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Fincantieri S.p.A. (IT:FCT)
:FCT

Fincantieri S.p.A. (FCT) AI Stock Analysis

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Fincantieri S.p.A.

(LSE:FCT)

Rating:63Neutral
Price Target:
€15.50
▼(-0.83%Downside)
Fincantieri S.p.A.'s stock score is primarily influenced by its improving financial performance and strong technical analysis indicators. However, high leverage and poor valuation metrics due to a negative P/E ratio significantly impact the overall score. The stock shows potential for recovery, but risks remain in need of addressing.
Positive Factors
Dividend Prospects
The 2025 guidance shows further progression expected on BP targets, over-delivering on deleverage and with a potential return to dividend distribution.
Financial Health
The new net debt guidance implies an improvement of €200m, indicating better financial health.
Financial Performance
The company's FY24 results were broadly in line with expectations, with solid progression on profitability and strong delivery on deleverage and bottom line improvements.
Revenue Growth
The company is showing positive progression in Offshore, with revenues up by 47% in the quarter, accelerating compared to previous quarters.
Negative Factors
Debt Levels
Guidance has been improved on revenues, now seen in excess of €8.0bn, and on leverage ratio, now between 4.5x and 5.0x.
Market Competition
Strong opportunities are noted in the defense market, particularly in South-East Asia, the Middle-East, and Western countries like Norway, indicating increasing competition.

Fincantieri S.p.A. (FCT) vs. iShares MSCI Italy ETF (EWI)

Fincantieri S.p.A. Business Overview & Revenue Model

Company DescriptionFincantieri S.p.A. operates in the shipbuilding industry worldwide. It operates in three segments: Shipbuilding; Offshore and Specialized Vessels; and Equipment, Systems and Infrastructure. The Shipbuilding segment designs and constructs cruise ships; expedition cruise vessels; naval vessels, such as aircraft carriers, destroyers, frigates, corvettes, patrol vessels, amphibious and logistic support ships, multirole and research vessels, special vessels, and submarines, as well as product lifecycle management, and training and assistance services; ship interiors comprising cabins, wet units, public areas, catering, glazing, and interior design solutions; and ship repairs, refitting, conversions, and refurbishment services. The Offshore and Specialized Vessels segment designs and constructs high-end offshore support vessels for offshore wind farms, and the oil and gas industry; specialized ships, such as cable-laying vessels and ferries; and unmanned vessels. The Equipment, Systems and Infrastructure segment offers energy generation/storage systems, such as electrical, electronic and electromechanical integrated systems, and entertainment systems; stabilization, propulsion, positioning, and power generation systems; and steam turbines, as well as designs and integrates systems with a focus on automation, cyber security, telecommunications, and critical infrastructures. This segment also is also involved in the design, construction, and assembly of steel structures on large project, including bridges, viaducts, airports, ports, maritime/hydraulic works, and large commercial and industrial buildings. The company provides dry-dock management; engineering, project, and supply chain management; information technology consultancy; mechanical products sale and after-sale; marine diesel engine maintenance; technological research and development; ship accommodation services; and charters boats, ships, and barges. The company was founded in 1959 and is headquartered in Trieste, Italy. Fincantieri S.p.A. is a subsidiary of CDP Equity S.p.A.
How the Company Makes MoneyFincantieri S.p.A. generates revenue primarily through the design and construction of a wide range of vessels, including cruise ships, naval ships, and offshore vessels. The company secures contracts from both commercial clients, such as cruise lines and shipping companies, and government entities for naval and defense-related projects. Additionally, Fincantieri offers maintenance, repair, and conversion services for ships, which provide a recurring revenue stream. The company also engages in partnerships and collaborations with other industry leaders to enhance its technological capabilities and expand its market reach. These key revenue streams and strategic partnerships significantly contribute to Fincantieri's earnings.

Fincantieri S.p.A. Financial Statement Overview

Summary
Fincantieri S.p.A. shows a positive recovery trend with revenue growth and improved profitability metrics. However, the company faces challenges with low EBIT margins and high leverage, posing risks to operational efficiency and financial stability.
Income Statement
72
Positive
The income statement shows a positive trajectory in revenue growth with a 6.8% increase from 2023 to 2024. Gross profit margin improved from 20.8% to 21.3%. Net profit margin shifted positively into a profit of 0.41%, recovering from a loss in the previous year. However, the EBIT margin remains low at 0.31%, indicating challenges in operational efficiency. Overall, the company demonstrates a positive recovery trend but still faces profitability challenges at the EBIT level.
Balance Sheet
65
Positive
The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 2.74, indicating high leverage. The equity ratio improved to 8.9%, showing a slight increase in equity relative to assets. Return on equity (ROE) is 3.86%, showing profitability but still at a modest level. While there is improvement in equity, high leverage presents a risk that needs monitoring.
Cash Flow
68
Positive
Cash flow analysis reveals a positive operating cash flow to net income ratio of 13.54, highlighting strong cash generation relative to profits. Free cash flow growth shows a significant decline of 52.2%, but the company maintains a positive free cash flow position. Despite the decrease in free cash flow growth, the company shows good cash management with positive operating cash flows.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.41B7.95B7.45B7.35B6.80B5.78B
Gross Profit-351.92M1.70B1.55B1.34B1.49B1.05B
EBITDA250.93M548.80M395.24M3.80M383.08M19.03M
Net Income-32.50M32.83M-52.83M-323.95M21.78M-244.52M
Balance Sheet
Total Assets5.74B9.56B8.71B8.71B9.08B8.69B
Cash, Cash Equivalents and Short-Term Investments0.00684.46M757.27M564.58M1.24B1.27B
Total Debt2.06B2.33B2.91B3.21B3.56B3.82B
Total Liabilities4.97B8.72B8.28B8.12B8.25B7.92B
Stockholders Equity769.00M849.46M433.12M585.50M818.58M761.47M
Cash Flow
Free Cash Flow391.80M180.80M378.40M-352.60M504.56M-852.72M
Operating Cash Flow666.08M444.73M636.73M-57.72M862.37M-543.39M
Investing Cash Flow-173.41M-240.47M-104.95M-225.01M-535.22M-376.02M
Financing Cash Flow-395.45M-272.38M-331.26M-389.52M-377.51M1.82B

Fincantieri S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.63
Price Trends
50DMA
13.51
Positive
100DMA
11.52
Positive
200DMA
8.72
Positive
Market Momentum
MACD
0.29
Positive
RSI
63.11
Neutral
STOCH
78.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:FCT, the sentiment is Positive. The current price of 15.63 is above the 20-day moving average (MA) of 14.84, above the 50-day MA of 13.51, and above the 200-day MA of 8.72, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:FCT.

Fincantieri S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥255.65B12.958.49%3.10%6.31%12.92%
ITFCT
63
Neutral
€5.04B
€615.21M97.342.02%0.63%
€26.82B25.0012.77%0.96%
€17.52B24.9915.32%1.19%
€3.58B18.0411.69%1.98%
ITIVG
68
Neutral
€5.65B11.84
1.75%-7.61%62.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:FCT
Fincantieri S.p.A.
15.63
10.61
211.35%
GB:0R9S
Avio S.p.A.
23.45
11.56
97.22%
GB:0ONG
Leonardo Spa
46.63
25.02
115.78%
GB:0NUX
Prysmian SpA
61.10
5.41
9.71%
GB:0BJP
Webuild SpA
3.56
1.52
74.51%
IT:IVG
Iveco Group NV
16.34
5.97
57.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 11, 2025