Aquafil SpA (ECNL) AI Stock Analysis

• Market Cap: €160.61M
• Dividend Yield: N/A
• Average Volume (3M): 301.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -3.18%
• EPS Growth: 61.77%
• Country: IT
• Employees: 2,498
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.02
• Shares Outstanding: 73,172,200
• 10 Day Avg. Volume: 388,480
• 30 Day Avg. Volume: 301,517
• PEG Ratio: 0.11
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 52.28
• 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: €1.80
• Price Target Upside: 35.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: €1.50 ▲(12.78% Upside)

Aquafil SpA's stock is currently rated low due to significant financial challenges, including declining revenues and high leverage. The technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Sustainability Focus

Aquafil's focus on sustainability and recycling processes positions it well to capitalize on the growing demand for eco-friendly products, providing a durable competitive advantage.

Strategic Partnerships

Strategic partnerships with fashion brands enhance Aquafil's market presence and sales, supporting long-term revenue growth and brand recognition in the sustainable materials sector.

Eco-Friendly Product Demand

Increasing consumer preference for eco-friendly products boosts Aquafil's sales potential, ensuring sustained demand for its recycled nylon products and supporting revenue stability.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting Aquafil's ability to invest in growth opportunities and manage economic downturns.

Declining Revenue

A declining revenue trend suggests challenges in maintaining market share and competitiveness, which could hinder long-term growth and financial stability.

Profitability Issues

Negative net profit margins indicate operational inefficiencies and profitability challenges, which could affect Aquafil's ability to reinvest in its business and sustain growth.

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 through the manufacture and sale of nylon products, particularly through its Econyl brand, which is derived from recycled materials. Key revenue streams include direct sales to textile manufacturers, partnerships with fashion brands for sustainable product lines, and collaborations with automotive companies for high-performance materials. The company's focus on sustainability has attracted significant partnerships and contracts, boosting its market presence and sales. Additionally, Aquafil benefits from rising consumer demand for eco-friendly products, which further enhances its financial performance.

Aquafil SpA Financial Statement Overview

Summary

Aquafil SpA faces significant financial challenges with declining revenues, negative profitability, high leverage, and limited cash generation. Despite some positive cash flow growth, overall financial health is concerning.

Income Statement

Aquafil SpA's income statement reveals significant challenges. The company has experienced declining revenue growth, with a notable drop of 32.3% in the TTM period. Margins are under pressure, with a negative net profit margin of -1.47% and a low EBIT margin of 1.55%. Despite a decent gross profit margin of 30.52%, the overall profitability is weak, indicating operational inefficiencies and competitive pressures in the industry.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.44 in the TTM period, indicating significant leverage and potential financial risk. Return on equity is negative at -5.69%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 22.19%, suggesting a moderate level of equity financing, but the high debt levels pose a risk to financial stability.

Cash Flow

Cash flow analysis indicates some improvement, with a positive free cash flow growth rate of 129.44% in the TTM period. However, the free cash flow to net income ratio is negative, highlighting ongoing profitability issues. The operating cash flow to net income ratio is low at 7.34%, suggesting limited cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	537.08M	542.13M	571.81M	684.90M	570.31M	446.87M
Gross Profit	237.81M	109.49M	159.55M	204.31M	180.22M	156.81M
EBITDA	60.71M	56.02M	39.84M	92.79M	63.98M	51.21M
Net Income	-7.11M	-16.31M	-25.85M	29.15M	10.67M	595.00K
Balance Sheet
Total Assets	641.48M	655.26M	701.22M	724.96M	668.67M	679.70M
Cash, Cash Equivalents and Short-Term Investments	158.38M	130.37M	163.37M	120.65M	153.52M	209.79M
Total Debt	4.74M	343.77M	411.90M	368.53M	332.39M	427.48M
Total Liabilities	506.74M	496.91M	575.96M	549.55M	516.56M	552.80M
Stockholders Equity	134.75M	158.35M	125.25M	175.40M	152.10M	126.90M
Cash Flow
Free Cash Flow	-156.00K	1.47M	35.90M	-52.15M	49.44M	32.39M
Operating Cash Flow	24.27M	23.25M	69.58M	-13.12M	89.05M	60.26M
Investing Cash Flow	-23.91M	-24.03M	-33.22M	-38.63M	-40.25M	-29.45M
Financing Cash Flow	58.17M	-26.52M	10.62M	9.78M	-105.10M	87.74M

Aquafil SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:ECNL, the sentiment is Negative. The current price of 1.33 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.70, and below the 200-day MA of 1.50, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 29.14 is Positive, neither overbought nor oversold. The STOCH value of 5.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:ECNL.

Aquafil SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	72 Outperform	€205.19M	16.59	―	2.30%	40.64%	104.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GEO	43 Neutral	€117.72M	-4.45	-25.42%	―	-5.49%	-62.25%
ECNL	41 Neutral	€160.61M	-12.48	-6.12%	―	-3.18%	61.77%