash, Cash Equivalents and Short-Term Investments1.41B1.12B1.34B1.21B1.22B
Total Debt607.57M665.47M1.29B1.22B1.32B
Total Liabilities2.08B1.98B2.59B2.55B2.78B
Stockholders Equity6.60B5.63B4.91B4.37B3.60B
Cash Flow
Free Cash Flow484.20M520.79M127.98M377.21M360.67M
Operating Cash Flow932.62M818.80M394.71M591.66M588.81M
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
Negative
Last Price45.66
Price Trends
50DMA
46.66
Negative
100DMA
46.70
Negative
200DMA
42.61
Positive
Market Momentum
MACD
-0.17
Positive
RSI
42.92
Neutral
STOCH
14.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BZU, the sentiment is Negative. The current price of 45.66 is below the 20-day moving average (MA) of 47.72, below the 50-day MA of 46.66, and above the 200-day MA of 42.61, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 42.92 is Neutral, neither overbought nor oversold. The STOCH value of 14.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:BZU.

Buzzi SpA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€8.45B8.8815.41%1.53%-0.10%-1.54%
65
Neutral
$11.18B15.795.49%1.92%3.14%-24.90%
€981.08M22.3820.04%3.16%
€2.04B10.0912.52%2.14%
€2.44B7.5010.20%0.83%
€2.90B15.048.74%5.20%
€3.74B15.3111.69%2.14%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:BZU
Buzzi SpA
45.66
10.28
29.06%
GB:0DXU
Cembre SPA
59.60
23.42
64.73%
GB:0HY2
Cementir Holding S.p.A.
13.08
3.47
36.11%
GB:0APM
Danieli & C.Officine Meccaniche SPA
37.35
2.78
8.04%
GB:0MHC
Erg SPA
19.24
-4.00
-17.21%
GB:0BJP
Webuild SpA
3.77
1.38
57.74%
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.Date of analysis: Jul 18, 2025