Davide Campari-Milano SpA (CPR) AI Stock Analysis

• Market Cap: €10.32B
• Dividend Yield: 1.15%
• Average Volume (3M): 5.55M
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.53
• Revenue Growth: 3.02%
• EPS Growth: -44.69%
• Country: IT
• Employees: 5,182
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.00
• Shares Outstanding: 1,231,267,700
• 10 Day Avg. Volume: 6,611,050
• 30 Day Avg. Volume: 5,550,834
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €6.82
• Price Target Upside: 20.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 55 Neutral
• Price Target: €6.50 ▲(14.64% Upside)

The overall stock score of 55 reflects a stable financial performance with solid revenue growth and improved cash flow metrics. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Negative Factors

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-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: Negative
• Last Price: 5.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CPR, the sentiment is Negative. The current price of 5.67 is below the 20-day moving average (MA) of 6.19, below the 50-day MA of 6.30, and below the 200-day MA of 5.85, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 26.99 is Positive, neither overbought nor oversold. The STOCH value of 7.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
VLS	75 Outperform	124.54M	14.77	9.15%	3.30%	2.66%	9.72%
ORS	70 Neutral	326.73M	10.03	0.00%	2.68%	9.91%	5.61%
CPR	55 Neutral	€10.32B	36.01	5.02%	1.15%	3.02%	-44.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%