Comer Industries SpA (COM) AI Stock Analysis

• Market Cap: €1.45B
• Dividend Yield: 1.8%
• Average Volume (3M): 5.74K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.36
• Revenue Growth: -20.36%
• EPS Growth: -23.31%
• Country: US
• 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: €41.50
• Price Target Upside: 12.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €55.00 ▲(48.65% 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

Strong cash generation

An operating cash flow to net income ratio near 2.17 signals high cash quality and conversion of reported profits into cash. This durable cash generation supports debt service, reinvestment and working capital needs over the next 2-6 months, enhancing financial flexibility.

Conservative leverage and strong ROE

Low leverage (D/E ~0.24), a healthy equity ratio and ROE of 18.5% indicate a resilient balance sheet and efficient capital use. This provides capacity for capex or selective investments while limiting solvency risk, a durable foundation for 2-6 month strategic execution.

High and sustainable margins

Robust gross margin (~44%) and positive net margin (~7.7%) show structural pricing power and cost control across core products. Margin resilience helps absorb revenue dips and funds R&D and aftermarket service investment, supporting medium-term profitability stability.

Negative Factors

Material revenue decline

Reported revenue contraction of roughly 20% and concurrent EPS decline highlight meaningful top-line weakness. Persistent revenue shrinkage reduces operating leverage and may pressure margins and reinvestment capacity unless demand stabilizes, a key risk over the next months.

Declining free cash flow growth from higher capex

A drop in free cash flow driven by elevated capex limits discretionary cash for dividends, M&A or debt reduction even if operating cash is strong. If capex remains high, cash available for other strategic uses could be constrained over the medium term.

Exposure to cyclical end markets

Concentration in agriculture, industrial and construction equipment markets ties revenue to investment cycles and commodity-related spending. This structural cyclicality can produce recurring demand volatility and complicate mid-term revenue recovery and planning over the coming 2-6 months.

Comer Industries SpA Business Overview & Revenue Model

Company Description

Comer Industries SpA is a leading global manufacturer of advanced power transmission solutions, primarily serving the agricultural, industrial, and construction sectors. The company specializes in designing and producing gearboxes, hydraulic components, and electronic systems, which are essential for enhancing the performance and efficiency of machinery. With a strong focus on innovation and quality, Comer Industries has established a solid reputation for delivering high-performance products tailored to meet the specific needs of its diverse clientele.

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: Positive
• Last Price: 37.00
• 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:COM, the sentiment is Positive. The current price of 37 is below the 20-day moving average (MA) of 49.80, below the 50-day MA of 44.85, and above the 200-day MA of 36.11, indicating a bullish trend. The MACD of 1.79 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 58.35 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	79 Outperform	€4.06B	14.78	8.18%	0.92%	-1.69%	-7.64%
DAN	79 Outperform	€4.06B	21.15	8.18%	0.62%	-1.69%	-7.64%
IP	76 Outperform	€5.17B	23.60	10.99%	0.72%	-2.00%	2.11%
CRL	71 Outperform	€2.43B	36.83	15.31%	0.67%	3.99%	27.12%
COM	69 Neutral	€1.45B	24.30	―	1.80%	-20.36%	-23.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BSS	56 Neutral	€180.31M	-24.38	-2.86%	0.57%	-10.59%	-132.80%