Datalogic SPA (DAL) AI Stock Analysis

• Market Cap: €229.34M
• Dividend Yield: 2.64%
• Average Volume (3M): 100.11K
• Price to Earnings (P/E): 80.8
• Beta (1Y): 0.54
• Revenue Growth: 0.19%
• EPS Growth: -76.65%
• Country: US
• Employees: 2,615
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.04
• Shares Outstanding: 58,446,490
• 10 Day Avg. Volume: 75,898
• 30 Day Avg. Volume: 100,112
• PEG Ratio: 0.36
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 40.17
• 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: €5.55
• Price Target Upside: 30.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €4.50 ▲(6.13% Upside)

Datalogic SPA's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability. The technical analysis suggests stability, but the high P/E ratio indicates overvaluation concerns. The dividend yield offers some compensation, but the overall outlook is cautious.

Positive Factors

Market Position

As a leader in its field, Datalogic benefits from strong brand recognition and established customer relationships, which can drive sustained demand and competitive advantage in the long term.

Business Model Strength

The B2B model focusing on essential industries like retail and logistics ensures a steady demand for Datalogic's products, supporting long-term revenue stability.

Strategic Partnerships

Strategic partnerships enhance Datalogic's market reach and product offerings, providing a sustainable competitive edge and potential for growth.

Negative Factors

Declining Revenue

Declining revenues indicate potential loss of market share or demand, which can affect long-term financial health and investor confidence.

Profitability Challenges

Reduced profitability limits the company's ability to reinvest in growth initiatives and may impact its competitive positioning over time.

Cash Flow Concerns

Weak cash flow generation can hinder the company's ability to fund operations and growth, posing a risk to long-term sustainability.

Datalogic SPA Business Overview & Revenue Model

Company Description

Datalogic S.p.A. manufactures and sells automatic data capture and process automation products worldwide. It operates through Datalogic and Informatics segments. The company offers fixed retail scanners, including single plane scanners, presentation scanners, multi-plane imaging scanner/scales, and loss prevention solutions; general duty and industrial handheld scanners; wearable scanners; mobile computers, such as vehicle mounted and handheld computers, and related software solutions; and laser marking systems. It also provides stationery industrial scanners, including 1D reader scanners, 2D imager readers, linear cameras, dimensioners, connectivity products, and system integration solutions; photoelectric, inductive proximity, ultrasonic, capacitive, area, and optical encoder sensors; sensor accessories; safety devices and accessories; lidars and encoders; and machine vision products. In addition, the company offers RFID devices; and OEM barcode readers for self-service kiosk, clinical analyzer, or access control station. It serves retail, manufacturing, transportation and logistics, and healthcare sectors. The company was founded in 1972 and is headquartered in Bologna, Italy. Datalogic S.p.A. is a subsidiary of Hydra S.p.A.

How the Company Makes Money

Datalogic generates revenue through the sale of its hardware products, including barcode scanners and mobile computers, which are often accompanied by complementary software solutions. The company operates on a B2B model, targeting industries that require efficient data capture and automation, such as retail, logistics, and manufacturing. Key revenue streams include direct sales to end customers, partnerships with distributors and system integrators, and ongoing maintenance and support services for its products. Additionally, Datalogic benefits from strategic partnerships with major players in the technology and industrial sectors, which help expand its market reach and enhance its product offerings.

Datalogic SPA Financial Statement Overview

Summary

Datalogic SPA faces challenges with declining revenues and profitability, as reflected in the income statement. The balance sheet remains relatively stable with manageable leverage, but declining ROE is a concern. Cash flow generation is under pressure, with declining free cash flow growth. The company needs to address operational inefficiencies and improve cash generation to enhance financial health.

Income Statement

Datalogic SPA's income statement shows a declining revenue trend with a significant drop in the TTM period. The gross profit margin is stable but slightly below industry standards. Net profit margin has decreased significantly in the TTM period, indicating profitability challenges. EBIT and EBITDA margins are low, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio, suggesting manageable leverage. Return on equity has decreased over time, indicating reduced profitability for shareholders. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is low, indicating potential cash generation issues. However, the free cash flow to net income ratio is reasonable, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	486.86M	493.77M	536.62M	654.63M	600.52M	479.83M
Gross Profit	208.51M	207.67M	224.38M	274.11M	257.02M	216.62M
EBITDA	42.54M	39.26M	44.40M	75.44M	77.91M	43.13M
Net Income	2.83M	13.63M	9.86M	29.55M	38.91M	13.58M
Balance Sheet
Total Assets	701.49M	726.55M	719.50M	845.51M	818.87M	707.69M
Cash, Cash Equivalents and Short-Term Investments	73.38M	81.44M	70.63M	107.48M	106.08M	147.60M
Total Debt	108.38M	90.95M	105.95M	149.49M	133.35M	83.66M
Total Liabilities	310.48M	295.43M	308.37M	393.94M	397.14M	337.33M
Stockholders Equity	388.33M	427.98M	408.19M	448.05M	418.66M	368.20M
Cash Flow
Free Cash Flow	7.43M	6.84M	37.41M	16.41M	26.75M	25.32M
Operating Cash Flow	31.37M	34.11M	64.19M	42.81M	53.45M	68.11M
Investing Cash Flow	-30.61M	1.39M	-19.83M	-36.80M	-51.38M	-25.16M
Financing Cash Flow	-4.75M	-24.70M	-81.21M	-4.62M	-33.43M	-57.35M

Datalogic SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DAL, the sentiment is Negative. The current price of 4.24 is below the 20-day moving average (MA) of 4.43, below the 50-day MA of 4.44, and below the 200-day MA of 4.44, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 33.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:DAL.

Datalogic SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	66 Neutral	€147.32M	14.82	9.97%	4.10%	3.69%	-19.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DAL	57 Neutral	€229.34M	80.81	0.71%	2.64%	0.19%	-76.65%
AV	54 Neutral	€359.79M	-36.54	―	―	7.94%	91.30%
ETH	47 Neutral	€35.46M	-0.85	-51.98%	―	-23.11%	-284.12%