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

• Market Cap: €5.78B
• Dividend Yield: 2.24%
• Average Volume (3M): 143.26K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.12
• Revenue Growth: 13.95%
• EPS Growth: 17.07%
• Country: IT
• Employees: 10,384
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): N/A
• Shares Outstanding: 151,294,740
• 10 Day Avg. Volume: 189,467
• 30 Day Avg. Volume: 143,260
• PEG Ratio: 0.64
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 11.89
• 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: €43.50
• Price Target Upside: 13.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: €43.00 ▲(11.98% Upside)

The score is driven primarily by strong financial quality—especially the zero-debt balance sheet and healthy margins—tempered by weaker and more volatile recent free cash flow. Technicals add support via a clear multi-timeframe uptrend and positive MACD, while valuation is fair with a moderate dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business stability and expansion potential.

Profitability Margins

Strong profitability margins reflect efficient cost management and pricing power, supporting sustainable earnings and competitive positioning.

Balance Sheet Health

A low debt-to-equity ratio indicates conservative financial leverage, providing financial flexibility and reducing risk in economic downturns.

Negative Factors

Operational Efficiency

Challenges in operational efficiency could lead to increased costs and reduced profitability, potentially impacting long-term competitiveness.

EBIT Margin Pressure

A declining EBIT margin suggests rising operational costs or pricing pressures, which may affect future profitability if not addressed.

Free Cash Flow Decline

A decline in free cash flow could limit the company's ability to invest in growth opportunities or return capital to shareholders, impacting long-term growth.

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 range of small appliances. The company's revenue model is based on direct sales to consumers through retail channels, e-commerce platforms, and partnerships with distributors and wholesalers. Key revenue streams include coffee machines, which are a significant component of its product line, as well as other kitchen and home comfort appliances. De'Longhi also benefits from premium pricing strategies due to its brand reputation for quality and innovation. Additionally, the company engages in strategic partnerships with retailers and distributors to expand its market reach, and it invests in marketing and branding to enhance consumer awareness and drive sales. Seasonal demand for certain products, especially coffee machines during holidays and special occasions, also contributes to its earnings.

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

Summary

De'Longhi S.p.A. demonstrates strong financial health with consistent revenue growth, solid profitability margins, and a stable balance sheet with low leverage. Cash flow generation is efficient, supporting strategic growth opportunities. However, there is room for improvement in 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	3.72B	3.49B	3.07B	3.16B	3.22B	2.35B
Gross Profit	1.27B	1.12B	1.30B	804.78M	978.28M	726.23M
EBITDA	603.63M	549.93M	436.08M	356.29M	501.05M	339.09M
Net Income	324.54M	310.74M	250.38M	177.43M	311.10M	200.13M
Balance Sheet
Total Assets	3.89B	4.34B	3.81B	3.55B	3.93B	2.95B
Cash, Cash Equivalents and Short-Term Investments	625.60M	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	1.81B	2.07B	2.00B	1.89B	2.36B	1.68B
Stockholders Equity	1.89B	2.08B	1.81B	1.66B	1.57B	1.27B
Cash Flow
Free Cash Flow	236.03M	382.90M	489.06M	23.01M	367.49M	375.82M
Operating Cash Flow	320.86M	486.38M	584.33M	151.93M	502.61M	467.43M
Investing Cash Flow	-124.88M	-423.28M	-311.94M	-129.29M	-231.20M	-418.82M
Financing Cash Flow	-510.24M	-299.24M	-12.16M	-274.55M	95.00M	-113.40M

De'Longhi S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 38.4 is above the 20-day moving average (MA) of 37.06, above the 50-day MA of 35.64, and above the 200-day MA of 30.35, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 83.75 is Negative, 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	79 Outperform	€5.78B	18.02	17.64%	2.24%	13.95%	17.07%
INDB	66 Neutral	€111.35M	4.43	17.82%	4.15%	-5.58%	165.78%
ICOS	65 Neutral	€1.20B	25.28	―	1.79%	9.02%	4.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GEO	43 Neutral	€113.51M	-4.29	-25.42%	―	-5.49%	-62.25%