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

• Market Cap: €175.70M
• Dividend Yield: 4.55%
• Average Volume (3M): 298.38K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.47
• Revenue Growth: 3.75%
• EPS Growth: -31.35%
• Country: IT
• Employees: 2,675
• Sector: Financial
• Sector Strength: 77
• Industry: Railroads
• EPS (TTM): 0.03
• Shares Outstanding: 434,902,560
• 10 Day Avg. Volume: 351,240
• 30 Day Avg. Volume: 298,382
• PEG Ratio: 0.04
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.29
• 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: 75 Outperform
• Price Target: €0.50 ▲(25.00%Upside)

FNM S.p.A. demonstrates a strong financial performance with consistent growth in revenue and profits, supported by a solid capital structure. Its valuation suggests the stock is attractive, with a low P/E ratio and a high dividend yield. However, technical indicators show a neutral to slightly bearish trend, which may pose short-term risks. Overall, the company is well-positioned for long-term stability and growth, but investors should be cautious of current market trends.

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 Stability

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. 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 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 with consistent revenue and profit growth, a balanced capital structure, and robust cash flow generation. While the company faces some challenges with rising leverage and cost management, its overall financial trajectory remains positive, supporting long-term stability and growth potential.

Income Statement

FNM S.p.A. has shown consistent revenue growth over the years, with a significant increase from 2020 to 2024. The gross profit margin and net profit margin have improved over time, indicating enhanced operational efficiency. However, the EBIT margin has slightly decreased compared to previous years, suggesting potential challenges in cost management.

Balance Sheet

The company maintains a stable debt-to-equity ratio, although it has increased slightly in recent years, indicating higher leverage. The return on equity has improved, reflecting better utilization of shareholder funds. The equity ratio is healthy, demonstrating a balanced capital structure.

Cash Flow

FNM S.p.A. has experienced positive free cash flow growth, with a robust operating cash flow to net income ratio, suggesting strong cash generation relative to profitability. The free cash flow to net income ratio is stable, reflecting effective cash management despite fluctuations in capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
891.85M	750.97M	661.10M	567.93M	243.75M
	Gross Profit
235.12M	243.28M	198.05M	170.23M	6.05M
	EBIT
74.27M	104.68M	101.06M	75.11M	26.38M
	EBITDA
239.52M	228.94M	195.87M	150.51M	68.17M
	Net Income Common Stockholders
59.33M	80.86M	68.48M	40.88M	24.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
504.16M	398.55M	244.64M	365.14M	253.34M
	Total Assets
2.35B	2.11B	2.02B	1.92B	1.15B
	Total Debt
925.76M	846.31M	905.44M	972.14M	154.91M
	Net Debt
426.32M	451.06M	668.51M	620.31M	-98.43M
	Total Liabilities
1.94B	1.74B	1.71B	1.69B	668.60M
	Stockholders Equity
374.31M	355.33M	283.93M	206.82M	457.80M
Cash Flow		Free Cash Flow
106.89M	134.22M	56.14M	102.16M	-60.43M
	Operating Cash Flow
196.00M	182.69M	145.22M	140.42M	7.44M
	Investing Cash Flow
-81.42M	63.96M	-157.20M	-546.45M	25.47M
	Financing Cash Flow
-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: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.39, and below the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 6.11 is Positive, 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
FNM	75 Outperform	€175.70M	3.04	16.26%	4.55%	3.75%	-31.35%
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%
0RON		€1.67B	7.84	30.06%	11.78%	―	―
0NBX		€1.18B	7.28	9.47%	9.46%	―	―
0NWJ		€5.32B	8.80	14.61%	6.76%	―	―
0R9H		€144.76M	4.41	12.09%	4.02%	―	―
0O5V		€970.10M	7.87	8.39%	6.28%	―	―