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

• Market Cap: €899.49M
• Dividend Yield: 1.73%
• Average Volume (3M): 100.73K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.94
• Revenue Growth: -18.41%
• EPS Growth: -15.30%
• Country: IT
• Employees: 2,080
• Sector: Technology
• Sector Strength: 88
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 80,239,700
• 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: 22.58% 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: €14.00 ▲(8.61% 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

Cash Flow Management

Strong cash flow management and positive free cash flow growth enable El.En. to reinvest in growth opportunities and service debt efficiently, supporting long-term financial stability.

Operational Efficiency

High operational efficiency, as indicated by robust EBIT and EBITDA margins, enhances profitability and competitiveness, ensuring sustained business performance in the long term.

Product Innovation

El.En.'s commitment to R&D and product innovation positions it well to meet emerging market demands, driving future revenue growth and maintaining its competitive edge in the laser technology market.

Negative Factors

Revenue Decline

A recent decline in revenue growth poses a challenge to maintaining momentum, potentially impacting future profitability and market positioning if not addressed.

Liability Increase

An increase in liabilities requires careful monitoring to ensure financial health is maintained, as excessive debt could limit strategic flexibility and increase financial risk.

Earnings Growth Decline

A decline in earnings growth indicates potential challenges in maintaining profitability, which could impact investor confidence and the company's ability to fund future growth initiatives.

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

Company Description

El.En. S.p.A. (ELN) is an Italian company specializing in the development and production of laser systems for various applications, including medical, industrial, and aesthetic sectors. Established in 1981, El.En. has grown to become a leader in the laser technology market, offering a wide range of products such as laser cutting and welding systems, medical lasers for surgery and dermatology, and aesthetic laser devices. The company operates through multiple subsidiaries and has a strong international presence, catering to diverse industries with innovative solutions.

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, 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	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: 12.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 12.89 is above the 20-day moving average (MA) of 11.82, above the 50-day MA of 11.61, and above the 200-day MA of 10.78, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 74.26 is Negative, neither overbought nor oversold. The STOCH value of 94.54 is Negative, 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
GE	69 Neutral	€173.19M	16.15	9.97%	3.86%	3.69%	-19.49%
ELN	68 Neutral	€899.49M	21.27	15.29%	1.73%	-18.41%	-15.30%
LUVE	68 Neutral	€788.33M	25.15	―	1.06%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BSS	56 Neutral	€152.91M	-21.19	-2.86%	0.57%	-10.59%	-132.80%
AV	54 Neutral	€361.93M	-36.76	―	―	7.94%	91.30%
DAL	53 Neutral	€238.73M	58.63	0.71%	2.67%	0.19%	-76.65%