EMAK SPA (EM) AI Stock Analysis

• Market Cap: €150.13M
• Dividend Yield: 2.73%
• Average Volume (3M): 89.34K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.76
• 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: 126,431
• 30 Day Avg. Volume: 89,345
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €1.23
• Price Target Upside: 32.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: €1.00 ▲(7.53% Upside)

The overall stock score of 69 reflects a stable financial performance with some profitability challenges, supported by a positive technical outlook and fair valuation. The absence of earnings call data and corporate events does not impact the score, as these components are excluded.

Positive Factors

Earnings

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

Profitability

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

Revenue Growth

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

Negative Factors

Division Performance

The Pumps division's weak margins have negatively impacted overall adjusted EBITDA projections.

EBITDA Margins

Adjusted EBITDA stood at €26.5mn, exceeding the forecast of €25mn by 6%, but concerns remain due to weak margins at the Pumps division.

Financial Performance

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 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

The company shows a stable revenue base with modest growth, but declining gross and net profit margins indicate cost pressures and reduced profitability. Despite a strong balance sheet and manageable leverage, cash flow challenges signal 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	601.91M	566.32M	605.72M	588.30M	469.78M
Gross Profit	117.81M	269.04M	287.13M	282.33M	221.77M
EBITDA	59.78M	69.10M	76.42M	73.76M	51.79M
Net Income	5.75M	19.07M	30.27M	32.51M	19.30M
Balance Sheet
Total Assets	715.51M	688.00M	679.12M	658.15M	587.02M
Cash, Cash Equivalents and Short-Term Investments	69.17M	75.72M	86.52M	79.72M	99.33M
Total Debt	272.23M	262.87M	253.82M	212.42M	220.33M
Total Liabilities	435.20M	404.34M	402.13M	402.22M	364.72M
Stockholders Equity	275.95M	279.35M	273.00M	253.18M	220.14M
Cash Flow
Free Cash Flow	8.52M	34.27M	-7.68M	12.52M	28.81M
Operating Cash Flow	32.64M	57.12M	13.67M	29.56M	42.95M
Investing Cash Flow	-35.70M	-43.90M	-24.73M	-19.64M	-14.77M
Financing Cash Flow	-7.27M	-20.60M	20.52M	-32.89M	24.59M

EMAK SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.93 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.88, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.31 is Neutral, 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	72 Outperform	€150.91M	14.07	11.00%	4.13%	4.98%	-6.71%
EM	69 Neutral	€150.13M	13.06	4.04%	2.73%	7.80%	-0.57%
Sector *	63 Neutral	kr27.06B	8.15	-7.45%	3.62%	6.12%	-105.14%
TWL	49 Neutral	€13.35M	68.90		―	-1.23%	-81.97%