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

• Market Cap: €207.88M
• Dividend Yield: 3.83%
• Average Volume (3M): 273.53K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.49
• Revenue Growth: 4.31%
• EPS Growth: -15.86%
• 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: 71 Outperform
• Price Target: €0.53 ▲(9.58% Upside)

FNM S.p.A. receives a solid overall score driven by its attractive valuation and technical indicators suggesting potential upward momentum. However, the mixed financial performance, particularly the decline in revenue and free cash flow growth, tempers the overall outlook.

Positive Factors

Profitability Margins

Strong profitability margins indicate efficient operations and cost management, supporting long-term financial health and competitiveness.

Debt Management

Effective debt management with low leverage enhances financial stability and flexibility, allowing for strategic investments and growth.

Revenue Streams

Diverse revenue streams from passenger fares, government contracts, and freight services provide resilience against market fluctuations.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth indicates potential challenges in market expansion or competitive pressures, impacting future earnings.

Free Cash Flow Challenges

Declining free cash flow growth suggests liquidity issues, which could constrain investment in growth opportunities and operational flexibility.

Gross Profit Margin Pressure

Decreasing gross profit margins may indicate rising costs or pricing pressures, potentially affecting long-term profitability and competitiveness.

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 fares collected from passengers using its rail and bus services. The company also earns income through contracts and agreements with regional governments for public transport services. Additional revenue comes from freight transport services and logistics solutions provided to various industries. FNM may also benefit from partnerships with other transport operators and infrastructure projects, as well as from government subsidies aimed at promoting public transportation. The company's strategic focus on expanding its service offerings and improving operational efficiency contributes significantly to its financial performance.

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 0.48, 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 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 82.05 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
BPSO	72 Outperform	€7.04B	10.74	15.43%	5.11%	-10.80%	20.43%
IF	71 Outperform	€1.52B	8.57	8.85%	8.42%	-3.63%	-5.12%
FNM	71 Outperform	€207.88M	3.09	19.00%	3.83%	4.31%	-15.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BFF	63 Neutral	€1.77B	13.27	17.55%	―	-25.72%	-46.30%
BDB	53 Neutral	€1.24B	10.64	7.87%	4.95%	-5.81%	-11.05%