DiaSorin S.p.A. (DIA) AI Stock Analysis

• Market Cap: €4.67B
• Dividend Yield: 1.39%
• Average Volume (3M): 176.03K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.55
• Revenue Growth: 4.67%
• EPS Growth: 13.40%
• Country: IT
• Employees: 3,249
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.15
• Shares Outstanding: 55,948,257
• 10 Day Avg. Volume: 228,430
• 30 Day Avg. Volume: 176,027
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: €105.00
• Price Target Upside: 23.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 65 Neutral
• Price Target: €99.00 ▲(16.47% Upside)

DiaSorin S.p.A. demonstrates strong financial performance with solid profitability and effective cash flow management, which is a significant positive factor. However, technical analysis indicates bearish trends, and the valuation suggests the stock might be overvalued, which are notable risks. The absence of impactful earnings call data or corporate events leaves these strengths and risks as the primary influencers of the overall score.

Positive Factors

Financial performance

DiaSorin reported fourth-quarter results which slightly beat expectations on topline and EBITDA, indicating a strong start to the year.

Guidance and future growth

FY25 guidance of approximately 8% ex. COVID CER growth and around 34% EBITDA margins was reiterated, providing a conservative outlook that instills investor confidence.

Product growth

Management highlighted a combined year-over-year growth of around 25% for Verigene and LIAISON PLEX, suggesting robust growth in Molecular Diagnostics for FY25.

Negative Factors

Molecular Diagnostics

The headline of a lower Molecular Diagnostic fourth quarter into a strong respiratory season was unexpected, indicating potential challenges in this segment.

Quarterly performance

DiaSorin reported a fourth-quarter result that was approximately 2% below consensus on topline and EBITDA, though it still achieved FY24 guidance.

Slowing growth

European growth slowed to 4% CER, suggesting a normalization after previously strong growth driven by high market share tests.

DiaSorin S.p.A. Business Overview & Revenue Model

Company Description

DiaSorin S.p.A. (DIA) is a global leader in the biotechnology sector, specializing in the development, production, and commercialization of diagnostic tests. The company provides a wide range of testing solutions primarily in the fields of immunodiagnostics and molecular diagnostics. DiaSorin's core products include reagent kits and equipment used for the diagnosis of various diseases such as infectious diseases, oncology, endocrinology, and bone metabolism disorders. With a strong emphasis on innovation, DiaSorin is committed to enhancing healthcare through accurate and reliable diagnostic solutions.

How the Company Makes Money

DiaSorin S.p.A. generates revenue primarily through the sale of diagnostic testing products, including reagent kits and diagnostic equipment. The company operates in both the immunodiagnostics and molecular diagnostics segments, providing a comprehensive portfolio of tests used by hospitals, laboratories, and clinics worldwide. Key revenue streams include the sale of consumable reagents, which are recurring revenue generators as they are needed for each test, and the leasing or sale of diagnostic instruments. DiaSorin's business model also benefits from long-term customer relationships and significant global distribution networks. Additionally, strategic partnerships and collaborations with healthcare providers and research institutions enhance the company's market reach and contribute to its revenue growth. The company's focus on R&D and ability to quickly develop tests in response to emerging health threats, such as infectious diseases, further strengthens its revenue potential.

DiaSorin S.p.A. Financial Statement Overview

Summary

DiaSorin S.p.A. is financially sound with strong profitability, effective cash flow generation, and a stable balance sheet. The company has demonstrated resilience in revenue growth and maintains a strategic balance between debt and equity, positioning it well for future growth and stability in the medical diagnostics industry.

Income Statement

DiaSorin S.p.A. exhibits strong profitability with a consistent gross profit margin of approximately 66% and a stable net profit margin around 16%. Revenue growth has shown resilience, recovering from a decline in 2022 to a growth of 3.2% in 2024. EBIT and EBITDA margins also reflect robust operational efficiency, with EBIT at 23% and EBITDA at 31% in 2024.

Balance Sheet

The company's balance sheet shows solid equity with a debt-to-equity ratio of 0.53, indicating prudent leverage. Return on equity has improved to 10.4% in 2024, showcasing effective shareholder value creation. The equity ratio remains healthy at 59.5%, reflecting financial stability and reduced risk exposure.

Cash Flow

DiaSorin S.p.A. demonstrates strong cash flow management, with a free cash flow growth of 34.9% in 2024. The operating cash flow to net income ratio is robust at 1.92, and the free cash flow to net income ratio stands at 1.92, indicating efficient conversion of profits into cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.19B	1.15B	1.36B	1.24B	881.30M
Gross Profit	781.00M	741.19M	900.61M	824.77M	602.90M
EBITDA	399.04M	333.40M	479.71M	504.56M	383.62M
Net Income	188.10M	159.85M	240.91M	310.97M	247.87M
Balance Sheet
Total Assets	3.30B	3.21B	3.41B	3.23B	1.25B
Cash, Cash Equivalents and Short-Term Investments	378.92M	378.75M	384.19M	403.02M	339.88M
Total Debt	1.01B	1.19B	1.35B	1.40B	34.66M
Total Liabilities	1.51B	1.67B	1.89B	1.86B	290.13M
Stockholders Equity	1.80B	1.54B	1.52B	1.37B	954.68M
Cash Flow
Free Cash Flow	239.07M	266.20M	275.65M	283.29M	229.74M
Operating Cash Flow	358.78M	311.66M	389.34M	400.66M	304.56M
Investing Cash Flow	-49.81M	-29.10M	-231.95M	-1.61B	-73.02M
Financing Cash Flow	-259.13M	-235.96M	-333.04M	1.26B	-40.89M

DiaSorin S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 85.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DIA, the sentiment is Negative. The current price of 85 is below the 20-day moving average (MA) of 89.15, below the 50-day MA of 91.05, and below the 200-day MA of 96.95, indicating a bearish trend. The MACD of -1.47 indicates Positive momentum. The RSI at 31.70 is Neutral, neither overbought nor oversold. The STOCH value of 17.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:DIA.

DiaSorin S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPI	79 Outperform	€438.97M	4.23		5.58%	16.92%	―
PHN	66 Neutral	€458.39M	27.40		2.16%	17.78%	63.72%
REC	65 Neutral	€10.46B	25.66	22.16%	2.50%	11.51%	5.23%
DIA	65 Neutral	€4.67B	23.93	12.16%	1.39%	4.67%	13.40%
Sector *	61 Neutral	€2.50B	13.21	-8.75%	2.62%	23.33%	-34.98%