Buzzi SpA (BZU) AI Stock Analysis

• Market Cap: €8.29B
• Dividend Yield: 1.6%
• Average Volume (3M): 555.69K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.73
• Revenue Growth: 5.34%
• EPS Growth: -3.46%
• Country: IT
• Employees: 10,061
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Construction Materials
• EPS (TTM): 2.13
• Shares Outstanding: 192,626,160
• 10 Day Avg. Volume: 615,724
• 30 Day Avg. Volume: 555,689
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €46.44
• Price Target Upside: 7.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 62 Neutral
• Price Target: €43.00 ▼(-0.69% Downside)

Buzzi SpA's overall stock score is driven by its strong financial performance, characterized by robust profitability and a stable balance sheet. However, technical analysis indicates bearish momentum, which weighs down the score. The valuation suggests potential undervaluation, but the modest dividend yield limits its attractiveness to income-focused investors.

Positive Factors

Market Expansion

Buzzi announced the acquisition of a 37.6% stake in the Gulf Cement Company, representing an entry into a new market.

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, while the US should follow.

Negative Factors

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.

Tariffs Impact

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 SpA (BZU) is an Italian multinational company primarily engaged in the production and distribution of cement, ready-mix concrete, and aggregates. With a strong presence in the construction materials sector, Buzzi SpA operates several production plants across Europe and the United States. The company is known for its commitment to sustainability and innovation, offering a range of high-quality products that cater to both residential and commercial construction needs.

How the Company Makes Money

Buzzi SpA generates revenue primarily through the sale of cement, ready-mix concrete, and aggregates. The company's revenue model is largely based on direct sales to construction companies, contractors, and builders. Key revenue streams include the sale of bulk and packaged cement, as well as ready-mix concrete delivered to construction sites. Additionally, Buzzi SpA benefits from strategic partnerships with construction firms and participation in large infrastructure projects, which provide significant volume sales and contribute to consistent cash flow. The company's focus on sustainable practices and innovation also allows it to offer premium products that can command higher prices, 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

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
EBITDA	1.41B	1.27B	775.65M	814.41M	817.49M
Net Income	942.32M	966.54M	458.79M	541.90M	560.25M
Balance Sheet
Total Assets	8.69B	7.62B	7.50B	6.92B	6.39B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.12B	1.34B	1.21B	1.22B
Total Debt	607.57M	665.47M	1.29B	1.22B	1.32B
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: Negative
• Last Price: 43.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 43.3 is below the 20-day moving average (MA) of 43.83, below the 50-day MA of 45.65, and below the 200-day MA of 43.39, indicating a bearish trend. The MACD of -0.71 indicates Negative momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 74.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:BZU.

Buzzi SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAN	79 Outperform	€2.65B	8.28	10.20%	0.78%	1.26%	37.35%
WBD	78 Outperform	€4.16B	16.63	15.86%	1.99%	21.15%	17.26%
CMB	75 Outperform	€1.08B	24.18	20.04%	2.99%	3.42%	12.72%
CEM	73 Outperform	€2.12B	11.82	10.89%	2.07%	0.39%	-14.36%
ERG	67 Neutral	€2.95B	21.10	6.61%	4.99%	-3.04%	-39.96%
BZU	62 Neutral	€8.29B	8.97	14.45%	1.60%	5.34%	-3.46%
Sector *	44 Neutral	AU$1.54B	-7.44	-18.84%	4.47%	-3.00%	-40.37%