FNM S.p.A. (FNM) AI Stock Analysis

• Market Cap: €174.83M
• Dividend Yield: 4.58%
• Average Volume (3M): 309.88K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.49
• Revenue Growth: 2.98%
• EPS Growth: -31.25%
• Country: IT
• Employees: 2,675
• Sector: Financial
• Sector Strength: 75
• Industry: Railroads
• EPS (TTM): 0.03
• Shares Outstanding: 434,902,560
• 10 Day Avg. Volume: 295,342
• 30 Day Avg. Volume: 309,875
• PEG Ratio: N/A
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.42
• 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: €0.63
• Price Target Upside: 57.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: €0.50 ▲(25.00%Upside)

FNM S.p.A. receives a strong overall score, driven primarily by its robust financial performance and attractive valuation. The company's solid profitability and cash flow management are key strengths, while the low P/E ratio and healthy dividend yield enhance its appeal. Technical analysis suggests a neutral trend, which slightly moderates the overall score.

Positive Factors

Earnings

1Q25 results were a touch better than expectations both on revenue and profit, also in line with the management’s 2025 guidance.

Financial Strength

The new refinancing package, approved along the recent credit outlook upgrade, should reassure investors’ concerns over the group’s financial strength.

Negative Factors

Dividends

The Board of Directors proposed a DPS of EUR 0.0184, a decrease of 20% year over year, due to extraordinary costs that had a double-digit impact on the group's net profit.

Operating Profit

Operating profit performance weakened, mainly due to lower margin at MISE, resulting in FY24 EBITDA slightly below the low end of the guidance.

FNM S.p.A. Business Overview & Revenue Model

Company Description

FNM S.p.A. (FNM) is an Italian company primarily engaged in the transportation and mobility services sector. It focuses on railway transport and operates through its subsidiaries to provide regional passenger rail services, freight transport, and infrastructure management. The company is a key player in the Lombardy region, offering integrated mobility solutions to enhance connectivity and accessibility.

How the Company Makes Money

FNM makes money through a combination of passenger rail services, freight logistics, and infrastructure management. The company generates revenue from ticket sales for its regional and commuter train services. It also earns from freight transportation agreements, leveraging its rail networks to provide logistics solutions to various industries. Additionally, FNM manages and maintains railway infrastructure, receiving fees and subsidies related to its operational and maintenance activities. Strategic partnerships with regional government bodies and other transportation entities further bolster its revenue streams, ensuring a stable and diversified income base.

FNM S.p.A. Financial Statement Overview

Summary

FNM S.p.A. exhibits strong financial health, driven by solid revenue growth, efficient operations, and robust cash flow management. The company enjoys good profitability margins and a commendable return on equity. While leverage is relatively high, the balance sheet remains stable, supported by consistent cash flow generation.

Income Statement

FNM S.p.A. shows a robust financial performance in the TTM with a remarkable Gross Profit Margin of 22.8% and a healthy Net Profit Margin of 6.3%. The company has demonstrated consistent revenue growth, with the TTM revenue increasing by 3.4% compared to the previous year. The EBIT and EBITDA margins are strong at 8.1% and 26.1%, respectively, indicating efficient operations and good control over expenses.

Balance Sheet

The balance sheet of FNM S.p.A. reflects a stable financial position with a Debt-to-Equity Ratio of 2.35, suggesting moderate leverage. The Equity Ratio stands at 16.3%, indicating a solid equity base. The Return on Equity is an impressive 14.9%, signaling good returns for shareholders. Overall, the company maintains a healthy balance between debt and equity, though the high leverage could pose potential risks in a volatile market.

Cash Flow

The cash flow situation is favorable, with an Operating Cash Flow to Net Income Ratio of 2.7, highlighting strong cash generation capabilities. Free Cash Flow has grown by 10.7% compared to the previous year, contributing to financial flexibility. The Free Cash Flow to Net Income Ratio is 0.89, indicating efficient cash conversion from profits. While cash flow management is commendable, ongoing capital expenditures should be monitored to maintain liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	922.61M	891.85M	750.97M	661.10M	567.93M	243.75M
Gross Profit	210.31M	235.12M	243.28M	198.05M	170.23M	6.05M
EBITDA	240.91M	239.52M	228.94M	195.87M	150.51M	68.17M
Net Income	57.88M	59.33M	80.86M	68.48M	40.88M	24.18M
Balance Sheet
Total Assets	2.38B	2.35B	2.11B	2.02B	1.92B	1.15B
Cash, Cash Equivalents and Short-Term Investments	485.70M	504.16M	398.55M	244.64M	365.14M	253.34M
Total Debt	907.39M	925.76M	846.31M	905.44M	972.14M	154.91M
Total Liabilities	1.95B	1.94B	1.74B	1.71B	1.69B	668.60M
Stockholders Equity	387.03M	374.31M	355.33M	283.93M	206.82M	457.80M
Cash Flow
Free Cash Flow	51.29M	106.89M	134.22M	56.14M	102.16M	-60.43M
Operating Cash Flow	156.39M	196.00M	182.69M	145.22M	140.42M	7.44M
Investing Cash Flow	22.08M	-81.42M	63.96M	-157.20M	-546.45M	25.47M
Financing Cash Flow	-98.07M	-9.53M	-88.41M	-102.59M	504.52M	-8.29M

FNM S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:FNM, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.40, and below the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:FNM.

FNM S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPSO	80 Outperform	€5.42B	8.83	14.61%	6.64%	3.04%	18.18%
IF	77 Outperform	€1.42B	7.79	9.47%	7.72%	9.92%	0.75%
FNM	76 Outperform	€174.83M	3.06	16.12%	4.58%	2.98%	-31.25%
BFF	76 Outperform	€1.88B	8.57	30.06%	11.78%	9.40%	29.67%
Sector *	69 Neutral	€15.00B	11.82	14.88%	6.05%	7.26%	0.13%