Aquafil SpA (ECNL) AI Stock Analysis

• Market Cap: €119.04M
• Dividend Yield: N/A
• Average Volume (3M): 301.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• 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: 30.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: €1.50 ▲(8.70% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

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

Recycling leadership (Econyl)

Aquafil's Econyl recycling technology is a durable competitive advantage: it secures feedstock, underpins premium sustainable products, strengthens brand partnerships, and aligns with long-term regulatory and consumer shifts toward circular materials, supporting recurring demand and contract opportunities.

Diversified end-market exposure

Exposure to textiles, automotive and industrial markets reduces single-market cyclicality and supports steadier structural demand. Automotive and industrial applications can offer technical specifications and longer-term OEM contracts, enhancing revenue stability and long-term customer stickiness compared with single-sector peers.

Operating cash flow maintained

Despite profitability pressures, sustained operating cash flow provides a durable buffer to fund working capital and essential operations. This cash generation capacity supports short-term liquidity and gives management runway to execute restructuring or invest selectively in recycling capacity to restore margins over months.

Negative Factors

Declining revenue and margin compression

Falling revenue and shrinking margins impair scale economics and long-term profitability. Persistent top-line decline reduces funds for R&D and capital investment in recycling tech, weakens pricing leverage, and makes sustainable margin recovery dependent on structural operational improvements or favorable product mix shifts.

High leverage and weak equity base

Significant leverage and a low equity ratio increase refinancing and solvency risk, constraining strategic flexibility. High interest burden limits capacity to invest in efficiency or growth initiatives, while a weak equity base amplifies downside in stress scenarios and reduces ability to pursue accretive partnerships or capex.

Negative free cash flow growth

Persistent negative FCF growth erodes liquidity and forces reliance on external financing or asset sales to fund operations. Over time this limits ability to deleverage, invest in process improvements, or scale sustainable product lines, making a durable recovery contingent on restoring positive cash conversion.

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 is facing financial challenges with declining revenues and profitability issues. The high leverage and negative returns on equity are concerning, and the cash flow situation requires careful management. The company needs to focus on improving operational efficiency and reducing debt to enhance financial stability.

Income Statement

Aquafil SpA's income statement shows a declining trend in revenue with a significant drop in the TTM period. The gross profit margin has decreased from previous years, and the company is currently experiencing negative net profit margins, indicating profitability challenges. The EBIT and EBITDA margins are low, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is low, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate in the TTM period, which is concerning. The operating cash flow to net income ratio is low, indicating potential cash flow issues. However, the company has managed to maintain some level of operating cash flow, which is a positive aspect.

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: 1.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1.38 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.39, and below the 200-day MA of 1.53, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.87 is Neutral, neither overbought nor oversold. The STOCH value of 11.28 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	€226.54M	18.25	―	2.17%	40.64%	104.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GEO	43 Neutral	€107.84M	-4.07	-25.42%	―	-5.49%	-62.25%
ECNL	41 Neutral	€119.04M	-11.31	-6.12%	―	-3.18%	61.77%