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

• Market Cap: €200.92M
• Dividend Yield: 3.83%
• Average Volume (3M): 273.53K
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.53
• Revenue Growth: 8.15%
• EPS Growth: -15.92%
• Country: IT
• Employees: 2,675
• Sector: Financial
• Sector Strength: 70
• Industry: Railroads
• EPS (TTM): 0.04
• Shares Outstanding: 434,902,560
• 10 Day Avg. Volume: 229,859
• 30 Day Avg. Volume: 273,530
• PEG Ratio: -0.12
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 1.77
• 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: €0.71
• Price Target Upside: 47.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €0.50 ▲(4.17% Upside)

FNM S.p.A.'s overall stock score is primarily influenced by its valuation, which suggests the stock is undervalued with a low P/E ratio and high dividend yield. However, financial performance is mixed due to declining revenue and high leverage, which are significant concerns. Technical analysis shows a lack of strong momentum, adding to the cautious outlook.

Positive Factors

Sustainable Transport Solutions

FNM's focus on sustainable transport aligns with global trends towards eco-friendly solutions, potentially enhancing its competitive edge and market appeal.

Strong Return on Equity

A strong ROE indicates effective management and the ability to generate profits from shareholders' investments, supporting long-term growth potential.

Improving Cash Flow Generation

Improving cash flow generation enhances FNM's ability to fund operations, invest in growth opportunities, and maintain financial stability.

Negative Factors

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flows, potentially impacting long-term financial health.

Declining Revenue Growth

Declining revenue growth suggests challenges in market demand or competitive pressures, which could hinder long-term business expansion.

Low Cash Conversion Efficiency

Low cash conversion efficiency indicates potential issues in converting earnings into cash, which may affect liquidity and operational flexibility.

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

Company Description

FNM S.p.A. manages and maintains railway network in Italy. The company offers road passenger transport and motorway infrastructure management services; engineering services; design, and works and project management services; and regular transport for workers. It also provides railway and Malpensa express, railway replacement and school bus, freight transportation, and electric car sharing services, as well as digital solutions for transport and mobility, digital payments, and optical fibre. In addition, it provides energy services. The company was formerly known as Ferrovie Nord Milano. The company was founded in 1877 and is headquartered in Milan, Italy.

How the Company Makes Money

FNM generates revenue through multiple streams, primarily from its passenger and freight transport services. The company earns money by selling tickets for rail and bus services, which is a significant portion of its revenue. Additionally, FNM benefits from government subsidies and contracts for public transportation services, which provide a steady source of income. The company also engages in partnerships with local authorities and other transportation providers to enhance its service offerings and expand its market reach. Furthermore, FNM is involved in real estate and infrastructure projects that contribute to its earnings, including leasing and management of transit-oriented developments.

FNM S.p.A. Financial Statement Overview

Summary

FNM S.p.A. presents a mixed financial picture. The company faces challenges with declining revenue growth, though it maintains stable profitability margins. The balance sheet shows high leverage, but strong return on equity. Cash flow generation is improving, yet cash conversion efficiency remains an area for enhancement. The company should focus on revenue growth and managing leverage to strengthen its financial position.

Income Statement

FNM S.p.A. shows a mixed performance in its income statement. The company has experienced a significant revenue decline in the TTM period, with a negative revenue growth rate of -32.2%. However, it maintains a stable net profit margin of 6.27% and a reasonable EBIT margin of 11.50%. The gross profit margin has decreased over time, indicating potential cost pressures. Overall, while profitability metrics are stable, the revenue decline is a concern.

Balance Sheet

The balance sheet of FNM S.p.A. reflects a high debt-to-equity ratio of 2.34, indicating significant leverage, though it has improved from previous years. The return on equity is strong at 15.85%, suggesting efficient use of equity to generate profits. The equity ratio is moderate, showing a balanced asset structure. While leverage remains a risk, the company demonstrates good equity returns.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 5.51% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is relatively low at 0.15, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is 32.80%, showing moderate cash flow support for earnings. Overall, cash flow performance is stable but could be improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	919.64M	891.85M	750.97M	661.10M	567.93M	243.75M
Gross Profit	186.69M	235.12M	243.28M	198.05M	170.23M	6.05M
EBITDA	254.87M	239.52M	228.94M	195.87M	150.51M	68.17M
Net Income	70.89M	59.33M	80.86M	68.48M	40.88M	24.18M
Balance Sheet
Total Assets	2.34B	2.35B	2.11B	2.02B	1.92B	1.15B
Cash, Cash Equivalents and Short-Term Investments	424.35M	504.16M	398.55M	244.64M	365.14M	253.34M
Total Debt	32.03M	925.76M	846.31M	905.44M	972.14M	154.91M
Total Liabilities	2.34B	1.94B	1.74B	1.71B	1.69B	668.60M
Stockholders Equity	407.50M	374.31M	355.33M	283.93M	206.82M	457.80M
Cash Flow
Free Cash Flow	54.12M	106.89M	134.22M	56.14M	102.16M	-60.43M
Operating Cash Flow	155.51M	196.00M	182.69M	145.22M	140.42M	7.44M
Investing Cash Flow	19.56M	-81.42M	63.96M	-157.20M	-546.45M	25.47M
Financing Cash Flow	-101.39M	-9.53M	-88.41M	-102.59M	504.52M	-8.29M

FNM S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 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:FNM, the sentiment is Positive. The current price of 0.48 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.47, and above the 200-day MA of 0.43, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.99 is Neutral, neither overbought nor oversold. The STOCH value of 81.75 is Negative, 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
BFF	74 Outperform	€2.02B	16.17	17.55%	―	-25.72%	-46.30%
BPSO	72 Outperform	€6.63B	10.24	15.43%	5.53%	-10.80%	20.43%
IF	71 Outperform	€1.34B	7.57	8.85%	8.83%	-3.63%	-5.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FNM	66 Neutral	€200.92M	2.83	19.00%	3.83%	8.15%	-15.92%
BDB	61 Neutral	€1.13B	9.67	7.87%	5.44%	-5.81%	-11.05%