Davide Campari-Milano SpA (CPR) AI Stock Analysis

• Market Cap: €10.99B
• Dividend Yield: 1.1%
• Average Volume (3M): 6.38M
• Price to Earnings (P/E): 35.4
• Beta (1Y): 0.61
• Revenue Growth: 5.18%
• EPS Growth: -42.47%
• Country: IT
• Employees: 5,182
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.17
• Shares Outstanding: 1,231,267,700
• 10 Day Avg. Volume: 5,739,389
• 30 Day Avg. Volume: 6,380,900
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €7.23
• Price Target Upside: 20.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Davide Campari-Milano SpA is experiencing solid revenue growth and improving cash flow metrics, but faces challenges with declining net profitability and high leverage. The technical indicators show mixed signals, with some short-term positive momentum but potential overbought conditions. Valuation appears high, which could limit upside potential. Overall, the stock presents a moderate risk-reward profile.

Positive Factors

Earnings

4Q24 results showed a 3% beat on organic top-line growth and 140bp beat on underlying EBIT margin.

Financial Performance

FY24 FCF reached €0.6bn, up €0.5bn mainly due to working capital improvements.

Future Outlook

FY25 margins are expected to rebound as a combination of stronger fixed-cost absorption, raw materials tailwind, and the first positive impact of the reorganization.

Negative Factors

Earnings Miss

3Q24 organic sales down -1.4% translating into a 23% miss on adj. EBIT consensus, driven by all regions.

Profitability Pressure

The FY24 guidance was slashed to +LSD top-line growth with continued pressure on profitability.

Tariffs

25% tariffs on U.S. imports from Mexico, Canada and Europe would cost an annualized €90-100m before any mitigation.

Davide Campari-Milano SpA Business Overview & Revenue Model

Company Description

Davide Campari-Milano N.V., together with its subsidiaries, markets and distributes alcoholic and non-alcoholic beverages in the Americas, the Middle East, Africa, Europe, and the Asia-Pacific. It offers range of spirits categories, including aperitif, vodka, liqueurs, bitters, whisky, tequila, rum, gin, and cognac, as well as champagne and non-alcoholic aperitif under various brands, such as Aperol, Campari, SKYY, Wild Turkey, Grand Marnier, Appleton Estate, Wray & Nephew Overproof, and other brands. The company was founded in 1860 and is headquartered in Sesto San Giovanni, Italy. Davide Campari-Milano N.V. is a subsidiary of Lagfin S.C.A., Société en Commandite par Actions.

How the Company Makes Money

Campari Group generates revenue primarily through the production, marketing, and sale of its extensive portfolio of alcoholic and non-alcoholic beverages. The company's key revenue streams include the sale of spirits, wines, and soft drinks across various international markets. Campari Group leverages its strong brand portfolio and extensive distribution network to penetrate both mature and emerging markets, enhancing visibility and brand loyalty. Strategic acquisitions and partnerships also play a significant role in expanding its market reach and product offerings. Additionally, the company invests in marketing and promotional activities to strengthen brand recognition and consumer engagement, further driving sales and profitability.

Davide Campari-Milano SpA Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.92B	2.70B	2.17B	1.77B	1.84B
	Gross Profit
1.70B	1.59B	1.30B	1.03B	1.12B
	EBIT
540.20M	511.50M	400.80M	231.80M	386.30M
	EBITDA
647.50M	608.70M	499.60M	330.50M	470.20M
	Net Income Common Stockholders
330.50M	333.00M	284.80M	187.90M	308.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
637.00M	450.50M	804.90M	549.10M	710.20M
	Total Assets
6.68B	6.01B	5.09B	4.56B	4.84B
	Total Debt
2.25B	1.80B	1.53B	1.54B	1.31B
	Net Debt
1.63B	1.37B	741.40M	994.30M	602.80M
	Total Liabilities
3.75B	3.33B	2.72B	2.56B	2.45B
	Stockholders Equity
2.93B	2.67B	2.37B	2.00B	2.39B
Cash Flow		Free Cash Flow
-158.80M	25.10M	337.90M	187.50M	271.00M
	Operating Cash Flow
156.50M	380.40M	483.70M	272.20M	363.00M
	Investing Cash Flow
-281.10M	-805.90M	-153.20M	-252.40M	4.30M
	Financing Cash Flow
323.00M	38.20M	-115.60M	-139.70M	-273.20M

Davide Campari-Milano SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CPR, the sentiment is Positive. The current price of 6 is above the 20-day moving average (MA) of 5.63, above the 50-day MA of 5.70, and below the 200-day MA of 6.46, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CPR.

Davide Campari-Milano SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPR	65 Neutral	€10.99B	35.41	5.95%	1.10%	5.18%	-42.47%
Sector *	64 Neutral	$8.87B	14.81	5.05%	174.26%	3.56%	3.68%