Interpump Group SPA (IP) AI Stock Analysis

• Market Cap: €4.37B
• Dividend Yield: 0.78%
• Average Volume (3M): 228.78K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.14
• Revenue Growth: -4.26%
• EPS Growth: -9.37%
• Country: IT
• Employees: 9,069
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.56
• Shares Outstanding: 108,879,295
• 10 Day Avg. Volume: 264,185
• 30 Day Avg. Volume: 228,779
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €45.50
• Price Target Upside: 7.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: €43.00 ▲(1.32% Upside)

Interpump Group SPA's overall stock score is driven by its strong financial performance, despite challenges in revenue growth and cash flow. Technical analysis provides mixed signals, and the valuation is fair but not compelling. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Profitability

Consistent profitability with gross margins at 35.13% and net margins at 10.41% indicates effective cost management and operational efficiency, supporting long-term financial health.

Robust Balance Sheet

A low debt-to-equity ratio reflects strong financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Efficient Use of Equity

A healthy return on equity indicates that the company is effectively using its equity base to generate profits, which is a positive sign for shareholders and long-term growth.

Negative Factors

Fluctuating Revenue Growth

Fluctuating revenue growth can signal challenges in market demand or competitive pressures, potentially impacting the company's ability to sustain long-term growth.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests potential liquidity issues, limiting the company's ability to reinvest in business expansion or manage unexpected expenses.

Decline in EPS Growth

A decline in EPS growth indicates potential challenges in maintaining profitability, which could affect investor confidence and the company's valuation over time.

Interpump Group SPA Business Overview & Revenue Model

Company Description

Interpump Group S.p.A. manufactures and markets high pressure plunger pumps in Italy, rest of Europe, North America, the Far East, Oceania, and internationally. It operates in two segments, Hydraulic Sector and Water Jetting Sector. The Hydraulic Sector segment produces and sells power take-offs that transmit drive from an industrial vehicle engine or transmission through hydraulic components; hydraulic cylinders that are components of hydraulic systems of various vehicle types; front-end and underbody cylinders for use in industrial vehicles in the construction sector; double acting cylinders, which are used in a range of applications, such as earthmoving and agricultural machinery, cranes and truck cranes, waste compactors, etc.; hydraulic hoses and fittings that are used in hydraulic equipment and water systems; and pumps, directional controls, valves, other hydraulic components, and ancillary products. The Water Jetting Sector segment provides high pressure pumps and systems that are used in a range of industrial sectors for the conveyance of fluids. This segment's high pressure plunger pumps are the primary components of pressure washers, as well as used for car wash installations, forced lubrication systems for machine tools, and inverse osmosis systems for seawater desalination plants. Its very high-pressure pumps and systems used for cleaning surfaces, ship hulls, and various hoses; removing machining burr; cutting and removing cement, asphalt, and paint coatings from stone, cement, and metal surfaces; and cutting solid materials. This segment also engages in drawing, blanking, and pressing sheet metals; and providing high pressure homogenizers, mixers, agitators, piston pumps, valves, and other machines for use in the food processing, chemicals, cosmetics, and pharmaceutical industries. The company was founded in 1977 and is based in Sant'Ilario d'Enza, Italy.

How the Company Makes Money

Interpump Group generates revenue primarily through the sale of its high-pressure pumps, hydraulic components, and systems. Key revenue streams include direct sales to industrial clients and distributors, as well as aftermarket services and replacement parts for their products. The company's strategic partnerships with various manufacturers and suppliers enhance its product offerings and market reach. Additionally, Interpump benefits from ongoing demand in sectors like construction and agriculture, which are critical to its earnings. The company also invests in research and development to innovate and improve existing products, further driving sales growth.

Interpump Group SPA Financial Statement Overview

Summary

Interpump Group SPA is financially sound with strong profitability and a stable balance sheet. The company maintains good margins and low leverage, but recent declines in revenue growth and negative free cash flow growth could pose challenges.

Income Statement

Interpump Group SPA demonstrates strong profitability with consistent gross and net profit margins over the years. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 35.13% and a net profit margin of 10.41%, indicating efficient cost management. However, the revenue growth rate has fluctuated, with a significant decline in the most recent annual report, which is a concern for future growth.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.015 in the TTM, showcasing strong financial stability. The return on equity is healthy at 10.73%, reflecting efficient use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis indicates a mixed performance. The operating cash flow to net income ratio is moderate at 0.45, suggesting decent cash generation relative to net income. However, the free cash flow growth rate is negative in the TTM, which could impact future liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.06B	2.08B	2.24B	2.08B	1.60B	1.29B
Gross Profit	723.51M	713.65M	779.97M	724.51M	574.69M	463.49M
EBITDA	441.21M	450.93M	520.21M	471.47M	359.23M	284.60M
Net Income	214.31M	227.06M	274.27M	266.50M	195.88M	170.98M
Balance Sheet
Total Assets	3.37B	3.39B	3.24B	3.13B	2.77B	2.15B
Cash, Cash Equivalents and Short-Term Investments	399.52M	392.64M	334.48M	358.27M	349.01M	343.17M
Total Debt	30.24M	801.68M	820.98M	899.23M	843.27M	611.92M
Total Liabilities	1.36B	1.37B	1.44B	1.56B	1.43B	999.31M
Stockholders Equity	2.00B	2.01B	1.79B	1.55B	1.33B	1.14B
Cash Flow
Free Cash Flow	214.59M	228.46M	164.23M	71.31M	250.09M	217.94M
Operating Cash Flow	325.71M	357.65M	332.55M	203.87M	257.23M	280.88M
Investing Cash Flow	-118.92M	-216.13M	-199.50M	-165.46M	-411.15M	-98.96M
Financing Cash Flow	-107.48M	-64.66M	-175.20M	-52.95M	157.06M	-55.76M

Interpump Group SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.44
• 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:IP, the sentiment is Positive. The current price of 42.44 is above the 20-day moving average (MA) of 40.93, above the 50-day MA of 40.50, and above the 200-day MA of 36.98, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 61.09 is Neutral, neither overbought nor oversold. The STOCH value of 83.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:IP.

Interpump Group SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DANR	―	€2.99B	12.36	―	0.99%	0.68%	-0.43%
DAN	―	€3.03B	17.82	―	0.65%	0.68%	-0.43%
IP	―	€4.37B	20.42	10.96%	0.78%	-4.26%	-9.37%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SAB	―	€156.54M	45.62	2.42%	4.17%	3.56%	-70.43%
BSS	―	€205.52M	-28.48	-2.86%	0.68%	-10.59%	-132.80%