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Fine Foods & Pharmaceuticals N.T.M. SpA (IT:FF)
:FF
Italy Market

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

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IT

Fine Foods & Pharmaceuticals N.T.M. SpA

(FF)

Rating:64Neutral
Price Target:
€8.00
▲(8.40%Upside)
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
Earnings
1Q25 was the best ever in terms of EBITDA and margin, achieved fully organically and through traditional actions.
Financial Performance
Record profitability was boosted by the Cosmetics repositioning, contributing to improved margins and profitability.
Negative Factors
Growth
The Nutra business unit is expected to have slower growth assumptions, leading to a slight reduction in group revenue.
Revenue
A relatively challenging YoY comparison and different order phasing led to a drop in group revenues.

Fine Foods & Pharmaceuticals N.T.M. SpA (FF) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionFine Foods & Pharmaceuticals N.T.M. SpA (FF) is a leading Italian contract development and manufacturing organization (CDMO) specializing in the production of pharmaceuticals, nutraceuticals, and cosmetics. The company operates within the health and wellness sectors, offering a comprehensive range of services from product development to manufacturing and packaging. FF is known for its commitment to quality and innovation, serving a diverse clientele that includes major pharmaceutical and consumer health companies.
How the Company Makes MoneyFine 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. While revenue growth has faced challenges, the company maintains a solid equity position and effective cash flow management. Future focus should be on enhancing operational efficiency and driving consistent revenue growth.
Income Statement
62
Positive
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
55
Neutral
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
71
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
243.75M251.81M206.85M194.42M173.03M
Gross Profit
101.83M67.74M53.63M54.90M49.23M
EBIT
14.64M1.07M-1.75M7.52M10.79M
EBITDA
30.90M19.29M3.64M9.86M29.18M
Net Income Common Stockholders
8.16M-3.52M-9.50M-1.43M13.36M
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.21M19.15M76.74M95.09M74.95M
Total Assets
242.59M241.56M299.82M302.81M207.44M
Total Debt
54.53M66.39M120.36M110.76M21.19M
Net Debt
35.32M47.39M110.13M93.65M17.85M
Total Liabilities
110.53M114.61M166.53M155.59M66.43M
Stockholders Equity
132.06M126.95M133.29M147.22M141.01M
Cash FlowFree Cash Flow
11.12M-329.75K-12.30M-21.75M14.66M
Operating Cash Flow
45.85M18.54M3.69M-5.83M30.47M
Investing Cash Flow
-31.56M45.89M-15.31M-36.35M-12.34M
Financing Cash Flow
-14.08M-55.66M4.74M55.95M-17.41M

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

Technical Analysis Sentiment
Positive
Last Price7.38
Price Trends
50DMA
7.17
Positive
100DMA
6.94
Positive
200DMA
7.49
Negative
Market Momentum
MACD
0.05
Positive
RSI
52.81
Neutral
STOCH
61.90
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 7.38 is below the 20-day moving average (MA) of 7.42, above the 50-day MA of 7.17, and below the 200-day MA of 7.49, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITREY
74
Outperform
€5.61B26.6317.49%0.76%8.40%13.09%
ITCIR
71
Outperform
€552.38M4.77-1.45%-23.48%
65
Neutral
$8.88B14.984.76%203.76%3.54%-2.49%
ITFF
64
Neutral
€180.39M19.27
1.63%-4.22%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:FF
Fine Foods & Pharmaceuticals N.T.M. SpA
7.38
-1.25
-14.48%
IT:REY
Reply SPA
149.10
14.14
10.48%
IT:CIR
CIR SpA - Compagnie Industriali Riunite
0.60
0.03
5.87%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.