GPI SpA (GPI) AI Stock Analysis

• Market Cap: €416.50M
• Dividend Yield: 4.92%
• Average Volume (3M): 92.44K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.59
• Revenue Growth: 16.92%
• EPS Growth: N/A
• Country: IT
• Employees: 7,812
• Sector: Healthcare
• Sector Strength: 40
• Industry: Conglomerates
• EPS (TTM): 0.63
• Shares Outstanding: 28,906,881
• 10 Day Avg. Volume: 156,974
• 30 Day Avg. Volume: 92,442
• PEG Ratio: 0.18
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.87
• 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: €20.00
• Price Target Upside: 38.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: €16.00 ▲(10.65%Upside)

GPI SpA's overall score is driven by a strong valuation and robust financial performance, despite some technical overbought signals. The company's low P/E ratio and high dividend yield offer value to investors, while its financial statements indicate solid growth and profitability. Technical analysis suggests caution due to potential short-term volatility.

Positive Factors

International Contracts Growth

GPI announced new international contracts worth €15mn, highlighting significant growth in the Software segment.

Pharmaceutical Logistics Expansion

GPI strengthens its presence in pharmaceutical logistics with a €2.1mn contract, consolidating its position in a highly fragmented market.

Strategic Geographical Expansion

Strategic geographical expansion focuses on France, USA, and Saudi Arabia, with software as the catalyst for foreign operations.

Negative Factors

Stock Performance

The stock's performance over the last 3 months was approximately -17%.

Valuation Concerns

GPI trades at an EV/EBITDA NTM of 5.2x, which is in the low range compared to historical 3-year valuations, representing an attractive entry point.

GPI SpA Business Overview & Revenue Model

Company Description

GPI S.p.A. operates in the field of social-healthcare IT services and hi-tech services for healthcare markets. The company offers software solutions for health administration, clinical system, health social care, blood and tissue bank, personnel management, continuum care, public administration, safety and prevention, chronic illness management and patient care, business intelligence and data analytics, health cooperation, and people relationship management. It also provides healthcare administration services, including advanced single booking center system and contract center that reduces the waiting time; advanced healthcare technologies; and health care services. In addition, the company offers Phasys System, a hardware and software solution for medication management in healthcare structures; RIEDL Phasys System for the automation of medicine distribution in pharmacies; ICT services; public administration payment solutions; and retail payment solutions. Further, it provides desktop services, such as design, implementation, and maintenance of technological infrastructure; consultancy and IT assistance; supply of solutions for public administration; help desk services and facility management for local and central PA, healthcare providers, multi-utilities, and private companies; trouble ticketing system; and design of integrated systems. The company was founded in 1988 and is headquartered in Trento, Italy. GPI S.p.A. is a subsidiary of FM S.r.l.

How the Company Makes Money

GPI SpA generates revenue primarily through the sale of its technology solutions and services to healthcare providers and institutions. Key revenue streams include licensing fees for its software products, service fees for implementation and integration of its systems, and ongoing maintenance and support contracts. Additionally, GPI forms strategic partnerships with healthcare organizations and governments, which often lead to long-term projects and contracts that contribute significantly to its earnings. The company also invests in research and development to continually enhance its offerings, ensuring a competitive edge in the evolving healthcare technology market.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	509.70M	433.42M	356.88M	323.89M	268.36M
Gross Profit	288.52M	90.76M	246.23M	229.57M	185.51M
EBITDA	99.93M	67.96M	48.60M	47.35M	38.65M
Net Income	104.04M	7.19M	9.72M	11.05M	11.99M
Balance Sheet
Total Assets	953.91M	855.13M	713.24M	428.51M	414.07M
Cash, Cash Equivalents and Short-Term Investments	57.63M	41.53M	180.92M	44.87M	81.81M
Total Debt	289.63M	323.63M	262.45M	188.94M	203.54M
Total Liabilities	647.71M	623.78M	464.29M	322.28M	330.79M
Stockholders Equity	308.33M	232.59M	248.90M	105.06M	81.47M
Cash Flow
Free Cash Flow	-15.48M	-30.15M	-19.68M	-7.89M	-3.03M
Operating Cash Flow	35.91M	19.38M	5.58M	12.75M	10.35M
Investing Cash Flow	13.96M	-229.95M	-64.91M	-36.04M	-47.61M
Financing Cash Flow	-44.77M	74.30M	195.01M	-15.94M	64.63M

GPI SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:GPI, the sentiment is Positive. The current price of 14.46 is above the 20-day moving average (MA) of 12.46, above the 50-day MA of 11.23, and above the 200-day MA of 10.38, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 83.02 is Negative, neither overbought nor oversold. The STOCH value of 82.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:GPI.

GPI SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPI	78 Outperform	€416.50M	4.01		4.92%	16.92%	―
Sector *	60 Neutral	HK$17.01B	5.47	-7.44%	3.80%	11.55%	-28.15%
6I50	―	€51.90M	20.09	7.16%	―	―	―
GHC	―	€450.70M	20.11	6.75%	1.74%	―	―
EUK	―	€17.51M	24.13		―	―	―
COSMO	―	€18.79M	―		―	―	―
SVS	―	€42.85M	7.64		3.12%	―	―

GPI SpA Corporate Events

GPI S.p.A. Advances Strategic Mergers and Achieves Key Performance Indicators

GPI S.p.A. has approved merger projects to incorporate its wholly-owned subsidiaries, BIM Italia S.r.l. and Oslo Italia S.r.l., into the parent company, following no objections from shareholders. This strategic move aligns with GPI’s broader goals of enhancing its operational efficiency and market positioning. Additionally, GPI has achieved the Key Performance Indicators set out in its 2022-2024 Industrial Plan, reflecting its commitment to strategic growth and stakeholder value, as outlined in the Investment Agreement with FM S.p.A., CDP Equity S.p.A., and Fausto Manzana.

The most recent analyst rating on (IT:GPI) stock is a Buy with a EUR13.70 price target. To see the full list of analyst forecasts on GPI SpA stock, see the IT:GPI Stock Forecast page.

Gpi S.p.A. Completes Full Acquisition of TESI to Enhance Global Healthcare Solutions

Gpi S.p.A. has completed the acquisition of the remaining 35% stake in TESI ELETTRONICA E SISTEMI INFORMATIVI S.p.A. S.B., making it the sole shareholder. This acquisition aligns with Gpi’s international growth strategy in high-profit sectors and enhances its technology offerings through the integration of TESI and Evolucare’s solutions. The move strengthens Gpi’s market position, particularly in diagnostics, radiological, clinical, and surgical imaging, and facilitates entry into new segments such as Laboratory Information System software and Digital Pathology. The acquisition is expected to bolster Gpi’s offerings and expand its reach in both Italian and global markets.

The most recent analyst rating on (IT:GPI) stock is a Buy with a EUR13.70 price target. To see the full list of analyst forecasts on GPI SpA stock, see the IT:GPI Stock Forecast page.

GPI SpA Completes Full Acquisition of TESI to Boost Global Healthcare Software Offerings

GPI SpA has acquired the remaining 35% of TESI Elettronica e Sistemi Informativi S.p.A., becoming its sole shareholder, as part of its international growth strategy in high-margin software sectors. This acquisition, along with the integration of TESI and Evolucare’s solutions, strengthens GPI’s technological offerings, particularly in diagnostics and digital pathology, and enhances its market presence in Italy and internationally.

The most recent analyst rating on (IT:GPI) stock is a Buy with a EUR13.70 price target. To see the full list of analyst forecasts on GPI SpA stock, see the IT:GPI Stock Forecast page.

GPI SpA Moves Forward with Strategic Mergers

GPI SpA has registered merger projects to incorporate BIM Italia S.r.l. and Oslo Italia S.r.l., both wholly owned subsidiaries, into its operations. This strategic move, subject to approval by the Board of Directors or potentially the Extraordinary Shareholders’ Meeting, aims to streamline GPI’s corporate structure and enhance its market position, reflecting its commitment to expanding its influence in the healthcare sector.

The most recent analyst rating on (IT:GPI) stock is a Buy with a EUR13.70 price target. To see the full list of analyst forecasts on GPI SpA stock, see the IT:GPI Stock Forecast page.

Gpi SpA Streamlines Operations with Subsidiary Mergers

Gpi SpA has approved merger projects to incorporate its wholly owned subsidiaries, BIM Italia S.r.l. and Oslo Italia S.r.l., into the parent company. This strategic move aims to streamline operations, optimize resources, and achieve economic and operational synergies, enhancing the company’s efficiency and market positioning.

The most recent analyst rating on (IT:GPI) stock is a Buy with a EUR13.70 price target. To see the full list of analyst forecasts on GPI SpA stock, see the IT:GPI Stock Forecast page.

GPI S.p.A. Secures €41.5 Million Bullet Bond Loan for Strategic Growth

GPI S.p.A. has successfully placed a Bullet Bond Loan of up to €41.5 million, with an initial tranche of €31.5 million, to institutional investors. This move, aimed at supporting its strategic growth and expansion into international markets, underscores GPI’s commitment to enhancing healthcare systems through digital transformation.

The most recent analyst rating on (IT:GPI) stock is a Buy with a EUR13.70 price target. To see the full list of analyst forecasts on GPI SpA stock, see the IT:GPI Stock Forecast page.

GPI S.p.A. Registers Bullet Bond Loan Resolution

GPI S.p.A. announced the registration of its Bullet Bond Loan resolution with the Business Register of Trento, marking a significant step in its financial operations. This move aligns with GPI’s strategic focus on sustainability and international market expansion, potentially enhancing its industry positioning and stakeholder confidence.

GPI SpA Announces €41.5 Million Bullet Bond Loan Resolution

GPI SpA has announced the resolution of a Bullet Bond Loan with a maximum amount of €41.5 million, set to mature in six years. This strategic financial move is expected to support the company’s operations and strengthen its position in the healthcare technology market, aligning with its mission to enhance healthcare systems through digital transformation.

GPI SpA Approves 2024 Financials and Announces Dividend

GPI SpA’s Shareholders’ Meeting approved the 2024 financial statements, reporting a profit of 86.4 million euros, and resolved to distribute a dividend of 0.50 euros per share. The meeting also appointed new members to the Board of Statutory Auditors and integrated the Board of Directors, indicating a strategic focus on governance and shareholder value. The authorization for share buybacks aims to enhance liquidity and support stock incentive plans, reflecting a commitment to financial stability and market confidence.