Comer Industries SpA (COM) AI Stock Analysis

• Market Cap: €1.34B
• Dividend Yield: 1.8%
• Average Volume (3M): 5.74K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.36
• Revenue Growth: -20.36%
• EPS Growth: -23.31%
• Country: IT
• Employees: 2,872
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 28,678,090
• 10 Day Avg. Volume: 6,981
• 30 Day Avg. Volume: 5,737
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €53.00 ▲(43.24% Upside)

Comer Industries SpA demonstrates strong financial performance with effective cost management and stable cash flow, which are the most significant factors contributing to the score. The technical analysis indicates bullish momentum, although caution is advised due to overbought signals. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield, supporting the stock's overall attractiveness.

Positive Factors

Cash generation ability

An OCF/net income ratio of ~2.17 indicates strong cash conversion and recurring operating cash generation. This durable cash flow supports capex, R&D, aftermarket service investments and debt servicing, giving the company flexibility to fund strategic needs over the medium term.

Margin sustainability

High gross margins (~44%) alongside a positive net margin (7.68%) signal structural pricing power and effective cost control in manufacturing. These margins provide a cushion against input cost volatility and enable ongoing investment in product quality and service capabilities over multiple quarters.

Balance sheet strength

Low leverage (D/E 0.24) combined with strong ROE (~18.5%) and a solid equity ratio (~42%) indicates conservative financial structure and efficient capital use. This positions the company to withstand cyclical pressures, pursue targeted investments, and maintain financial flexibility over the medium term.

Negative Factors

Declining revenue trend

A ~20% decline in revenue suggests weakening demand or lost volumes. Persistent top-line contraction erodes operating leverage, pressures margins and free cash flow, and can constrain reinvestment and pricing flexibility if the business does not stabilize or regain OEM orders in coming quarters.

Decreasing free cash flow growth

Although FCF remains positive, a year-over-year decrease driven by higher capex reduces discretionary cash for dividends, debt reduction, or M&A. Continued elevated investment without commensurate revenue recovery could strain liquidity and delay improvement in returns on invested capital.

Customer concentration / OEM cyclicality

Reliance on direct OEM sales concentrates revenue exposure to customer program timing and capital cycles. This structural dependence raises revenue volatility and bargaining risk; without broader diversification into end-markets or geographic channels, cyclical downturns could materially impact results.

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 through the sale of its core products, including gearboxes, hydraulic components, and electronic systems. The company's revenue model is primarily based on direct sales to original equipment manufacturers (OEMs) and aftermarket sales to end-users in various industries. Key revenue streams include the sale of standard and customized power transmission solutions, as well as maintenance and support services. Significant partnerships with leading machinery manufacturers enhance its market reach and credibility, contributing to sustained earnings growth. Additionally, the company invests in research and development to innovate products that meet changing market demands, further bolstering its revenue potential.

Comer Industries SpA Financial Statement Overview

Summary

Comer Industries SpA presents a commendable financial performance with strong profitability metrics and stable cash flow operations. The company’s effective cost management and prudent financial strategies are evident in its healthy margins and cash flow ratios. However, the decrease in revenue and free cash flow growth rate highlights areas for improvement to sustain long-term growth. The balance sheet remains solid, with manageable leverage and a strong equity position, suggesting resilience and capacity for future investments.

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	158.67M	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: Neutral
• Last Price: 37.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:COM, the sentiment is Neutral. The current price of 37 is below the 20-day moving average (MA) of 50.01, below the 50-day MA of 47.33, and below the 200-day MA of 37.27, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 42.66 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	€4.13B	14.94	8.18%	0.92%	-1.69%	-7.64%
DAN	79 Outperform	€4.13B	21.57	8.18%	0.62%	-1.69%	-7.64%
IP	76 Outperform	€4.42B	20.19	10.99%	0.72%	-2.00%	2.11%
CRL	71 Outperform	€2.45B	37.09	15.31%	0.67%	3.99%	27.12%
COM	69 Neutral	€1.34B	22.43	―	1.80%	-20.36%	-23.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BSS	56 Neutral	€170.72M	-23.66	-2.86%	0.57%	-10.59%	-132.80%