Aquafil SpA (ECNL) AI Stock Analysis

• Market Cap: €138.01M
• Dividend Yield: N/A
• Average Volume (3M): 158.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -2.47%
• EPS Growth: 61.58%
• Country: IT
• Employees: 2,498
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 73,172,200
• 10 Day Avg. Volume: 253,489
• 30 Day Avg. Volume: 158,637
• 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: €1.50
• Price Target Upside: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: €1.50 ▼(-5.66% Downside)

Aquafil SpA's overall stock score reflects significant financial challenges, including negative profitability and cash flow issues, despite some balance sheet improvements. The technical analysis shows mixed signals, with some positive momentum but no strong indicators of a bullish trend. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors combine to result in a below-average stock score.

Positive Factors

Financial Position

Aquafil’s financial position improved significantly over the quarter, supported by the successful completion of its €40mn capital raise, which strengthened the company’s balance sheet.

Profitability

Profitability up despite impact from higher utilities costs, with Adj. EBITDA up 12.2% YoY and 4.1% above forecast.

Revenue Achievements

Econyl, which now accounts for 60.5% of total fiber revenues, surpasses the company’s 2025 target of 60%.

Negative Factors

Profitability Expectations

Aquafil’s 4Q results came in below expectations and company targets on profitability, impacting the rest of the P&L and the NFP.

Quarterly Results

Aquafil’s 4Q results came in below expectations and company targets on profitability, impacting the rest of the P&L and the NFP.

Aquafil SpA Business Overview & Revenue Model

Company Description

Aquafil S.p.A., together with its subsidiaries, engages in the production, reprocessing, and sale of polyamide 6 fibers and polymers in Europe, the United States, and Asia. The company offers bulk continuous filament or synthetic yarns for the textile flooring sector, as well as used in hotels, airports, offices, etc., and residential buildings and the automotive market; nylon textile filaments for sportswear, classic, and technical or specialist apparels; and polymers products or plastic raw materials primarily for engineering plastics sector for use in molding industry, as well as manufactures and sells polymers for use in plastic-molded accessories in the fashion and designer furniture industries. It is also involved in the design and construction of industrial chemical plants. The company markets its products under the Dryarn and ECONYL brands. The company was founded in 1965 and is headquartered in Arco, Italy. Aquafil S.p.A. is a subsidiary of Aquafin Holding S.p.A.

How the Company Makes Money

Aquafil SpA generates revenue primarily through the sale of its synthetic fibers and yarns, such as the ECONYL® brand, to manufacturers and designers in the textile, carpet, and fashion industries. A significant portion of its revenue comes from its commitment to sustainability, which attracts environmentally-conscious clients and partners. The company benefits from partnerships with major brands that prioritize sustainability, enhancing its market presence and profitability. Additionally, Aquafil engages in collaborations with organizations and initiatives focused on promoting recycling and circular economy practices, which further supports its revenue streams by aligning with global sustainability trends.

Aquafil SpA Financial Statement Overview

Summary

Aquafil SpA faces significant financial challenges with negative profitability and cash flow issues. Despite improved debt levels and a low debt-to-equity ratio, profitability remains weak due to negative net income and cash flow difficulties.

Income Statement

Aquafil SpA's income statement highlights several challenges. The TTM data shows a negative net income, indicating ongoing profitability issues. Gross profit margin stands at 23.6%, while the net profit margin is negative at -2.4%, reflecting struggles with cost control and revenue conversion. Revenue has slightly increased compared to the previous year, but the company experienced a significant revenue decline from earlier periods, signaling volatility. EBIT and EBITDA margins have shown improvement in the TTM, yet profitability remains weak overall.

Balance Sheet

Aquafil SpA's balance sheet reflects a mixed financial position. The company's debt-to-equity ratio has improved to a low level due to reduced debt, enhancing financial stability. However, the equity ratio is modest at 24%, indicating limited shareholder equity relative to total assets. The return on equity remains negative, reflecting current profitability challenges. Overall, while the balance sheet shows some improvements, the company still faces significant leverage concerns.

Cash Flow

The cash flow analysis for Aquafil SpA reveals ongoing cash flow management difficulties. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite negative net income. However, free cash flow has turned negative in the TTM, reflecting higher capital expenditures. The free cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting revenue into free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	542.13M	571.81M	684.90M	570.31M	446.87M
Gross Profit	109.49M	159.55M	204.31M	180.22M	156.81M
EBITDA	56.02M	39.84M	92.79M	63.98M	51.21M
Net Income	-16.31M	-25.85M	29.15M	10.67M	595.00K
Balance Sheet
Total Assets	655.26M	701.22M	724.96M	668.67M	679.70M
Cash, Cash Equivalents and Short-Term Investments	130.37M	163.37M	120.65M	153.52M	209.79M
Total Debt	343.77M	411.90M	83.15M	332.39M	427.48M
Total Liabilities	496.91M	575.96M	549.55M	516.56M	552.80M
Stockholders Equity	158.35M	125.25M	175.40M	152.10M	126.90M
Cash Flow
Free Cash Flow	1.66M	35.90M	-52.15M	49.44M	32.39M
Operating Cash Flow	23.44M	69.58M	-13.12M	89.05M	60.26M
Investing Cash Flow	-24.03M	-33.22M	-38.63M	-40.25M	-29.45M
Financing Cash Flow	-26.52M	10.62M	9.78M	-105.10M	87.74M

Aquafil SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.59
• 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:ECNL, the sentiment is Positive. The current price of 1.59 is above the 20-day moving average (MA) of 1.46, above the 50-day MA of 1.41, and above the 200-day MA of 1.35, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 69.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:ECNL.

Aquafil SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
ECNL	49 Neutral	€138.01M	―	-9.28%	―	-2.47%	61.58%
0KHH	―	€115.34M	―	-25.42%	―	―	―
0HPP	―	€115.67M	10.43	17.35%	―	―	―
FPE	70 Neutral	€228.94M	26.91		2.06%	9.98%	-16.79%
PTR	―	€57.24M	3.05		―	―	―
RFG	―	€131.47M	22.71		1.89%	―	―