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

• Market Cap: €4.98B
• Dividend Yield: 1.32%
• Average Volume (3M): 134.09K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.61
• Revenue Growth: 3.24%
• EPS Growth: 17.49%
• Country: IT
• Employees: 3,249
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.15
• Shares Outstanding: 55,948,257
• 10 Day Avg. Volume: 148,507
• 30 Day Avg. Volume: 134,094
• PEG Ratio: 9.30
• Price to Book (P/B): 3.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.69
• 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: €106.71
• Price Target Upside: 17.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: €109.00 ▲(19.86%Upside)

DiaSorin S.p.A. enjoys a strong financial position with solid profitability and cash flow management. Despite mixed technical indicators, the stock shows potential for recovery. The high P/E ratio may indicate overvaluation, but the dividend yield offers some compensation. Overall, the company is well-positioned for future growth, although investors should be mindful of valuation concerns.

Positive Factors

Financial Performance

DiaSorin reported 4Q results which were a slight beat vs Consensus on Topline and EBITDA, starting the year on a solid footing backdrop considered.

Guidance

FY25 guidance of ~8% ex. COVID CER growth and ~34% EBITDA margins was reiterated, and provides a conservative start to the year.

Product Growth

Management also pointed to ~25% combined yoy growth for the Verigene and LIAISON PLEX to around €75m, which implies low-teens growth for FY25 in Molecular Diagnostics.

Negative Factors

Regional Growth

European growth slowed to 4% CER, with US growing 15%, effectively normalising above average growth driven by high market share tests.

Revenue Miss

DiaSorin reported 4Q results which were a ~2% miss vs Consensus on Topline and EBITDA, but achieved FY24 guidance.

Sector Performance

The headline of a lower Molecular Diagnostic 4Q into a strong respiratory season took us by surprise.

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

Company Description

DiaSorin S.p.A. develops, manufactures, and distributes immunodiagnostics and molecular diagnostics testing kits in Europe, Africa, North America, Central and South America, the Asia Pacific, and China. The company provides various immunodiagnostic LIAISON platforms, including LIAISON XS, LIAISON XL, and LIAISON XL LAS; and molecular diagnostics platform comprising of LIAISON MDX for use in the amplification of nucleic acids to diagnose viral infections through the identification of virus in patient's biological sample. It has partnership agreements with QIAGEN for diagnostic solution for Latent Tuberculosis detection; TTP for the development of molecular Point-of-Care solution; and MeMed for the launch of a test differentiating between viral and bacterial infections. The company was founded in 1968 and is headquartered in Saluggia, Italy.

How the Company Makes Money

DiaSorin S.p.A. generates revenue primarily through the sale of its diagnostic testing kits and related equipment to healthcare providers. The company's key revenue streams include sales of immunodiagnostic products, which detect and monitor various diseases and conditions, and molecular diagnostic solutions, which are used in the detection of specific genetic markers and infectious diseases. DiaSorin also benefits from strategic partnerships and collaborations with other biotech firms and research institutions, which help expand its product offerings and market reach. Additionally, the company invests in research and development to continuously enhance its product portfolio and maintain competitiveness in the diagnostics industry.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.21B	1.19B	1.15B	1.36B	1.24B	881.30M
	Gross Profit
793.93M	781.00M	741.19M	900.61M	824.77M	602.90M
	EBIT
275.90M	258.32M	235.79M	351.26M	419.50M	324.23M
	EBITDA
330.50M	399.04M	333.40M	479.71M	504.56M	383.62M
	Net Income Common Stockholders
193.01M	188.10M	159.85M	240.91M	310.97M	247.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	344.33M	378.75M	413.22M	403.02M	340.01M
	Total Assets
2.64B	3.30B	3.21B	3.41B	3.23B	1.25B
	Total Debt
749.00M	1.01B	1.18B	1.35B	1.40B	34.66M
	Net Debt
749.00M	669.92M	903.43M	1.11B	992.14M	-305.22M
	Total Liabilities
749.00M	1.51B	1.67B	1.89B	1.86B	290.13M
	Stockholders Equity
1.62B	1.80B	1.54B	1.52B	1.37B	954.68M
Cash Flow		Free Cash Flow
289.73M	239.07M	266.20M	275.65M	283.29M	229.74M
	Operating Cash Flow
354.92M	358.78M	311.66M	389.34M	400.66M	304.56M
	Investing Cash Flow
-80.97M	-49.81M	-29.10M	-231.95M	-1.61B	-73.02M
	Financing Cash Flow
-221.66M	-259.13M	-235.96M	-333.04M	1.26B	-40.89M

DiaSorin S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.94
• 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:DIA, the sentiment is Negative. The current price of 90.94 is below the 20-day moving average (MA) of 92.56, below the 50-day MA of 93.72, and below the 200-day MA of 99.30, indicating a bearish trend. The MACD of -1.24 indicates Positive momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 34.75 is Neutral, 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	83 Outperform	€304.17M	2.96		4.73%	16.92%	―
DIA	75 Outperform	€4.98B	27.05	11.27%	1.32%	3.24%	17.49%
REC	74 Outperform	€10.97B	26.22	22.02%	2.41%	12.85%	7.34%
PHN	66 Neutral	€495.67M	29.97		1.95%	17.78%	63.72%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%