El.En. S.p.A. (ELN) AI Stock Analysis

• Market Cap: €941.07M
• Dividend Yield: 1.88%
• Average Volume (3M): 85.71K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.95
• Revenue Growth: -18.26%
• EPS Growth: 6.79%
• Country: IT
• Employees: 2,080
• Sector: Technology
• Sector Strength: 97
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 80,227,900
• 10 Day Avg. Volume: 72,878
• 30 Day Avg. Volume: 85,714
• 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: €13.20
• Price Target Upside: 12.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: €13.50 ▲(15.09% Upside)

El.En. S.p.A.'s strong financial performance and positive technical indicators significantly support the stock's potential, despite its moderate valuation and overbought technical signals suggesting caution. The absence of earnings call data and notable corporate events limits the analysis to the financial and market data provided.

Positive Factors

Asset Disposal

The disposal of the Chinese subsidiary Penta Laser Zhejiang is seen as a positive catalyst for the stock, eliminating uncertainty regarding the Chinese assets.

Financial Performance

1Q results above expectations across all metrics, with revenue up 8.8% thanks to solid performances in both the medical and industrial divisions.

Profitability

Profitability is on the rise, with improvements in gross margin driven by a better sales mix in the medical division.

Negative Factors

Industrial Segment Performance

The industrial segment, including China, declined by -33%, well below the -9% estimate.

El.En. S.p.A. Business Overview & Revenue Model

Company Description

El.En. S.p.A. (ELN) is an Italian company that specializes in the design, production, and marketing of laser systems for industrial, medical, and aesthetic applications. Founded in 1981, the company operates in various sectors including healthcare, manufacturing, and telecommunications, offering a wide range of core products such as laser cutting machines, medical lasers for surgery and dermatology, and systems for plastic welding. El.En. is known for its innovation and high-quality solutions, making it a key player in the laser technology market.

How the Company Makes Money

El.En. S.p.A. generates revenue primarily through the sale of its laser systems and related services. The company has multiple key revenue streams, including the sale of industrial laser systems for cutting and welding, medical laser devices for surgical and aesthetic applications, and ongoing maintenance and support services. Additionally, El.En. benefits from partnerships with healthcare providers and industrial manufacturers, which help expand its market reach and enhance its service offerings. The company's focus on research and development also allows it to introduce new products that meet emerging market demands, contributing to its earnings growth.

El.En. S.p.A. Financial Statement Overview

Summary

El.En. S.p.A. displays a solid financial position with strengths in revenue growth and operational efficiency. The company maintains a balanced approach to leverage and demonstrates strong cash flow management. While there are minor concerns regarding the recent dip in revenue, the company is well-positioned in the medical equipment and supplies industry, with potential for sustained growth and profitability.

Income Statement

El.En. S.p.A. demonstrates a strong income statement with consistent revenue growth over the years. The gross profit margin has remained robust, indicating efficient production and cost management. While the net profit margin is solid, the slight decrease in revenue in the most recent year indicates a potential challenge in sustaining growth momentum. EBIT and EBITDA margins reflect strong operational efficiency.

Balance Sheet

The company's balance sheet is stable with a healthy equity ratio and manageable debt levels. The debt-to-equity ratio suggests prudent leverage, while the return on equity indicates effective use of shareholder funds. However, a slight increase in total liabilities over the years signals a need for careful monitoring of financial health.

Cash Flow

El.En. S.p.A. shows impressive cash flow management with a strong free cash flow growth rate, turning from negative to positive in recent years. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to profits. The company's ability to generate free cash flow supports its capability to reinvest in growth and service debt.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	565.85M	692.29M	673.58M	571.40M	408.08M
Gross Profit	238.80M	252.08M	243.47M	206.09M	135.90M
EBITDA	97.35M	83.94M	90.71M	76.59M	37.18M
Net Income	51.61M	48.24M	55.11M	45.44M	20.26M
Balance Sheet
Total Assets	740.72M	719.21M	735.89M	650.69M	470.37M
Cash, Cash Equivalents and Short-Term Investments	157.49M	135.36M	165.13M	182.45M	123.74M
Total Debt	46.72M	73.63M	69.74M	60.50M	54.59M
Total Liabilities	329.92M	343.75M	379.25M	362.99M	229.71M
Stockholders Equity	385.02M	346.03M	319.96M	269.37M	225.42M
Cash Flow
Free Cash Flow	73.61M	-1.14M	-16.31M	63.35M	33.62M
Operating Cash Flow	83.07M	12.22M	2.12M	79.48M	44.13M
Investing Cash Flow	68.68K	-16.97M	-30.15M	-20.23M	-8.73M
Financing Cash Flow	-47.99M	-24.79M	10.35M	-3.51M	-8.66M

El.En. S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:ELN, the sentiment is Neutral. The current price of 11.73 is below the 20-day moving average (MA) of 11.83, above the 50-day MA of 11.31, and above the 200-day MA of 10.53, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 42.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:ELN.

El.En. S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	72 Outperform	€150.91M	14.07	11.00%	4.13%	4.98%	-6.71%
LUVE	71 Outperform	€721.71M	23.08		1.29%	―	―
ELN	71 Outperform	€941.07M	18.19	16.98%	1.88%	-18.26%	6.79%
Sector *	63 Neutral	€2.32B	20.54	4.63%	2.75%	5.30%	-63.21%
BSS	55 Neutral	€206.62M	52.34	-2.86%	0.52%	-10.59%	-132.80%
AV	54 Neutral	€353.38M	―		―	-1.20%	―
DAL	53 Neutral	€223.44M	54.87	1.01%	2.84%	1.44%	-46.55%