EMAK SPA (EM) AI Stock Analysis

• Market Cap: €165.17M
• Dividend Yield: 2.48%
• Average Volume (3M): 151.96K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.78
• Revenue Growth: 7.80%
• EPS Growth: -0.57%
• Country: IT
• Employees: 2,374
• Sector: Services
• Sector Strength: N/A
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.05
• Shares Outstanding: 163,934,830
• 10 Day Avg. Volume: 157,673
• 30 Day Avg. Volume: 151,956
• PEG Ratio: -0.35
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 16.92
• 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: €1.60
• Price Target Upside: 58.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: €1.00 ▼(-0.99% Downside)

The overall stock score of 70 reflects a balanced outlook. The most significant factor is the stable financial performance, despite some profitability challenges. Technical analysis supports a positive short-term trend, while valuation metrics indicate fair pricing with a reasonable dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Diversified Revenue Streams

Diversified revenue streams across sectors like water treatment and industrial cleaning reduce dependency on any single market, enhancing resilience.

Strategic Partnerships

Partnerships with distributors and industry players expand market reach and facilitate entry into new markets, supporting long-term growth.

Research and Development

Continuous investment in R&D fosters innovation, leading to new products and services that can drive future growth and competitive advantage.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate rising costs and operational inefficiencies, which can impact long-term profitability and competitiveness.

Cash Flow Challenges

Reduced free cash flow suggests potential liquidity issues, limiting the company's ability to invest in growth and manage financial obligations.

Reduced Return on Equity

A decline in return on equity indicates less efficient use of shareholder funds, potentially affecting investor confidence and capital raising ability.

EMAK SPA Business Overview & Revenue Model

Company Description

EMAK SPA (EM) is a global leader in the manufacturing and distribution of advanced industrial and consumer products, primarily focusing on the water and chemicals sectors. The company specializes in developing innovative solutions for water treatment, industrial cleaning, and surface preparation. EMAK SPA's core offerings include a range of products designed to meet the demands of various industries, including agriculture, automotive, and construction, thereby enhancing operational efficiency and sustainability.

How the Company Makes Money

EMAK SPA generates revenue through a diversified portfolio of products and services across multiple sectors. The primary revenue streams include the sale of proprietary water treatment chemicals, industrial cleaning agents, and specialized surface preparation products. Additionally, the company offers consulting services and tailored solutions to businesses seeking to optimize their use of EMAK's products. Strategic partnerships with key distributors and industry players enhance their market reach and enable EMAK to enter new markets effectively. Furthermore, the company invests in research and development to innovate and expand its product line, driving recurring revenue through long-term contracts and repeat business from existing clients.

EMAK SPA Financial Statement Overview

Summary

EMAK SPA demonstrates stability with a sound balance sheet and manageable leverage, although profitability indicators have weakened. The decline in both gross and net profit margins highlights cost management challenges, while cash flow reduction points to potential liquidity concerns. Strategic measures to boost operational efficiency and profit margins could enhance financial performance.

Income Statement

The income statement indicates a stable revenue base with a modest growth rate of 6.3% from 2023 to 2024. However, there is a decline in gross profit margin to 19.6% from 47.5% in the previous year, indicating increased cost pressures. Net profit margin also decreased to 1% from 3.4%, reflecting declining profitability. The EBIT and EBITDA margins also showed a downward trend, suggesting operational challenges.

Balance Sheet

The balance sheet is stable with an equity ratio of 38.6% and a debt-to-equity ratio of 0.99, indicating balanced leverage. Return on equity decreased to 2.1% from 6.8% in the previous year, suggesting reduced efficiency in generating returns on shareholders' equity. Overall, the financial health remains solid with a strong equity base and managed leverage.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow by 75.1%, reflecting challenges in maintaining cash reserves. The operating cash flow to net income ratio stands at 5.67, indicating strong cash generation relative to net income, which cushions against profit fluctuations. However, the free cash flow to net income ratio of 1.48 is reduced, signaling potential stress in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	625.89M	601.91M	566.32M	605.72M	588.30M	469.78M
Gross Profit	209.41M	117.81M	269.04M	287.13M	282.33M	221.77M
EBITDA	69.19M	59.78M	69.10M	76.42M	73.76M	51.79M
Net Income	11.44M	5.75M	19.07M	30.27M	32.51M	19.30M
Balance Sheet
Total Assets	722.46M	715.51M	688.00M	679.12M	658.15M	587.02M
Cash, Cash Equivalents and Short-Term Investments	71.16M	69.17M	75.72M	86.52M	79.72M	99.33M
Total Debt	290.25M	272.23M	262.87M	266.98M	212.42M	220.33M
Total Liabilities	436.08M	435.20M	404.34M	402.13M	402.22M	364.72M
Stockholders Equity	281.77M	275.95M	279.35M	273.00M	253.18M	220.14M
Cash Flow
Free Cash Flow	0.00	8.52M	34.27M	-7.68M	12.52M	28.81M
Operating Cash Flow	0.00	32.64M	57.12M	13.67M	29.56M	42.95M
Investing Cash Flow	0.00	-35.70M	-43.90M	-24.73M	-19.64M	-14.77M
Financing Cash Flow	0.00	-7.27M	-20.60M	20.52M	-32.89M	24.59M

EMAK SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:EM, the sentiment is Positive. The current price of 1.01 is below the 20-day moving average (MA) of 1.01, above the 50-day MA of 1.00, and above the 200-day MA of 0.90, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 82.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:EM.

EMAK SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	―	€184.69M	17.22	11.00%	3.40%	4.98%	-6.71%
EM	―	€165.17M	14.37	4.04%	2.48%	7.80%	-0.57%
TWL	―	€14.73M	134.48	―	―	-0.61%	-86.47%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%