CIR SpA - Compagnie Industriali Riunite (CIR) AI Stock Analysis

• Market Cap: €555.13M
• Dividend Yield: N/A
• Average Volume (3M): 870.08K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.65
• Revenue Growth: -23.48%
• EPS Growth: N/A
• Country: IT
• Employees: 15,450
• Sector: Industrials
• Sector Strength: 87
• Industry: Auto - Parts
• EPS (TTM): 0.12
• Shares Outstanding: 916,059,940
• 10 Day Avg. Volume: 448,892
• 30 Day Avg. Volume: 870,079
• PEG Ratio: -0.50
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ―

CIR SpA's stock is rated at 71, reflecting its mixed financial performance with strong profitability but declining revenue. The technical analysis suggests positive momentum, while the low P/E ratio indicates an undervalued stock, offering potential upside. However, caution is advised due to the lack of earnings call insights and potential overbought technical indicators.

CIR SpA - Compagnie Industriali Riunite Business Overview & Revenue Model

Company Description

CIR SpA - Compagnie Industriali Riunite (CIR) is an Italian holding company with diversified interests primarily in the automotive, media, and healthcare sectors. Founded in 1976 and headquartered in Milan, CIR operates through its subsidiaries, offering a range of products and services including automotive components, healthcare services, and media content.

How the Company Makes Money

CIR SpA generates revenue through its three main sectors: automotive components, healthcare, and media. In the automotive sector, the company, through its subsidiary Sogefi, manufactures and supplies components like filtration systems, suspension parts, and air management products to automobile manufacturers. The healthcare sector revenue is primarily driven by its subsidiary KOS, which operates nursing homes, rehabilitation centers, and manages hospital facilities, thus earning from patient care services and healthcare management contracts. In the media sector, CIR owns GEDI Gruppo Editoriale, which publishes newspapers, magazines, and operates radio stations, generating income through advertising and subscription sales. Strategic partnerships and acquisitions further bolster CIR's revenue by expanding its market reach and service offerings.

CIR SpA - Compagnie Industriali Riunite Financial Statement Overview

Summary

CIR SpA demonstrates a mixed financial performance. The company shows strong gross margins and improved profitability, but faces challenges with declining revenue and cash flow constraints. The balance sheet remains stable with manageable leverage, yet the shrinking asset base could limit growth. Moving forward, enhancing revenue growth and improving cash conversion will be key.

Income Statement

CIR SpA shows a moderate performance in the income statement with a strong gross profit margin of 65.2% in 2024, indicating effective cost management. However, the net profit margin improved to 7.3% in 2024 from a much lower margin in 2023, reflecting a recovery. The revenue growth rate was negative at -23.5% from 2023 to 2024, which is concerning. EBIT and EBITDA margins were reasonably strong, particularly the EBITDA margin at 17.1%, suggesting effective earnings before non-cash charges.

Balance Sheet

CIR SpA's balance sheet reflects stability with a debt-to-equity ratio of 1.43 in 2024, indicating a manageable level of debt relative to equity. Return on equity improved significantly to 16.7% in 2024, showcasing effective management of equity to generate profits. The equity ratio stands at a healthy 28.7%, suggesting a solid capital structure. However, the overall asset base has been slightly shrinking over recent years.

Cash Flow

The cash flow statement shows a challenging environment with a decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio was strong at 1.37 in 2024, indicating good cash generation relative to net income. However, the free cash flow to net income ratio was 0.58, reflecting some constraints in converting net income into free cash flow, which may impact future investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.08B	1.82B	2.38B	2.24B	1.98B	1.83B
	Gross Profit
1.00B	1.19B	297.28M	954.49M	903.79M	841.34M
	EBIT
109.17M	100.02M	146.19M	81.71M	80.86M	25.83M
	EBITDA
249.69M	318.49M	254.16M	296.13M	330.61M	240.89M
	Net Income Common Stockholders
-12.98M	132.18M	32.79M	14.19M	47.03M	-39.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
727.84M	430.34M	395.30M	477.85M	559.10M	714.70M
	Total Assets
3.07B	2.76B	3.23B	3.31B	3.33B	3.47B
	Total Debt
1.28B	1.13B	1.44B	1.50B	1.57B	1.67B
	Net Debt
1.10B	1.00B	1.29B	1.28B	1.26B	1.25B
	Total Liabilities
1.87B	1.69B	2.20B	2.30B	2.35B	2.48B
	Stockholders Equity
863.25M	791.17M	753.62M	743.36M	740.39M	770.98M
Cash Flow		Free Cash Flow
68.29M	76.73M	111.57M	70.79M	94.94M	42.06M
	Operating Cash Flow
183.47M	180.89M	213.57M	206.13M	207.29M	170.85M
	Investing Cash Flow
-293.74M	-49.01M	-167.19M	-140.74M	-70.82M	-150.81M
	Financing Cash Flow
-306.48M	-502.94M	-136.50M	-157.16M	-257.41M	-142.22M

CIR SpA - Compagnie Industriali Riunite Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.59
• 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:CIR, the sentiment is Neutral. The current price of 0.59 is below the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.58, and above the 200-day MA of 0.59, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 37.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:CIR.

CIR SpA - Compagnie Industriali Riunite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIR	71 Outperform	€555.13M	4.80	-1.45%	―	-23.48%	―
FILA	70 Neutral	€504.97M	6.48	12.77%	5.36%	-15.75%	-57.23%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%