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

• Market Cap: €5.99B
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 46.2
• Beta (1Y): 0.76
• Revenue Growth: 18.44%
• EPS Growth: N/A
• Country: IT
• Employees: 22,270
• Sector: Industrials
• Sector Strength: 76
• Industry: Aerospace & Defense
• EPS (TTM): 0.15
• Shares Outstanding: 324,360,570
• 10 Day Avg. Volume: 2,087,281
• 30 Day Avg. Volume: 1,645,645
• 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: €17.75
• Price Target Upside: -5.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: €18.00 ▼(-4.10% Downside)

Fincantieri S.p.A.'s stock score is primarily driven by its recovering financial performance and positive technical indicators. However, high leverage and an elevated P/E ratio pose significant risks, impacting the overall score.

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. Business Overview & Revenue Model

Company Description

Fincantieri 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 Money

Fincantieri generates revenue primarily through the construction and sale of ships, including passenger ships, naval vessels, and offshore vessels. The company's revenue streams include contracts for new shipbuilding projects, which are often significant long-term contracts with major cruise lines and governments. In addition to shipbuilding, Fincantieri earns income from repair and maintenance services for existing vessels, as well as from the sale of maritime components and systems. Strategic partnerships with other companies in the maritime and defense sectors enhance its capabilities and market reach, contributing to its earnings. The variability in demand for new vessels and the cyclical nature of the maritime industry are key factors that influence Fincantieri's financial performance.

Fincantieri S.p.A. Financial Statement Overview

Summary

Fincantieri S.p.A. shows a recovering financial position with revenue increases and improved profitability metrics. The income statement reflects growth, although EBIT margins indicate room for operational improvement. The balance sheet shows high leverage, posing a risk, but there is an increase in equity. Cash flow metrics are strong, with positive operating cash flows, although there is a notable decrease in free cash flow growth.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.41B	7.95B	7.45B	7.35B	6.80B	5.78B
Gross Profit	-351.92M	1.70B	1.55B	1.34B	1.49B	1.05B
EBITDA	250.93M	548.80M	395.24M	3.80M	383.08M	19.03M
Net Income	-32.50M	32.83M	-52.83M	-323.95M	21.78M	-244.52M
Balance Sheet
Total Assets	5.74B	9.56B	8.71B	8.71B	9.08B	8.69B
Cash, Cash Equivalents and Short-Term Investments	0.00	684.46M	757.27M	564.58M	1.24B	1.27B
Total Debt	2.06B	2.33B	2.91B	3.21B	3.56B	3.82B
Total Liabilities	4.97B	8.72B	8.28B	8.12B	8.25B	7.92B
Stockholders Equity	769.00M	849.46M	433.12M	585.50M	818.58M	761.47M
Cash Flow
Free Cash Flow	391.80M	180.80M	378.40M	-352.60M	504.56M	-852.72M
Operating Cash Flow	666.08M	444.73M	636.73M	-57.72M	862.37M	-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	-377.51M	1.82B

Fincantieri S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.77
• 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:FCT, the sentiment is Positive. The current price of 18.77 is above the 20-day moving average (MA) of 17.28, above the 50-day MA of 16.45, and above the 200-day MA of 11.23, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCT	66 Neutral	€5.99B	46.19	14.30%	―	18.44%	―
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
0R9S	―	€888.92M	140.72	2.02%	―	―	―
0ONG	―	€27.92B	26.53	12.10%	―	―	―
0NUX	―	€21.59B	28.64	15.19%	―	―	―
0BJP	―	€3.97B	16.08	15.86%	―	―	―
IVG	70 Neutral	€6.34B	15.18		1.80%	-6.97%	41.29%