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

• Market Cap: €5.04B
• Dividend Yield: 1.11%
• Average Volume (3M): 144.01K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.56
• Revenue Growth: 3.24%
• EPS Growth: 17.49%
• Country: IT
• Employees: 3,249
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.15
• Shares Outstanding: 55,948,257
• 10 Day Avg. Volume: 137,562
• 30 Day Avg. Volume: 144,015
• 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: €107.00
• Price Target Upside: 16.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: €105.00 ▲(14.08%Upside)

DiaSorin S.p.A. demonstrates strong financial performance with significant profitability and cash flow generation, providing a solid foundation for future stability. However, the technical analysis indicators suggest neutral momentum, and the high P/E ratio indicates potential overvaluation, limiting the stock's appeal at current levels.

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.

Growth Prospects

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

Product Segment Performance

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

Quarterly Performance

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

Regional Performance

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

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
EBITDA	330.50M	399.04M	333.40M	479.71M	504.56M	383.62M
Net Income	193.01M	188.10M	159.85M	240.91M	310.97M	247.87M
Balance Sheet
Total Assets	2.64B	3.30B	3.21B	3.41B	3.23B	1.25B
Cash, Cash Equivalents and Short-Term Investments	0.00	344.33M	378.75M	413.22M	403.02M	340.01M
Total Debt	749.00M	1.01B	1.18B	1.35B	1.40B	34.66M
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: 92.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 92.04 is below the 20-day moving average (MA) of 93.14, below the 50-day MA of 94.20, and below the 200-day MA of 98.65, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 40.16 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
DIA	75 Outperform	€5.04B	27.34	11.27%	1.11%	3.24%	17.49%
Sector *	46 Neutral	C$190.36M	-4.25	-8.56%	3.10%	13.57%	-1.98%
0KBS		€11.01B	26.32	22.02%	2.51%	―	―
PHN	66 Neutral	€448.71M	27.13		1.85%	17.78%	63.72%
GHC		€459.67M	20.60	6.75%	1.72%	―	―
GPI	83 Outperform	€322.03M	3.10		6.23%	16.92%	―
SVS		€42.21M	7.53		3.80%	―	―