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

• Market Cap: €1.11B
• Dividend Yield: 1.58%
• Average Volume (3M): 100.73K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.86
• Revenue Growth: -18.41%
• EPS Growth: -15.30%
• Country: IT
• Employees: 2,080
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 80,384,550
• 10 Day Avg. Volume: 100,375
• 30 Day Avg. Volume: 100,726
• PEG Ratio: 2.72
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 12.71
• 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: €15.80
• Price Target Upside: 10.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €15.50 ▲(8.39% Upside)

El.En. S.p.A. demonstrates strong financial performance with robust revenue growth and operational efficiency. The technical analysis indicates bullish momentum, although overbought signals suggest caution. The valuation is moderate, with a P/E ratio indicating limited upside without further earnings growth. Overall, the company is well-positioned in its industry, but investors should be mindful of potential short-term volatility.

Positive Factors

Diversified end-market exposure

Serving medical, industrial and aesthetic markets gives El.En. durable revenue diversification across cyclicality and regulatory cycles. Broad product set and international subsidiaries reduce single-market dependence, supporting steadier demand and scalable global distribution over years.

Strong cash generation

Free cash flow recovery indicates improved core cash conversion and operational discipline. Persistent positive FCF enhances ability to fund R&D, service debt, invest in product development and aftermarket capacity, reducing refinancing risk and enabling strategic reinvestment over the medium term.

Robust margins and operational efficiency

Sustained strong gross and operating margins point to pricing power and efficient production processes. Margin durability supports profitability through revenue cycles, funds R&D and aftermarket expansion, and provides a cushion against input cost shocks, reinforcing long-term competitiveness.

Negative Factors

Recent revenue decline

A near-term ~18% revenue contraction signals weakening orders or postponed capex from customers. If this decline persists it can compress operating leverage, limit reinvestment and slow market share gains in key segments, making recovery dependent on renewed end-market spending.

Earnings weakness

Declining EPS reduces internal funding capacity and may constrain dividends or share of R&D budget. Continued earnings erosion can pressure return on equity and restrict strategic initiatives, forcing tougher tradeoffs between capex, aftermarket investment and balance sheet prioritization.

Capital-equipment cyclicality exposure

Heavy reliance on capital equipment sales makes revenues lumpy and tied to customer capex cycles in healthcare and industry. While maintenance and consumables add recurring streams, they may not fully offset cyclical order volatility, raising sensitivity to macro and sector-specific investment trends.

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 and related services. Key revenue streams include medical devices, industrial lasers, and aesthetic laser equipment. The company benefits from recurring revenue through maintenance contracts and consumables for its systems. Additionally, strategic partnerships with healthcare providers and distributors enhance its market reach and sales capabilities. El.En. also invests in research and development to innovate and expand its product offerings, which contributes to its competitive edge and revenue 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	384.96M	565.85M	692.29M	673.58M	571.40M	408.08M
Gross Profit	178.69M	238.80M	252.08M	243.47M	206.09M	135.90M
EBITDA	86.99M	97.35M	83.94M	90.71M	76.59M	37.18M
Net Income	52.62M	51.61M	48.24M	55.11M	45.44M	20.26M
Balance Sheet
Total Assets	700.97M	740.72M	719.21M	735.89M	650.69M	470.37M
Cash, Cash Equivalents and Short-Term Investments	131.25M	157.49M	135.36M	165.13M	182.45M	123.74M
Total Debt	40.54M	46.72M	73.63M	82.92M	60.50M	54.59M
Total Liabilities	294.69M	329.92M	343.75M	379.25M	362.99M	229.71M
Stockholders Equity	383.29M	385.02M	346.03M	313.19M	269.37M	225.42M
Cash Flow
Free Cash Flow	62.47M	73.61M	-1.14M	-16.31M	63.35M	33.62M
Operating Cash Flow	68.12M	83.07M	12.22M	2.12M	79.48M	44.13M
Investing Cash Flow	-18.51M	68.68K	-16.97M	-30.15M	-20.23M	-8.73M
Financing Cash Flow	-61.27M	-47.99M	-24.79M	10.25M	-3.51M	-8.66M

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

• Technical Analysis Sentiment: Positive
• Last Price: 14.30
• 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 14.3 is above the 20-day moving average (MA) of 14.19, above the 50-day MA of 13.55, and above the 200-day MA of 11.66, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 33.65 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	68 Neutral	€1.11B	26.28	15.29%	1.58%	-18.41%	-15.30%
GE	66 Neutral	€152.35M	15.33	9.97%	4.10%	3.69%	-19.49%
LUVE	66 Neutral	€897.14M	25.04	―	1.08%	―	―
DAL	57 Neutral	€221.56M	78.07	0.71%	2.64%	0.19%	-76.65%
BSS	56 Neutral	€169.90M	-23.70	-2.86%	0.57%	-10.59%	-132.80%
AV	54 Neutral	€359.08M	-36.47	―	―	7.94%	91.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%