GPI SpA (GPI) AI Stock Analysis

• Market Cap: €470.08M
• Dividend Yield: 5.21%
• Average Volume (3M): 88.12K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.42
• Revenue Growth: 11.25%
• EPS Growth: -76.44%
• Country: IT
• Employees: 7,812
• Sector: Healthcare
• Sector Strength: 45
• Industry: Conglomerates
• EPS (TTM): 0.63
• Shares Outstanding: 28,906,881
• 10 Day Avg. Volume: 56,776
• 30 Day Avg. Volume: 88,124
• PEG Ratio: <0.01
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -20.42
• 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: €18.60
• Price Target Upside: 13.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €16.00 ▼(-1.96% Downside)

GPI SpA's overall stock score is driven by strong financial performance, characterized by robust revenue and profit growth, and a solid balance sheet. However, technical indicators suggest bearish momentum, with the stock trading below key moving averages and an oversold RSI. The valuation is reasonable, supported by a healthy dividend yield. The absence of significant earnings call insights or corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

The 17.60% revenue growth reflects GPI's strong market position and effective sales strategy, indicating potential for continued expansion in the healthcare IT sector.

Profitability Margins

Improved profitability margins demonstrate GPI's ability to manage costs effectively, enhancing long-term financial stability and shareholder value.

Operational Cash Flow

Stronger operational cash flow indicates GPI's improved ability to generate cash from core activities, supporting sustainable growth and investment capacity.

Negative Factors

Free Cash Flow

Negative free cash flow suggests that high capital expenditures are straining cash reserves, potentially limiting GPI's financial flexibility and investment capability.

Rising Liabilities

Increasing liabilities may pressure GPI's balance sheet, potentially impacting its ability to finance operations and growth without increasing financial risk.

Earnings Volatility

Significant EPS decline suggests earnings instability, which could affect investor confidence and the company's ability to sustain long-term profitability.

GPI SpA Business Overview & Revenue Model

Company Description

GPI SpA (GPI) is an Italian company that specializes in providing IT solutions and services primarily for the healthcare sector. Established in the early 1980s, GPI operates in various sectors including healthcare, public administration, and social services. The company offers a wide range of products and services, including software solutions for hospital management, patient care, and electronic health records, as well as IT infrastructure and consulting services. GPI aims to enhance the efficiency and effectiveness of healthcare providers through innovative technology and integrated services.

How the Company Makes Money

GPI generates revenue primarily through the sale of software licenses and IT services tailored for the healthcare sector. The company has a diversified revenue model that includes recurring income from maintenance contracts, subscription services, and consulting fees. Additionally, GPI benefits from partnerships with healthcare institutions and government entities, which provide stable contracts and projects. The company also engages in the development of specialized solutions that address specific needs in the healthcare market, further enhancing its revenue streams. By continuously innovating and expanding its service offerings, GPI positions itself for growth in a market that increasingly relies on digital transformation.

GPI SpA Financial Statement Overview

Summary

GPI SpA demonstrates strong financial health with significant revenue and profit growth, enhanced profitability margins, and a solid balance sheet. Despite negative free cash flow due to high capital expenditures, the company's operational cash generation is improving. Maintaining this trajectory while managing liabilities will be crucial for sustained financial performance.

Income Statement

GPI SpA has shown robust revenue growth, with a significant increase from €433.42 million in 2023 to €509.70 million in 2024, reflecting a 17.60% growth rate. The company maintains a strong gross profit margin at 56.60% in 2024, up from 20.93% in 2023, highlighting efficient cost management. The net profit margin improved significantly to 20.41% in 2024 from 1.66% in 2023, indicating enhanced profitability. EBIT and EBITDA margins have also strengthened, at 7.21% and 19.61%, respectively, showcasing improved operational performance.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.94, indicating a balanced leverage position. The equity ratio of 32.32% suggests a strong equity base relative to total assets. Return on equity increased to 33.75% in 2024 from 3.09% in 2023, demonstrating efficient use of equity to generate profits. However, the company's total liabilities have grown, which could pose a risk if leverage increases further.

Cash Flow

Operating cash flow has improved to €35.91 million in 2024 from €19.38 million in 2023, indicating stronger cash generation from operations. However, free cash flow remains negative at -€15.48 million due to high capital expenditures. The operating cash flow to net income ratio is 0.35, showing moderate cash generation relative to net income. Continued focus on managing capital expenditures could improve free cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	523.89M	509.70M	433.42M	346.95M	323.89M	268.36M
Gross Profit	96.74M	288.52M	90.76M	246.23M	229.57M	185.51M
EBITDA	86.53M	99.93M	67.96M	48.60M	47.35M	38.65M
Net Income	21.86M	104.04M	7.19M	9.72M	11.05M	11.99M
Balance Sheet
Total Assets	1.06B	953.91M	855.13M	713.24M	428.51M	414.07M
Cash, Cash Equivalents and Short-Term Investments	109.31M	57.63M	41.53M	180.92M	44.87M	81.81M
Total Debt	412.05M	289.63M	427.50M	262.45M	208.98M	203.54M
Total Liabilities	772.11M	647.71M	623.78M	464.29M	322.28M	330.79M
Stockholders Equity	293.27M	308.33M	232.59M	248.90M	105.06M	81.47M
Cash Flow
Free Cash Flow	36.44M	-15.48M	20.99M	-19.68M	-7.89M	-3.03M
Operating Cash Flow	57.44M	35.91M	39.75M	5.58M	12.75M	10.35M
Investing Cash Flow	-89.30M	13.96M	-229.95M	-64.91M	-36.04M	-47.61M
Financing Cash Flow	63.23M	-44.77M	74.30M	195.01M	-15.94M	32.00M

GPI SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:GPI, the sentiment is Negative. The current price of 16.32 is below the 20-day moving average (MA) of 16.67, below the 50-day MA of 16.75, and above the 200-day MA of 13.68, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 32.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:GPI.

GPI SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPI	63 Neutral	€470.08M	21.57	―	5.21%	11.25%	-76.44%
EUK	54 Neutral	€15.92M	-13.81	―	―	4.81%	-260.95%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

GPI SpA Corporate Events

GPI S.p.A. Announces Bondholders’ Meeting for Key Decisions

GPI S.p.A. has announced a Bondholders’ Meeting for its ‘Up to Euro 41,500,000 Senior Unsecured Fixed Rate Notes due 2031’ to discuss matters related to the bond loan’s regulation and associated guarantees. The meeting will be held in multiple calls starting December 22, 2025, and will involve decisions on pledges and assignments in favor of several banks. The meeting will be conducted exclusively through a designated representative, and bondholders must grant proxy to participate and vote.

Gpi S.p.A. Announces Strategic Merger of Subsidiaries

Gpi S.p.A. has announced the signing of merger agreements to incorporate its wholly-owned subsidiaries, Oslo Italia S.r.l. and BIM Italia S.r.l., with legal effects taking place in late 2025 and early 2026. This strategic move is expected to streamline operations and enhance Gpi’s positioning in the healthcare technology sector, potentially benefiting stakeholders by aligning fiscal and accounting effects with the current financial year.

GPI S.p.A. Faces Non-Renewal of Shareholder Agreements

GPI S.p.A. has announced that FM S.p.A. has decided not to renew the shareholder agreements from the investment agreement signed in June 2022, leading to the agreements lapsing in December 2025. This decision may impact GPI’s operations and stakeholder relationships, as the company will need to address the lapse and its implications in compliance with current legislation.

GPI SpA Reports Strong Growth in H1 2025, Driven by Healthcare Software Focus

GPI SpA reported strong financial results for the first half of 2025, with a 9.1% increase in revenue and a 14.8% rise in EBITDA, reflecting the success of its strategic focus on software for healthcare digital transformation. The company’s financial position has strengthened due to accelerated invoicing of Consip contracts and recent bond issuances, positioning it for sustainable growth and international expansion.