Comer Industries SpA (COM) AI Stock Analysis

• Market Cap: €917.70M
• Dividend Yield: 2.5%
• Average Volume (3M): 4.21K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.35
• Revenue Growth: -23.00%
• EPS Growth: -28.46%
• Country: IT
• Employees: 2,872
• Sector: Industrials
• Sector Strength: 89
• Industry: Agricultural - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 28,678,090
• 10 Day Avg. Volume: 4,946
• 30 Day Avg. Volume: 4,207
• PEG Ratio: -1.02
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.52
• 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: €32.40
• Price Target Upside: 1.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: €33.00 ▲(3.13%Upside)

Comer Industries SpA receives a solid overall stock score of 72, driven primarily by its robust financial performance and attractive valuation. The company's strong profitability and stable cash flow operations, combined with a reasonable P/E ratio and dividend yield, provide a compelling investment case. Technical analysis suggests caution, as indicators show mixed signals.

Positive Factors

Business Model Resilience

The business model shows resilience despite weak market volumes, highlighting stability in challenging conditions.

Debt Management

Net debt improved significantly to Eu58mn from Eu95mn, driven by strong cash generation and a US plant disposal.

Profitability and Cash Generation

Comer's strong profitability and cash generation are expected to provide a competitive edge as the market improves.

Negative Factors

Agricultural Market Weakness

Tough market conditions are expected to persist, with major OEMs predicting further volume declines, particularly in the agricultural sector.

Market Volume Risks

Market volumes remain at risk due to reliance on components from regions subject to US tariffs, potentially impacting indirect market effects.

Tariff and Macroeconomic Uncertainty

The ongoing tariff war contributes to macroeconomic uncertainty, reducing market visibility and affecting sentiment surveys.

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 engineering products such as gearboxes and drive shafts. The company's revenue streams are diversified across different sectors including agriculture, industrial, and renewable energy, allowing it to tap into multiple markets. Key revenue drivers include long-term contracts with manufacturers of agricultural and industrial machinery, as well as partnerships with companies involved in renewable energy projects. Comer Industries benefits from its global distribution network, which enables it to reach a wide customer base and capitalize on international demand for its products. Additionally, the company's focus on innovation and quality helps maintain its competitiveness and pricing power in the market.

Comer Industries SpA Financial Statement Overview

Summary

Comer Industries SpA exhibits commendable financial performance characterized by strong profitability metrics and stable cash flow operations. The company's effective cost management is evident in its healthy margins. However, a decrease in revenue and free cash flow growth rate signals areas for potential improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	942.37M	1.22B	1.24B	601.00M	397.23M
Gross Profit	418.88M	557.50M	536.90M	221.85M	148.95M
EBITDA	163.92M	205.41M	184.28M	67.29M	43.85M
Net Income	67.22M	94.03M	90.72M	39.43M	21.77M
Balance Sheet
Total Assets	1.12B	1.20B	1.25B	1.16B	306.46M
Cash, Cash Equivalents and Short-Term Investments	102.24M	68.33M	151.33M	85.74M	38.18M
Total Debt	120.63M	163.16M	242.25M	206.95M	12.07M
Total Liabilities	579.16M	687.42M	805.30M	809.90M	163.09M
Stockholders Equity	544.17M	507.59M	443.88M	345.61M	143.38M
Cash Flow
Free Cash Flow	48.91M	163.10M	60.26M	46.56M	36.56M
Operating Cash Flow	110.38M	203.82M	94.14M	67.50M	49.69M
Investing Cash Flow	-49.91M	-90.79M	-34.12M	-20.94M	-11.59M
Financing Cash Flow	-39.30M	-196.03M	5.57M	191.52M	-16.26M

Comer Industries SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.00
• 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 32 is above the 20-day moving average (MA) of 31.30, above the 50-day MA of 30.45, and above the 200-day MA of 29.55, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 55.14 is Neutral, neither overbought nor oversold. The STOCH value of 69.18 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
COM	72 Outperform	€917.70M	13.64		2.50%	-23.00%	-28.46%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%
0DUK	―	€210.18M	51.54	1.43%	0.52%	―	―
0N4I	―	€2.26B	5.32	10.20%	1.23%	―	―
0APM	―	€2.30B	6.87	10.20%	0.89%	―	―
0EWD	―	€3.66B	16.98	11.06%	0.96%	―	―
CIG	―	€2.67B	47.21	13.25%	0.70%	―	―