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

• Market Cap: €940.21M
• Dividend Yield: 3.58%
• Average Volume (3M): 74.28K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.94
• Revenue Growth: -18.26%
• EPS Growth: 6.79%
• Country: IT
• Employees: 2,080
• Sector: Industrials
• Sector Strength: 90
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 80,222,900
• 10 Day Avg. Volume: 81,119
• 30 Day Avg. Volume: 74,284
• PEG Ratio: 6.94
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.26
• 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: €13.05
• Price Target Upside: 12.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: €12.50 ▲(7.30%Upside)

El.En. S.p.A. earns a strong overall stock score due to its solid financial performance and favorable technical indicators. The company's robust cash flow and operational efficiency position it well for sustained growth, while its stock benefits from bullish momentum. Despite minor valuation concerns, the stock remains appealing due to its reasonable P/E ratio and dividend yield.

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.

Business Focus

The management can now fully focus on the company's profitable activities following the completion of the disposal process.

Financial Position

The company is in a strong financial position with a large cash reserve, representing a significant portion of its current market cap.

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. engages in the research and development, manufacture, distribution, and sale of laser systems in Europe and internationally. The company offers medical laser equipment for use in the fields of physiotherapy, orthopedics, traumatology, rheumatology, dermatology, sports and rehabilitative medicines, surgery, aesthetics, and art; and laser sources and systems for cutting, welding, marking, and engraving on countless materials. It also provides laser sources that include liquid, solid, semiconductor, and gas; and after-sales services, such as supplying of spare parts, as well as consulting and technical assistance services. The company was founded in 1981 and is headquartered in Calenzano, Italy.

How the Company Makes Money

El.En. S.p.A. generates revenue primarily through the sale of its laser systems across different sectors. In the medical segment, the company sells laser devices for dermatology, surgery, and other medical applications to hospitals, clinics, and private practices. In the industrial segment, El.En. provides laser systems for manufacturing processes like cutting and welding, serving industries such as automotive, electronics, and textiles. The company also delivers after-sales services, including maintenance and spare parts, which contribute to its revenue. Additionally, El.En. engages in research and development to innovate and expand its product offerings, maintaining competitive advantages and fostering long-term partnerships with key clients.

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: Positive
• Last Price: 11.65
• 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 Positive. The current price of 11.65 is above the 20-day moving average (MA) of 11.30, above the 50-day MA of 10.80, and above the 200-day MA of 10.44, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 57.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
ELN	78 Outperform	€940.21M	18.18	16.98%	3.58%	-18.26%	6.79%
Sector *	65 Neutral	$10.94B	15.63	5.18%	2.37%	3.14%	-27.13%
0DUK	―	€209.90M	56.51	1.43%	2.34%	―	―
0E3C	―	€238.46M	113.70	0.50%	5.47%	―	―
0EKI	―	€147.32M	12.75	11.38%	8.87%	―	―
LUVE	71 Outperform	€728.37M	23.30		2.50%	―	―
AV	54 Neutral	€325.24M	―		―	-1.20%	―