F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. (FILA) AI Stock Analysis

• Market Cap: €503.95M
• Dividend Yield: 8.29%
• Average Volume (3M): 179.97K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.57
• Revenue Growth: -11.91%
• EPS Growth: -61.21%
• Country: IT
• Employees: 3,140
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.23
• Shares Outstanding: 42,976,440
• 10 Day Avg. Volume: 220,720
• 30 Day Avg. Volume: 179,972
• PEG Ratio: -0.12
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 6.74
• 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: €16.40
• Price Target Upside: 65.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €10.50 ▲(5.74% Upside)

The overall stock score for F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. is 72. The valuation is a significant strength, with a low P/E ratio and high dividend yield suggesting the stock is undervalued. Technical analysis supports a positive trend, although financial performance indicates challenges with revenue growth and cash flow. Addressing these financial concerns could further enhance the stock's attractiveness.

Positive Factors

Strong Brand Portfolio

FILA's strong brand portfolio supports customer loyalty and market position, providing a durable competitive advantage in the stationery and art supplies market.

Stable Balance Sheet

A stable balance sheet with manageable leverage enhances financial resilience, allowing FILA to invest in growth opportunities and withstand economic fluctuations.

Improved Gross Profit Margin

Improved gross profit margins indicate effective cost management, which can support profitability and provide a buffer against revenue fluctuations.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a challenge to sustaining long-term business expansion and may impact overall financial health if not addressed.

Decreased ROE

A decrease in ROE suggests reduced efficiency in generating returns on equity, which could affect investor confidence and long-term growth potential.

Negative Free Cash Flow Growth

Negative growth in free cash flow indicates potential liquidity issues, which could limit the company's ability to fund operations and invest in future growth.

F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. Business Overview & Revenue Model

Company Description

F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A. produces and markets coloring, designing, modelling, writing, and painting objects worldwide. It provides pencils, crayons, modelling clays, chalks, oil colors, acrylics, watercolors, paints, and paper products for the fine arts, school, and leisure sectors. The company offers its products under the GIOTTO, DAS, LYRA, Canson, Maimeri, Daler-Rowney Lukas, Ticonderoga, Pacon, Strathmore, Princeton, and Arches brands. It sells its products through a distribution network of 35 commercial branches to wholesalers, office/school suppliers, mass-market retailers, distributors, and B2B operators, as well as online channels. The company was founded in 1920 and is headquartered in Pero, Italy.

How the Company Makes Money

FILA generates revenue through the sale of its wide array of products in the stationery and art supplies sectors. Key revenue streams include the sale of writing instruments, coloring products, and art supplies to both retail and wholesale customers. The company has established significant partnerships with educational institutions and retailers, which enhance its market reach and distribution capabilities. Additionally, FILA benefits from brand loyalty and recognition, allowing it to maintain a competitive edge in the marketplace. The company's commitment to product innovation and sustainability also attracts a growing customer base, further contributing to its earnings.

F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. Financial Statement Overview

Summary

F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. demonstrates solid profitability with strong EBIT and EBITDA margins and a stable balance sheet with effective debt management. However, challenges include a decline in revenue growth and free cash flow, which need addressing for long-term financial health.

Income Statement

The income statement shows mixed performance. The TTM data indicates a decline in revenue growth rate by -3.77%, which is concerning. However, the company maintains a healthy gross profit margin of 28.85% and a net profit margin of 12.16%. The EBIT and EBITDA margins are strong at 23.70% and 29.82%, respectively, indicating efficient operations. Despite the revenue decline, profitability remains robust.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.21 in the TTM period, showing effective debt management. The return on equity is 12.57%, which is satisfactory, indicating good returns for shareholders. The equity ratio stands at 49.50%, suggesting a balanced capital structure with a strong equity base.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth by -28.78% in the TTM period. The operating cash flow to net income ratio is moderate at 0.53, and the free cash flow to net income ratio is strong at 0.81, indicating decent cash generation relative to net income. However, the negative growth in free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	580.03M	612.58M	779.18M	767.28M	655.99M	609.70M
Gross Profit	259.95M	161.46M	198.21M	271.92M	255.30M	225.90M
EBITDA	173.83M	165.00M	286.00M	108.56M	119.17M	83.87M
Net Income	66.99M	81.77M	170.65M	25.27M	38.01M	8.61M
Balance Sheet
Total Assets	1.14B	1.18B	1.19B	1.19B	1.19B	1.14B
Cash, Cash Equivalents and Short-Term Investments	145.50M	176.34M	127.01M	112.06M	149.44M	127.65M
Total Debt	239.00K	357.43M	429.74M	550.42M	576.92M	602.48M
Total Liabilities	552.46M	546.90M	617.06M	765.95M	795.33M	810.06M
Stockholders Equity	580.36M	630.48M	569.87M	399.37M	372.42M	308.01M
Cash Flow
Free Cash Flow	47.27M	78.13M	102.92M	71.66M	110.43M	60.36M
Operating Cash Flow	69.48M	108.61M	133.18M	88.40M	119.14M	74.39M
Investing Cash Flow	67.04M	67.95M	20.54M	-20.44M	-20.57M	-65.29M
Financing Cash Flow	-42.70M	-137.54M	-148.71M	-90.40M	-77.35M	19.45M

F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.93
• 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:FILA, the sentiment is Positive. The current price of 9.93 is above the 20-day moving average (MA) of 9.72, above the 50-day MA of 9.48, and above the 200-day MA of 9.28, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.66 is Neutral, neither overbought nor oversold. The STOCH value of 96.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:FILA.

F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FILA	72 Outperform	€503.95M	7.52	11.68%	8.29%	-11.91%	-61.21%
DIS	71 Outperform	€624.98M	8.19	12.15%	7.43%	-29.74%	-57.59%
ARIS	70 Outperform	€1.53B	17.27	―	1.77%	-7.48%	62.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DAL	57 Neutral	€244.36M	86.77	0.71%	2.64%	0.19%	-76.65%
AV	54 Neutral	€358.37M	-36.14	―	―	7.94%	91.30%