IGD SIIIQ S.p.A. (IGD) AI Stock Analysis

• Market Cap: €386.20M
• Dividend Yield: 2.98%
• Average Volume (3M): 141.71K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.51
• Revenue Growth: -3.16%
• EPS Growth: N/A
• Country: US
• Employees: 139
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.06
• Shares Outstanding: 110,341,900
• 10 Day Avg. Volume: 134,484
• 30 Day Avg. Volume: 141,713
• PEG Ratio: 0.14
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 10.18
• 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: €4.00
• Price Target Upside: 12.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €3.50 ▼(-1.69% Downside)

The overall stock score of 60 reflects a combination of mixed financial performance, bearish technical indicators, and valuation concerns. The company's operational efficiency is offset by low profitability and challenges in cash flow generation. Technical analysis indicates a bearish trend, while the valuation suggests the stock may be overvalued. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Operational Efficiency

Strong EBIT and EBITDA margins indicate effective management and cost control, enhancing long-term profitability and competitive positioning.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility, supporting sustainable growth and resilience against economic fluctuations.

High Gross Profit Margin

A high gross profit margin suggests strong pricing power and cost efficiency, which can drive long-term profitability and shareholder value.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates potential challenges in converting revenue into profit, which could impact long-term financial health and growth prospects.

Negative Free Cash Flow Growth

Declining free cash flow generation can limit the company's ability to reinvest in growth opportunities and manage debt, affecting future expansion.

Volatility in Revenue and Profitability

Volatility in financial metrics suggests instability, which can hinder strategic planning and investor confidence, impacting long-term performance.

IGD SIIIQ S.p.A. Business Overview & Revenue Model

Company Description

Immobiliare Grande Distribuzione SIIQ S.p.A. is one of the main players in Italy's retail real estate market: it develops and manages shopping centers throughout the country and has a significant presence in Romanian retail distribution. Listed on the Star Segment of the Italian Stock Exchange, IGD was the first SIIQ (Società di Investimento Immobiliare Quotata or real estate investment trust) in Italy. IGD has a real estate portfolio valued at circa €2,322.62 million at 30 June 2020, comprised of, in Italy, 25 hypermarkets and supermarkets, 27 shopping malls and retail parks, 1 plot of land for development, 1 property held for trading and 5 other real estate properties. Following the acquisition of the company Winmark Magazine SA in 2008 14 shopping centers and an office building, found in 13 different Romanian cities, were added to the portfolio. An extensive domestic presence, a solid financial structure, the ability to plan, monitor and manage all phases of a center's life cycle, leadership in the retail real estate sector: these qualities summarize IGD's strong points.

How the Company Makes Money

IGD generates revenue primarily through rental income from its portfolio of retail properties. The company leases space to various tenants, including major retailers and food service providers, which constitutes a significant portion of its revenue stream. Additionally, IGD benefits from property management fees and income generated from ancillary services related to its shopping centers. The company also engages in asset recycling through the sale of non-core properties, which can provide capital for reinvestment in higher-yielding projects. Partnerships with retail brands and strategic collaborations enhance its market presence and contribute to stable occupancy rates, further solidifying IGD's financial performance.

IGD SIIIQ S.p.A. Financial Statement Overview

Summary

IGD SIIIQ S.p.A. demonstrates a mixed financial performance. The company shows operational efficiency with strong EBIT and EBITDA margins, but profitability remains a concern with low net profit margins and return on equity. The balance sheet is stable with moderate leverage, but cash flow metrics indicate potential challenges in free cash flow generation. Historical data reflects volatility in revenue, profitability, and cash flow, suggesting the need for strategic improvements to enhance financial stability and growth.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a positive revenue growth rate of 2.42%, and the company has maintained a healthy gross profit margin of 72.12%. However, the net profit margin is relatively low at 10.13%, indicating potential profitability challenges. The EBIT and EBITDA margins are strong at 59.28% and 61.98%, respectively, suggesting operational efficiency. Historical data shows fluctuations in revenue growth and profitability, with significant losses in previous years.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.83, indicating moderate leverage. The return on equity is low at 1.35%, suggesting limited profitability relative to shareholder equity. The equity ratio is not explicitly calculated but appears stable given the total assets and equity figures. Historical data shows a consistent debt-to-equity ratio, but return on equity has been negative in previous years, highlighting past profitability issues.

Cash Flow

Cash flow analysis reveals some concerns. The TTM free cash flow growth rate is negative at -18.26%, indicating a decline in free cash flow generation. The operating cash flow to net income ratio is 0.77, suggesting that operating cash flow covers net income adequately. The free cash flow to net income ratio is 0.66, indicating a reasonable conversion of net income to free cash flow. Historical data shows fluctuations in cash flow metrics, with periods of negative growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	131.98M	137.03M	148.62M	144.79M	145.53M	146.29M
Gross Profit	98.23M	107.88M	112.61M	108.59M	121.50M	122.86M
EBITDA	88.58M	41.29M	-28.81M	98.80M	112.96M	-57.41M
Net Income	19.52M	-30.08M	-81.73M	-22.32M	52.77M	-74.32M
Balance Sheet
Total Assets	1.84B	1.85B	2.06B	2.21B	2.41B	2.48B
Cash, Cash Equivalents and Short-Term Investments	3.38M	4.74M	6.07M	27.07M	158.08M	117.34M
Total Debt	34.73M	808.63M	974.67M	1.00B	1.14B	1.27B
Total Liabilities	859.08M	883.21M	1.06B	1.09B	1.23B	1.36B
Stockholders Equity	976.25M	970.27M	1.00B	1.12B	1.17B	1.11B
Cash Flow
Free Cash Flow	29.16M	27.07M	54.20M	50.29M	59.97M	39.19M
Operating Cash Flow	44.55M	46.46M	77.38M	82.98M	78.68M	54.03M
Investing Cash Flow	-200.00K	137.35M	-23.18M	-32.70M	95.16M	-14.81M
Financing Cash Flow	-46.70M	-185.14M	-75.16M	-181.33M	-133.01M	-50.46M

IGD SIIIQ S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IGD, the sentiment is Positive. The current price of 3.56 is above the 20-day moving average (MA) of 3.49, above the 50-day MA of 3.48, and above the 200-day MA of 3.27, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 63.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:IGD.

IGD SIIIQ S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
IGD	60 Neutral	€386.20M	19.79	2.01%	2.98%	-3.16%	―
ABT	53 Neutral	€77.45M	18.38	―	―	-73.55%	-7.83%