De'Longhi S.p.A. (DLG) AI Stock Analysis

• Market Cap: €4.40B
• Dividend Yield: 2.69%
• Average Volume (3M): 136.60K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.07
• Revenue Growth: 13.95%
• EPS Growth: 17.07%
• Country: IT
• Employees: 10,384
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.78
• Shares Outstanding: 151,294,740
• 10 Day Avg. Volume: 182,427
• 30 Day Avg. Volume: 136,598
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €39.23
• Price Target Upside: 28.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: €32.00 ▲(4.99% Upside)

De'Longhi S.p.A. scores well due to its strong financial performance, characterized by consistent revenue growth and solid profitability. The valuation is reasonable, with a fair P/E ratio and a decent dividend yield. Technical analysis shows mixed signals, with a slight upward trend but bearish momentum. The absence of earnings call data and corporate events did not impact the score.

De'Longhi S.p.A. Business Overview & Revenue Model

Company Description

De'Longhi S.p.A., together with its subsidiaries, manufactures and distributes coffee making products, food preparation and cooking machines, air conditioners and heaters, and home care products. The company provides its products primarily under the De'Longhi, Kenwood, Braun, Nespresso, Nutribullet, Magic Bullet, and Ariete brands. It has operation in Europe, the Middle East, India, Africa, the Asia/Pacific, and the Americas. The company is headquartered in Treviso, Italy. De'Longhi S.p.A. is a subsidiary of De Longhi Industrial S.A.

How the Company Makes Money

De'Longhi generates revenue primarily through the sale of its diverse product offerings in the small appliance segment. The company operates a multi-channel distribution model, selling products through both retail partners and direct-to-consumer channels, including e-commerce platforms. Key revenue streams include the sale of coffee machines, which constitute a significant portion of their earnings, along with revenues from kitchen appliances and climate control products. Additionally, De'Longhi benefits from strategic partnerships with retailers and distributors that enhance its market reach. The company also invests in marketing and branding to promote its premium products, which helps command higher price points and contributes to profit margins.

De'Longhi S.p.A. Financial Statement Overview

Summary

De'Longhi S.p.A. demonstrates strong financial health, with consistent revenue growth and solid profitability margins. The company maintains a stable balance sheet with low leverage and efficient cash flow generation. However, there is a slight decrease in EBIT margin, indicating potential pressure on operational efficiency.

Income Statement

De'Longhi S.p.A. has shown strong revenue growth over the years, with a notable increase of approximately 13.54% from 2023 to 2024. The company maintains healthy profitability, evidenced by a robust gross profit margin of 31.98% and a net profit margin of 8.9% in 2024. However, there is a slight decrease in EBIT margin from the previous year, indicating potential pressure on operational efficiency despite the overall positive trajectory.

Balance Sheet

The balance sheet of De'Longhi S.p.A. reflects stability with a debt-to-equity ratio of 0.31, which is relatively low, indicating conservative financial leverage. Return on equity (ROE) is strong at 14.96%, showcasing effective use of equity capital. The equity ratio stands at 47.88%, suggesting a balanced capital structure. The company's financial position is solid, though there is room for improvement in optimizing asset utilization.

Cash Flow

De'Longhi S.p.A. exhibits a healthy cash flow position, with a free cash flow to net income ratio of 1.23, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is 1.56, reflecting strong cash flow from operations. Despite a decline in free cash flow from the previous year, the company's cash flow management remains robust, supporting its strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.58B	3.49B	3.07B	3.16B	3.22B	2.35B
Gross Profit	1.49B	1.12B	1.30B	804.78M	978.28M	726.23M
EBITDA	572.43M	549.93M	436.08M	356.29M	501.05M	339.09M
Net Income	316.84M	310.74M	250.38M	177.43M	311.10M	200.13M
Balance Sheet
Total Assets	4.11B	4.34B	3.81B	3.55B	3.93B	2.95B
Cash, Cash Equivalents and Short-Term Investments	861.10M	1.20B	1.32B	1.13B	1.32B	702.71M
Total Debt	0.00	647.25M	831.49M	907.35M	934.27M	679.03M
Total Liabilities	1.86B	2.07B	2.00B	1.89B	2.36B	1.68B
Stockholders Equity	2.06B	2.08B	1.81B	1.66B	1.57B	1.27B
Cash Flow
Free Cash Flow	327.47M	382.90M	489.06M	23.01M	367.49M	375.82M
Operating Cash Flow	426.08M	486.38M	584.33M	151.93M	502.61M	467.43M
Investing Cash Flow	-70.78M	-423.28M	-311.94M	-129.29M	-231.20M	-418.82M
Financing Cash Flow	-371.04M	-299.24M	-12.16M	-274.55M	95.00M	-113.40M

De'Longhi S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DLG, the sentiment is Positive. The current price of 30.48 is above the 20-day moving average (MA) of 30.30, above the 50-day MA of 29.90, and above the 200-day MA of 29.20, indicating a bullish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 34.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:DLG.

De'Longhi S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLG	73 Outperform	€4.40B	13.74	17.64%	2.69%	13.95%	17.07%
INDB	73 Outperform	€112.78M	4.49	17.82%	4.04%	-5.58%	165.78%
ICOS	65 Neutral	€1.17B	24.67	―	1.62%	9.02%	4.80%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
GEO	52 Neutral	€117.36M	―	-25.42%	―	-5.49%	-62.25%