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

• Market Cap: €7.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 55.1
• Beta (1Y): 0.75
• Revenue Growth: 18.44%
• EPS Growth: N/A
• Country: IT
• Employees: 22,270
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.15
• Shares Outstanding: 324,459,400
• 10 Day Avg. Volume: 2,056,717
• 30 Day Avg. Volume: 1,768,952
• PEG Ratio: -0.32
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 9.17
• 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: €22.07
• Price Target Upside: -2.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: €24.50 ▲(8.79% Upside)

Fincantieri S.p.A. shows a positive recovery in financial performance with strong cash flow management and improving profitability metrics. Technical indicators suggest bullish momentum, although the stock is currently overvalued based on its P/E ratio. The absence of earnings call data and corporate events limits additional insights. The company needs to address high leverage and operational efficiency to enhance its financial position further.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Fincantieri's products and services, supporting long-term business expansion and market presence.

Cash Flow Management

Strong cash generation relative to profits highlights effective cash flow management, ensuring liquidity and operational stability.

Profitability Improvement

Improved profitability metrics reflect better cost management and operational efficiency, enhancing long-term financial health.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Operational Efficiency Challenges

Low EBIT margins suggest inefficiencies in operations, which could hinder profitability and competitiveness in the long term.

Decline in Free Cash Flow Growth

A decline in free cash flow growth may limit the company's ability to fund new projects and return capital to shareholders, affecting future growth prospects.

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. demonstrates a recovering financial position with increasing revenues and improved profitability metrics over the past year. The income statement reflects growth, although EBIT margins indicate room for operational improvement. The balance sheet shows high leverage, which poses 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. Overall, the company is on a positive trajectory but must address leverage and improve operational efficiency to sustain 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	8.84B	7.95B	7.45B	7.35B	6.80B	5.78B
Gross Profit	1.94B	1.70B	1.55B	1.34B	1.49B	1.05B
EBITDA	515.57M	557.96M	395.24M	3.80M	383.08M	19.03M
Net Income	95.60M	32.83M	-52.83M	-308.87M	21.78M	-240.06M
Balance Sheet
Total Assets	10.43B	9.56B	8.71B	8.71B	9.08B	8.69B
Cash, Cash Equivalents and Short-Term Investments	503.59M	684.46M	757.27M	564.58M	1.24B	1.27B
Total Debt	2.54B	2.33B	2.91B	3.21B	3.56B	3.82B
Total Liabilities	9.56B	8.72B	8.28B	8.12B	8.25B	7.92B
Stockholders Equity	878.02M	849.46M	433.12M	585.50M	818.58M	761.47M
Cash Flow
Free Cash Flow	536.82M	180.80M	378.40M	-352.60M	504.56M	-852.72M
Operating Cash Flow	713.69M	444.73M	636.73M	-57.72M	862.37M	-543.39M
Investing Cash Flow	-915.88M	-240.47M	-104.95M	-225.01M	-535.22M	-376.02M
Financing Cash Flow	104.30M	-272.38M	-331.26M	-389.52M	-377.51M	1.82B

Fincantieri S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:FCT, the sentiment is Neutral. The current price of 22.52 is below the 20-day moving average (MA) of 24.06, above the 50-day MA of 21.67, and above the 200-day MA of 14.79, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 35.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
WBD	―	€3.49B	13.92	15.86%	2.31%	21.15%	17.26%
PRY	―	€25.79B	34.32	15.19%	0.91%	24.33%	36.45%
IVG	―	€6.29B	14.93	―	1.79%	-6.97%	41.29%
LDO	―	€29.47B	28.15	12.10%	1.03%	14.13%	5.99%
FCT	―	€7.14B	55.08	14.30%	―	18.44%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AVIO	―	€1.16B	187.84	1.96%	0.42%	32.64%	-38.77%