Fine Foods & Pharmaceuticals N.T.M. SpA (FF) AI Stock Analysis

• Market Cap: €193.58M
• Dividend Yield: 1.53%
• Average Volume (3M): 17.32K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.12
• Revenue Growth: -4.22%
• EPS Growth: N/A
• Country: IT
• Employees: 779
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 0.17
• Shares Outstanding: 22,060,125
• 10 Day Avg. Volume: 21,036
• 30 Day Avg. Volume: 17,315
• PEG Ratio: -0.39
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -294.33
• 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: €11.70
• Price Target Upside: 44.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: €8.00 ▼(-1.23%Downside)

The company's overall stock score is driven primarily by its moderate financial health and positive technical indicators, despite valuation concerns. The financial performance, characterized by a strong equity position and improving cash flow, is the most significant factor. Technical analysis indicates a positive trend, though the valuation suggests potential overvaluation.

Positive Factors

Financial Performance

1Q25 was the best ever in terms of EBITDA and margin, achieved fully organically and through traditional actions.

Growth Strategy

The company's positive qualitative outlook for FY25 is supported by a strong order backlog and existing multi-year agreements.

Negative Factors

Business Unit Performance

The Nutra business unit is expected to have slower growth assumptions, leading to a slight reduction in group revenue.

Revenue Growth

A relatively challenging YoY comparison and different order phasing led to a drop in group revenues.

Fine Foods & Pharmaceuticals N.T.M. SpA Business Overview & Revenue Model

Company Description

Fine Foods & Pharmaceuticals N.T.M. S.p.A. engages in the contract development and manufacturing of oral solid forms for the pharmaceutical and nutraceutical industries. It offers pharmaceutical products, including powders and granules, capsules, tablets, film-coated tablets, effervescent granules, and hard gelatine capsules. The company also provides nutraceutical products comprising soluble and effervescent powders and granules, soluble, effervescent and chewable tablets, fast melting/sublingual tablets, film-coated tablets, and hard gelatin capsules for various therapeutic areas, such as probiotics, multivitamins and minerals, immune systems, sleep and relax, gastrointestinal system, circulatory system, osteoarticular system, urinary system, women health, beauty, healthy ageing, and mental wellbeing. In addition, the company manufactures and trades in cosmetics products consisting of hair care, skin care, liquid detergents for personal hygiene, skin care emulsions, oral hygiene, deodorants, alcohol-based perfumery, bath and shower gel, shampoo and conditioners, shaping waxes, mouthwash and breath products, creams, gel and toothpaste, roll-on, stick and vapo spray deodrants, intimate cleansers, emulsions and microemulsions, gels, and liquid soaps; medical surgical aids and medical devices; antiseptics for undamaged skin, hand gel, pre-injection, hydroalcoholic surfaces, and iodine; and orthodontic cleaning tablets, disinfectants, and decongestant nasal sprays. The company was founded in 1984 and is headquartered in Verdellino, Italy.

How the Company Makes Money

Fine Foods & Pharmaceuticals N.T.M. SpA generates revenue primarily through its contract development and manufacturing services. The company's key revenue streams include the production and supply of pharmaceuticals, nutraceuticals, and cosmetics for third-party brands. FF partners with pharmaceutical and consumer health companies to develop and manufacture products under their brand names, providing end-to-end solutions that include formulation, production, and packaging. The company benefits from long-term contracts and significant repeat business from its clients, leveraging its expertise and state-of-the-art facilities to meet stringent quality standards and regulatory requirements. Strategic partnerships and a strong focus on innovation further bolster FF's earnings, enabling it to maintain a competitive edge in the CDMO market.

Fine Foods & Pharmaceuticals N.T.M. SpA Financial Statement Overview

Summary

Fine Foods & Pharmaceuticals N.T.M. SpA exhibits moderate financial health with stable profitability in a competitive industry. Revenue growth faces challenges, but the company has a solid equity position and effective cash flow management. Focus should be on enhancing operational efficiency and driving consistent revenue growth.

Income Statement

The company shows moderate profitability with a gross profit margin of approximately 41.8% and a net profit margin of 3.3% as of 2024. Revenue growth has been inconsistent, with a decline in 2024 compared to 2023. EBIT and EBITDA margins remain relatively low, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.41, indicating reliance on equity over debt. The equity ratio is strong at 54.4%, reflecting a solid equity base. However, the return on equity is low at 6.2%, suggesting limited profitability relative to shareholder investment.

Cash Flow

Cash flow performance is improving, with free cash flow turning positive in 2024. The operating cash flow to net income ratio is robust at 5.62, reflecting strong cash generation relative to earnings. The free cash flow to net income ratio is 1.36, indicating effective cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	243.75M	251.81M	206.85M	194.42M	173.03M
Gross Profit	80.13M	68.56M	53.63M	55.89M	49.23M
EBITDA	30.90M	19.29M	3.64M	9.86M	28.80M
Net Income	8.16M	-3.52M	-9.50M	-1.43M	13.36M
Balance Sheet
Total Assets	242.59M	241.56M	299.82M	302.81M	207.44M
Cash, Cash Equivalents and Short-Term Investments	19.21M	19.15M	76.74M	95.09M	74.95M
Total Debt	54.53M	66.39M	120.36M	110.76M	21.19M
Total Liabilities	110.53M	114.61M	166.53M	155.59M	66.43M
Stockholders Equity	132.06M	126.95M	133.29M	147.22M	141.01M
Cash Flow
Free Cash Flow	11.12M	-329.75K	-12.30M	-21.75M	14.66M
Operating Cash Flow	45.85M	18.54M	3.69M	-5.83M	30.47M
Investing Cash Flow	-31.56M	45.89M	-15.31M	-36.35M	-12.34M
Financing Cash Flow	-14.08M	-55.66M	4.74M	55.95M	-17.41M

Fine Foods & Pharmaceuticals N.T.M. SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.10
• 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:FF, the sentiment is Positive. The current price of 8.1 is above the 20-day moving average (MA) of 7.63, above the 50-day MA of 7.43, and above the 200-day MA of 7.46, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 75.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:FF.

Fine Foods & Pharmaceuticals N.T.M. SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$26.91B	15.06	-4.01%	3.23%	1.02%	2.12%
FF	64 Neutral	€193.58M	20.68		1.53%	-4.22%	―
0GEJ		€118.89M	13.42	9.43%	2.99%	―	―
ENV		€56.60M	13.72		5.03%	―	―
HQF		€7.00M	45.74		―	―	―
IWB		€194.75M	8.63		2.43%	―	―
NWL		€741.05M	4.54		―	―	―