Aquafil SpA (ECNL) AI Stock Analysis

• Market Cap: €114.38M
• Dividend Yield: N/A
• Average Volume (3M): 162.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -2.47%
• EPS Growth: 61.58%
• Country: IT
• Employees: 2,498
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.00
• Shares Outstanding: 73,172,200
• 10 Day Avg. Volume: 83,077
• 30 Day Avg. Volume: 162,973
• PEG Ratio: 0.06
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.02
• 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: €1.85
• Price Target Upside: 39.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: €1.50 ▲(12.78%Upside)

Aquafil SpA's overall stock score reflects significant financial challenges, particularly in profitability and leverage. While technical indicators show some positive momentum, the negative P/E ratio and lack of dividend yield raise valuation concerns. Improvements in financial stability are necessary.

Positive Factors

Financial Performance

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

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.

Revenue Performance

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

Negative Factors

Earnings Report

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 manufacturing and sale of polyamide yarns and fibers, particularly its ECONYL® brand. The company's business model focuses on creating high-quality, sustainable products from recycled materials, which it sells to manufacturers in the fashion, textile, and flooring industries. Key revenue streams include direct sales of its nylon products to businesses and partnerships with companies that use ECONYL® in their products. Significant collaborations with major brands in the fashion and interior design sectors also contribute to Aquafil's earnings, as these partnerships enhance the visibility and demand for its sustainable materials.

Aquafil SpA Financial Statement Overview

Summary

Aquafil SpA faces significant financial challenges, with declining revenues and profitability impacting its operations. The company's high leverage and negative return on equity are concerns, although its cash flow generation shows some resilience. Strategic measures may be required to improve operational efficiency and financial stability in the Apparel & Luxury industry.

Income Statement

Aquafil SpA's income statement reveals a challenging period, with a declining revenue trend and negative net income in recent years. The gross profit margin decreased significantly from 29.8% in 2022 to 20.2% in 2024. EBIT and EBITDA margins have also been under pressure, with EBIT turning negative in 2023 and 2024, indicating operating difficulties. The net profit margin has deteriorated from a positive 4.3% in 2022 to a negative 3.0% in 2024, highlighting profitability challenges.

Balance Sheet

The balance sheet of Aquafil SpA shows high leverage, with the debt-to-equity ratio increasing from 0.47 in 2022 to 2.17 in 2024, suggesting increased financial risk. However, the equity ratio has slightly improved from 24.2% in 2022 to 24.2% in 2024. Return on equity has been negative in recent years, reflecting poor profitability. Despite the challenges, the company's cash position remains relatively stable.

Cash Flow

Aquafil SpA's cash flow statement shows some resilience, with free cash flow remaining positive in 2024 despite a significant drop from previous years. The operating cash flow to net income ratio was strong in 2023 but has deteriorated in 2024, indicating reduced cash-generating efficiency. The free cash flow to net income ratio has also been volatile, reflecting potential cash flow management issues.

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
	EBIT
-3.38M	-8.86M	37.56M	21.48M	8.78M
	EBITDA
56.02M	39.84M	92.79M	63.98M	51.21M
	Net Income Common Stockholders
-16.31M	-25.85M	29.15M	10.67M	595.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.37M	163.37M	120.65M	153.52M	209.79M
	Total Assets
655.26M	701.22M	724.96M	668.67M	679.70M
	Total Debt
343.77M	411.90M	83.15M	332.39M	427.48M
	Net Debt
213.41M	254.24M	-27.54M	179.74M	218.53M
	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
-24.21M	-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: Negative
• Last Price: 1.33
• 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 1.33 is below the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.33, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 12.53 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
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
ECNL	54 Neutral	€114.38M	―	-9.28%	―	-2.47%	61.58%
0KHH		€111.68M	―	-38.29%	―	―	―
0HPP		€114.20M	8.97	17.35%	―	―	―
FPE		€208.42M	24.97		1.91%	―	―
PTR		€61.43M	3.05		―	―	―
RFG		€126.26M	21.72		1.70%	―	―