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Davide Campari-Milano SpA (IT:CPR)
:CPR
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Davide Campari-Milano SpA (CPR) AI Stock Analysis

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IT:CPR

Davide Campari-Milano SpA

(Frankfurt:CPR)

Rating:69Neutral
Price Target:
€7.00
▲(7.03%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 (CPR) vs. iShares MSCI Italy ETF (EWI)

Davide Campari-Milano SpA Business Overview & Revenue Model

Company DescriptionDavide Campari-Milano SpA, commonly referred to as Campari Group, is a renowned Italian company operating in the global branded beverage industry. Established in 1860, the company specializes in the production and distribution of premium spirits, wines, and non-alcoholic beverages. Its diverse portfolio includes iconic brands such as Campari, Aperol, Skyy Vodka, Wild Turkey, and Grand Marnier, among others. The company operates across multiple segments, including spirits, wines, and soft drinks, and is recognized for its innovative marketing strategies and strong heritage.
How the Company Makes MoneyCampari Group generates revenue primarily through the sale of its branded alcoholic and non-alcoholic beverages across international markets. The company focuses on premium spirits, which represent the largest portion of its revenue, driven by its flagship brands like Campari and Aperol. It also earns income from the wine and soft drink segments, although to a lesser extent. Campari Group leverages its extensive distribution network to reach a wide audience, maintaining a strong presence in both mature and emerging markets. Strategic marketing campaigns and brand partnerships further enhance its revenue potential, while acquisitions of complementary brands and companies have expanded its product offerings and market reach. The company's business model is supported by a combination of organic growth and strategic acquisitions, allowing it to capitalize on global trends in the beverage industry.

Davide Campari-Milano SpA Financial Statement Overview

Summary
Davide Campari-Milano SpA demonstrates strong 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. The company's financial health is stable, but attention to operational efficiency and leverage management is crucial for sustained growth.
Income Statement
75
Positive
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
70
Positive
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
68
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.07B2.92B2.70B2.17B1.77B
Gross Profit1.77B1.70B1.59B1.30B1.03B
EBITDA493.40M647.50M608.70M499.60M330.50M
Net Income201.60M330.50M333.00M284.80M187.90M
Balance Sheet
Total Assets8.48B6.68B6.02B5.09B4.56B
Cash, Cash Equivalents and Short-Term Investments673.80M634.20M450.40M804.80M549.10M
Total Debt2.86B2.25B1.80B1.53B1.54B
Total Liabilities4.63B3.75B3.34B2.72B2.56B
Stockholders Equity3.85B2.93B2.68B2.37B2.00B
Cash Flow
Free Cash Flow210.40M-158.80M25.10M337.90M187.50M
Operating Cash Flow670.50M156.50M380.40M483.70M272.20M
Investing Cash Flow-1.60B-281.10M-805.90M-153.20M-252.40M
Financing Cash Flow981.80M323.00M38.20M-115.60M-139.70M

Davide Campari-Milano SpA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.54
Price Trends
50DMA
5.94
Positive
100DMA
5.81
Positive
200DMA
5.86
Positive
Market Momentum
MACD
0.12
Positive
RSI
63.23
Neutral
STOCH
32.45
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 6.54 is above the 20-day moving average (MA) of 6.25, above the 50-day MA of 5.94, and above the 200-day MA of 5.86, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 32.45 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€120.75M14.549.43%3.41%3.49%14.45%
70
Neutral
€248.63M8.2211.62%3.52%1.98%-42.30%
69
Neutral
€11.96B41.725.02%0.99%3.02%-44.69%
68
Neutral
€3.12B20.577.75%2.69%1.28%-25.99%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:CPR
Davide Campari-Milano SpA
6.54
-1.32
-16.79%
IT:VLS
Valsoia SpA
11.15
1.86
20.00%
IT:ORS
Orsero SpA
14.20
2.59
22.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025