Comer Industries SpA (COM) AI Stock Analysis

• Market Cap: €1.06B
• Dividend Yield: 2.16%
• Average Volume (3M): 8.23K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.48
• Revenue Growth: -20.36%
• EPS Growth: -23.31%
• Country: IT
• Employees: 2,872
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.09
• Shares Outstanding: 28,678,090
• 10 Day Avg. Volume: 18,461
• 30 Day Avg. Volume: 8,232
• PEG Ratio: -0.46
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 18.21
• 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: €40.50
• Price Target Upside: 9.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: €40.00 ▲(8.11% Upside)

Comer Industries SpA's overall stock score is driven by strong financial performance and stable cash flow management. Technical analysis indicates short-term bullish momentum, but potential overbought conditions warrant caution. Valuation metrics suggest the stock is fairly valued, with a moderate P/E ratio and a reasonable dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Profit Margins

High profit margins indicate effective cost management and pricing power, contributing to long-term financial stability and competitiveness.

Efficient Cash Flow Management

Strong cash flow management ensures liquidity and supports reinvestment and debt management, enhancing financial resilience over time.

Moderate Leverage

Moderate leverage indicates prudent financial management, reducing risk and providing flexibility for future growth opportunities.

Negative Factors

Declining Revenue Growth

Negative revenue growth could signal challenges in market demand or competitive pressures, potentially impacting future profitability if not addressed.

Decreased Free Cash Flow Growth

A decrease in free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, affecting long-term growth.

High Total Liabilities

High liabilities compared to assets can pose financial risks, potentially impacting the company's ability to invest in growth or weather economic downturns.

Comer Industries SpA Business Overview & Revenue Model

Company Description

Comer Industries S.p.A. designs and produces engineering systems and mechatronic solutions for power transmission applications in Italy and internationally. The company offers gearboxes, planetary drives, axles, PTO drive shafts and clutches, tractor attachment systems, and drive shafts, as well as e-mobility products. It also provides land preparation products; soil tillage products; crop treatment products; hay and forage implement products; headers for harvesting; combine harvesting and forage harvesting products; and forage mixing and distribution machines, as well as tractors. The company was founded in 1970 and is headquartered in Reggiolo, Italy. Comer Industries S.p.A. is a subsidiary of Eagles Oak Srl.

How the Company Makes Money

Comer Industries generates revenue primarily through the sale of its power transmission products and solutions to industrial machinery manufacturers. The company operates a business-to-business (B2B) model, supplying components that are integral to the functionality and efficiency of agricultural and construction equipment. Key revenue streams include direct sales of gearboxes, driveshafts, and electronic systems to OEMs (Original Equipment Manufacturers) and through an established network of distributors. Additionally, Comer Industries benefits from long-term partnerships with leading machinery manufacturers to secure consistent demand for its products. The company continuously invests in innovation and technology to maintain its competitive edge and adapt to evolving industry needs, which significantly contributes to its financial success.

Comer Industries SpA Financial Statement Overview

Summary

Comer Industries SpA presents strong profitability with robust gross and net profit margins. Effective cost management is evident, but challenges include negative revenue growth and a decrease in free cash flow growth rate. The balance sheet is solid with manageable leverage.

Income Statement

Comer Industries SpA has shown robust financial performance with strong gross profit and net profit margins. The company achieved a gross profit margin of approximately 44.44% for 2023 and a net profit margin of 7.68%. Despite a decline in total revenue from 2022 to 2023, the company maintained solid profitability, indicating effective cost management. However, the revenue growth has been negative, which may pose a challenge if not addressed.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.24 for 2023, indicating a balanced approach to debt management. Return on Equity (ROE) remains strong at 18.53%, showcasing efficient use of equity to generate profits. The equity ratio of 42.46% underscores a stable financial position, but the slightly high total liabilities relative to assets could be an area to monitor for potential risk.

Cash Flow

Comer Industries SpA demonstrates strong cash flow management. The operating cash flow to net income ratio is approximately 2.17 for 2023, indicating healthy cash generation relative to reported income. The free cash flow has decreased compared to the previous year, reflecting increased capital expenditure, yet remains positive, allowing for reinvestment and debt management. Overall, cash flow stability is evident, though the decrease in free cash flow growth rate warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	860.78M	942.37M	1.22B	1.24B	601.00M	397.23M
Gross Profit	274.20M	418.88M	557.50M	536.90M	221.85M	148.95M
EBITDA	135.25M	163.92M	205.41M	184.28M	77.08M	48.02M
Net Income	59.62M	67.22M	94.03M	90.72M	39.43M	21.77M
Balance Sheet
Total Assets	1.12B	1.12B	1.20B	1.25B	1.16B	306.46M
Cash, Cash Equivalents and Short-Term Investments	92.74M	102.24M	68.33M	151.33M	85.74M	38.18M
Total Debt	127.34M	120.63M	163.16M	300.04M	263.28M	35.53M
Total Liabilities	586.48M	579.16M	687.42M	805.30M	809.90M	163.09M
Stockholders Equity	532.60M	544.17M	507.59M	443.88M	345.61M	143.38M
Cash Flow
Free Cash Flow	72.65M	48.91M	165.01M	60.26M	46.56M	36.56M
Operating Cash Flow	111.13M	110.38M	203.82M	94.14M	67.50M	49.69M
Investing Cash Flow	-31.78M	-49.91M	-90.79M	-34.12M	-211.45M	-11.39M
Financing Cash Flow	-64.25M	-39.30M	-196.03M	5.57M	191.52M	-16.26M

Comer Industries SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:COM, the sentiment is Positive. The current price of 37 is above the 20-day moving average (MA) of 36.05, above the 50-day MA of 36.18, and above the 200-day MA of 31.17, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 60.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:COM.

Comer Industries SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DANR	―	€3.02B	12.35	―	0.98%	0.68%	-0.43%
DAN	―	€3.03B	17.82	―	0.65%	0.68%	-0.43%
IP	―	€4.37B	20.42	10.96%	0.77%	-4.26%	-9.37%
COM	―	€1.06B	17.77	―	2.16%	-20.36%	-23.31%
CRL	―	€2.54B	39.58	14.83%	0.72%	-2.99%	1.31%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BSS	―	€205.52M	-28.48	-2.86%	0.54%	-10.59%	-132.80%