EMAK SPA (EM) AI Stock Analysis

• Market Cap: €139.50M
• Dividend Yield: 2.55%
• Average Volume (3M): 125.65K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.71
• Revenue Growth: 10.53%
• EPS Growth: -41.19%
• Country: IT
• Employees: 2,374
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.07
• Shares Outstanding: 163,934,830
• 10 Day Avg. Volume: 44,275
• 30 Day Avg. Volume: 125,652
• PEG Ratio: -1.26
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.82
• 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: €1.45
• Price Target Upside: 70.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: €1.00 ▲(17.65%Upside)

The overall stock score reflects the stable financial performance and reasonable valuation of EMAK SPA. However, the bearish technical indicators highlight potential challenges in the short-term. The absence of significant earnings call data or corporate events leaves the analysis focused primarily on financials and technicals.

Positive Factors

Earnings Performance

1Q25 results came in ahead of expectations, largely thanks to the particularly strong performance of the Outdoor Power Equipment segment.

Revenue Growth

Revenues reached €192.3mn, marking a 13.1% YoY increase and surpassing the projected €185.5mn by 3.7%.

Negative Factors

Financial Performance

Net profit came in at €11mn, 13% above expectations of €9.7mn and representing a €3.4mn YoY improvement.

Profitability Challenges

Adjusted EBITDA came in significantly below projections, largely driven by weak margins at the Pumps division.

EMAK SPA Business Overview & Revenue Model

Company Description

EMAK S.p.A. is a leading international company headquartered in Italy, specializing in the production and distribution of outdoor power equipment, components, and accessories. The company operates in three main sectors: Outdoor Power Equipment, Pumps and High Pressure Water Jetting, and Components and Accessories. EMAK's core products include chainsaws, lawnmowers, brush cutters, and agricultural machinery, which are essential for gardening, forestry, and agriculture industries.

How the Company Makes Money

EMAK S.p.A. generates revenue primarily through the sale of its products across its three main sectors. The Outdoor Power Equipment segment contributes significantly to its earnings, driven by the global demand for gardening and forestry tools. The company also makes money from its Pumps and High Pressure Water Jetting segment by providing specialized equipment for industrial cleaning and maintenance. The Components and Accessories segment further diversifies its revenue stream by offering spare parts and accessories that complement its main product lines. EMAK's strategic partnerships and distribution networks across various countries enhance its market reach, ensuring a steady flow of income from different regions.

EMAK SPA Financial Statement Overview

Summary

The company shows stability with a strong balance sheet and manageable leverage. However, profitability indicators have weakened with declining gross and net profit margins, highlighting cost management challenges. Cash flow reduction raises potential liquidity concerns.

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
580.60M	601.91M	566.32M	605.72M	588.30M	469.78M
	Gross Profit
166.08M	117.81M	269.04M	287.13M	282.33M	221.77M
	EBIT
30.25M	25.30M	37.22M	46.76M	52.90M	32.94M
	EBITDA
61.63M	59.78M	69.10M	76.42M	73.76M	51.79M
	Net Income Common Stockholders
11.51M	5.75M	19.07M	30.27M	32.51M	19.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.67M	69.17M	75.72M	86.52M	79.72M	99.33M
	Total Assets
748.70M	715.51M	688.00M	679.12M	658.15M	587.02M
	Total Debt
298.49M	272.23M	262.87M	253.82M	212.42M	220.33M
	Net Debt
214.82M	203.06M	187.21M	167.34M	132.77M	121.04M
	Total Liabilities
459.24M	435.20M	404.34M	402.13M	402.22M	364.72M
	Stockholders Equity
285.13M	275.95M	279.35M	273.00M	253.18M	220.14M
Cash Flow		Free Cash Flow
14.67M	8.52M	34.27M	-7.68M	12.52M	28.81M
	Operating Cash Flow
14.67M	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: Negative
• Last Price: 0.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:EM, the sentiment is Negative. The current price of 0.85 is below the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.84, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 11.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:EM.

EMAK SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	79 Outperform	€146.60M	12.68	11.38%	4.21%	3.43%	-0.61%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
EM	63 Neutral	€139.50M	15.20	3.19%	2.55%	10.53%	-41.19%