LU-VE SpA (LUVE) AI Stock Analysis

• Market Cap: €860.50M
• Dividend Yield: 1.08%
• Average Volume (3M): 10.33K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.65
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IT
• Employees: 3,002
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.49
• Shares Outstanding: 22,234,367
• 10 Day Avg. Volume: 14,933
• 30 Day Avg. Volume: 10,327
• PEG Ratio: 1.14
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 10.51
• 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: €43.75
• Price Target Upside: 12.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €42.00 ▲(8.39% Upside)

LU-VE SpA's strong financial performance, characterized by robust revenue growth and operational efficiency, is a key strength. However, the high leverage and declining free cash flow present potential risks. The technical analysis shows a positive trend, but the valuation suggests the stock may be overvalued, which tempers the overall score.

Positive Factors

Revenue Growth

The significant top-line expansion indicates strong demand for LU-VE's products and services, enhancing its market position and potential for future growth.

Operational Efficiency

Efficient cost management reflected in high gross margins supports sustainable profitability, allowing reinvestment in innovation and growth initiatives.

Product and Market Diversification

Diverse market applications reduce dependency on a single sector, providing stability and resilience against industry-specific downturns.

Negative Factors

High Leverage

High leverage can increase financial risk, particularly in volatile markets, potentially impacting LU-VE's ability to invest in growth opportunities.

Declining Free Cash Flow

Reduced free cash flow may limit LU-VE's capacity to fund new projects or return capital to shareholders, affecting long-term financial flexibility.

Moderate Cash Generation

Moderate cash generation relative to net income suggests potential liquidity constraints, which could hinder operational and strategic initiatives.

LU-VE SpA Business Overview & Revenue Model

Company Description

LU-VE SpA (LUVE) is an Italian multinational company specializing in the design and manufacturing of heat exchangers and cooling systems. Operating primarily in the HVAC (Heating, Ventilation, and Air Conditioning) sector, LUVE offers a range of products, including evaporators, condensers, and air coolers for various applications such as refrigeration, industrial cooling, and residential air conditioning. The company serves diverse markets, including food preservation, chemical, and pharmaceutical industries, with a strong emphasis on energy efficiency and sustainability in its product offerings.

How the Company Makes Money

LU-VE generates revenue through the sale of its core products, which include heat exchangers and cooling systems, to a variety of industries. The company has established key revenue streams from both domestic and international markets, leveraging its strong reputation and technical expertise. Additional revenue is derived from providing tailored solutions, maintenance services, and technical support to customers. Significant partnerships with manufacturers and distributors in the HVAC and refrigeration sectors enhance LUVE's market reach and contribute to its earnings, while ongoing investments in research and development allow the company to innovate and meet evolving customer needs.

LU-VE SpA Financial Statement Overview

Summary

LU-VE SpA demonstrates strong revenue growth and improving operational efficiency, as evidenced by its robust margins. However, the high leverage and declining free cash flow growth present potential risks. The company should focus on enhancing cash flow generation and reducing debt to strengthen its financial position.

Income Statement

LU-VE SpA shows a strong gross profit margin of 41.55% TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 5.35% TTM, reflecting some pressure on profitability. The revenue growth rate is impressive at 88.6% TTM, suggesting robust sales expansion. EBIT and EBITDA margins have improved to 9.67% and 14.39% TTM, respectively, highlighting operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is high at 1.67 TTM, indicating significant leverage, which could pose financial risk. Return on equity is moderate at 12.43% TTM, suggesting decent profitability relative to shareholder equity. The equity ratio stands at 28.67% TTM, indicating a balanced capital structure but with room for improvement in reducing leverage.

Cash Flow

Free cash flow has decreased by 22.5% TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.23 TTM, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is 0.65 TTM, showing a reasonable level of cash flow relative to earnings, but with potential for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	589.30M	588.40M	615.82M	617.08M	491.20M	400.03M
Gross Profit	267.22M	220.92M	211.36M	283.89M	233.40M	196.40M
EBITDA	86.95M	73.57M	77.36M	101.69M	63.01M	42.62M
Net Income	35.83M	34.50M	29.75M	47.71M	23.74M	9.88M
Balance Sheet
Total Assets	930.62M	847.14M	785.47M	831.11M	712.57M	614.78M
Cash, Cash Equivalents and Short-Term Investments	365.80M	304.06M	262.45M	304.13M	248.27M	222.94M
Total Debt	449.77M	413.66M	381.29M	438.51M	369.36M	325.98M
Total Liabilities	661.16M	591.70M	556.24M	619.65M	540.48M	463.85M
Stockholders Equity	262.52M	249.43M	223.68M	206.75M	167.50M	146.93M
Cash Flow
Free Cash Flow	36.31M	58.76M	35.20M	-3.36M	-9.44M	15.36M
Operating Cash Flow	64.32M	77.05M	71.24M	33.31M	19.63M	40.37M
Investing Cash Flow	-84.60M	-19.65M	34.39M	-61.73M	-40.08M	-33.71M
Financing Cash Flow	81.89M	3.99M	-68.06M	41.27M	33.18M	68.94M

LU-VE SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.75
• 50DMA: Positive
• 100DMA: Positive
• 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:LUVE, the sentiment is Positive. The current price of 38.75 is below the 20-day moving average (MA) of 38.92, above the 50-day MA of 37.57, and above the 200-day MA of 32.75, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:LUVE.

LU-VE SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FILA	72 Outperform	€495.28M	7.35	11.68%	8.24%	-11.91%	-61.21%
COM	69 Neutral	€1.28B	21.37	―	1.83%	-20.36%	-23.31%
LUVE	66 Neutral	€860.50M	24.02	―	1.08%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DAL	57 Neutral	€241.14M	84.97	0.71%	2.67%	0.19%	-76.65%