Davide Campari-Milano SpA (CPR) AI Stock Analysis

• Market Cap: €12.10B
• Dividend Yield: 0.98%
• Average Volume (3M): 6.10M
• Price to Earnings (P/E): 42.6
• Beta (1Y): 0.54
• Revenue Growth: 3.02%
• EPS Growth: -44.69%
• Country: IT
• Employees: 5,182
• Sector: Consumer Defensive
• Sector Strength: 50
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.00
• Shares Outstanding: 1,231,267,700
• 10 Day Avg. Volume: 4,190,670
• 30 Day Avg. Volume: 6,102,164
• PEG Ratio: -0.87
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 2.35
• P/FCF Ratio: 34.34
• 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: €6.86
• Price Target Upside: 3.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• Price Target: €7.00 ▲(5.74% Upside)

The overall stock score of Davide Campari-Milano SpA is primarily influenced by its stable financial performance, despite challenges in net profitability and high leverage. Technical indicators show bullish momentum, providing a positive short-term outlook. However, the high P/E ratio suggests overvaluation, which could limit future gains. The absence of recent earnings call data or notable corporate events leaves these areas neutral in impact.

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 SpA (CPR) is a leading global beverage company based in Italy, specializing in the production and distribution of alcoholic and non-alcoholic beverages. Founded in 1860, the company operates in various sectors including spirits, wines, and soft drinks. Its core products include iconic brands such as Campari, Aperol, and Cinzano, as well as a range of premium spirits and ready-to-drink cocktails, serving a diverse customer base across multiple markets worldwide.

How the Company Makes Money

Campari-Milano generates revenue primarily through the sale of its alcoholic and non-alcoholic beverage products across both retail and on-trade channels. The company employs a multi-channel distribution strategy, leveraging partnerships with wholesalers, retailers, and the hospitality sector to reach consumers effectively. Key revenue streams include the sales of premium spirits, which often carry higher profit margins, and the growing segment of ready-to-drink cocktails. Additionally, the company benefits from strategic acquisitions of complementary brands and products, enhancing its portfolio and market reach. Seasonal promotions, marketing campaigns, and brand collaborations also contribute to its earnings, driving consumer engagement and sales growth in various regions.

Davide Campari-Milano SpA Financial Statement Overview

Summary

Davide Campari-Milano SpA demonstrates solid revenue growth and gross profit margins, but faces challenges with declining net profitability and high leverage. Cash flow metrics show improvement, highlighting better cash conversion and capital management. While the company's financial health is generally stable, attention to operational efficiency and leverage management will be crucial for sustained growth.

Income Statement

Davide Campari-Milano SpA shows a robust gross profit margin, consistently around 57-58% over the years, indicating strong pricing power and cost management. However, the net profit margin has declined from 10.6% in 2023 to 6.6% in 2024. Revenue growth is healthy at 5.2% from 2023 to 2024, but a significant drop in EBIT margin from 18.5% to 12.8% suggests rising costs or pricing pressures impacting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio increased from 0.77 in 2023 to 0.74 in 2024, indicating higher leverage which could pose risks if not managed properly. The ROE decreased from 11.3% in 2023 to 5.2% in 2024, pointing to reduced efficiency in generating returns for shareholders. However, the equity ratio remains stable, highlighting a well-capitalized balance sheet.

Cash Flow

The operating cash flow to net income ratio improved significantly from 0.47 in 2023 to 3.32 in 2024, showing improved cash conversion efficiency. However, free cash flow growth is volatile, with a shift from negative to positive, reflecting improved capital expenditure management. The free cash flow to net income ratio also improved from -0.48 to 1.04, indicating stronger cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	3.07B	2.92B	2.70B	2.17B	1.77B
Gross Profit	1.78B	1.77B	1.70B	1.59B	1.30B	1.03B
EBITDA	560.30M	493.40M	647.50M	608.70M	499.60M	330.50M
Net Income	188.30M	201.60M	330.50M	333.00M	284.80M	187.90M
Balance Sheet
Total Assets	8.03B	8.48B	6.68B	6.02B	5.09B	4.56B
Cash, Cash Equivalents and Short-Term Investments	484.70M	673.80M	634.20M	450.40M	804.80M	549.10M
Total Debt	2.73B	2.86B	2.25B	1.80B	1.53B	1.54B
Total Liabilities	4.32B	4.63B	3.75B	3.34B	2.72B	2.56B
Stockholders Equity	3.71B	3.85B	2.93B	2.68B	2.37B	2.00B
Cash Flow
Free Cash Flow	245.00M	210.40M	-158.80M	25.10M	337.90M	187.50M
Operating Cash Flow	576.30M	670.50M	156.50M	380.40M	483.70M	272.20M
Investing Cash Flow	-426.00M	-1.60B	-281.10M	-805.90M	-153.20M	-252.40M
Financing Cash Flow	-210.30M	981.80M	323.00M	38.20M	-115.60M	-139.70M

Davide Campari-Milano SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.62
• 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:CPR, the sentiment is Positive. The current price of 6.62 is above the 20-day moving average (MA) of 6.52, above the 50-day MA of 6.20, and above the 200-day MA of 5.82, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 47.30 is Neutral, 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	69 Neutral	€12.10B	42.63	5.02%	0.98%	3.02%	-44.69%
Sector *	63 Neutral	$20.57B	14.66	-3.60%	3.12%	2.70%	-8.60%
0GEJ	―	€124.54M	13.42	9.43%	―	―	―
WRG	―	€279.80M	9.17	11.62%	―	―	―
IWB	―	€207.99M	8.92		―	―	―
NWL	―	€1.09B	6.71		―	―	―