LU-VE SpA (LUVE) AI Stock Analysis

• Market Cap: €730.59M
• Dividend Yield: 1.28%
• Average Volume (3M): 11.11K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.88
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IT
• Employees: 3,002
• Sector: Industrials
• Sector Strength: 87
• Industry: Construction
• EPS (TTM): 0.34
• Shares Outstanding: 22,234,367
• 10 Day Avg. Volume: 12,491
• 30 Day Avg. Volume: 11,109
• PEG Ratio: -2.52
• Price to Book (P/B): 2.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.28
• 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: €39.20
• Price Target Upside: 19.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: €34.00 ▲(3.34%Upside)

LU-VE SpA's stock is supported by strong technical signals and solid financial performance, though valuation metrics suggest moderate pricing. The company's stable profitability and cash flow generation, coupled with positive market momentum, contribute significantly to the stock's appeal. However, the absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Competitive Advantage

The local-for-local industrial approach provides good protection against tariff risk, possibly representing a competitive advantage.

Financial Performance

LU-VE has improved profitability and generated over EUR 56M in operating cash flow thanks to the investments in production automation, process reorganisation and costs containment, despite lower volumes.

Order Backlog

Record order backlog enhances visibility on future trends, with the order book reaching a new high.

Negative Factors

Market Uncertainty

Short-term uncertainty remains high, posing challenges for near-term forecasts with possible delays in customer decision-making, especially for large data center and power generation projects.

LU-VE SpA Business Overview & Revenue Model

Company Description

LU-VE SpA (LUVE) is an Italian company engaged in the design, production, and distribution of heat exchangers and air conditioning systems. The company operates in sectors such as refrigeration, air conditioning, and industrial cooling. LU-VE's core products include heat exchangers, air coolers, and condensers, which are utilized across various industries including commercial refrigeration, industrial applications, and data centers.

How the Company Makes Money

LU-VE SpA generates revenue through the sale of its heat exchangers, air coolers, and condensers to a diverse range of industries. The company's revenue streams are primarily driven by its product sales in the refrigeration, air conditioning, and industrial cooling markets. LU-VE benefits from strategic partnerships and collaborations with distributors and clients worldwide, enhancing its market reach and distribution capabilities. Additionally, the company's focus on innovation and energy-efficient solutions contributes to its competitive advantage and market demand.

LU-VE SpA Financial Statement Overview

Summary

LU-VE SpA demonstrates solid financial health, balancing profitability, leverage, and cash flow generation effectively. The company maintains stable profit margins and efficient cash flow management, although revenue growth has seen minor setbacks. The moderate leverage and healthy return on equity indicate a sound financial strategy, with room for improvement in debt management and revenue expansion.

Income Statement

LU-VE SpA's income statement demonstrates stable profitability with a Gross Profit Margin consistently above 30%, indicating effective cost management. However, there is a slight decline in Total Revenue from 2024 to TTM, marking a negative Revenue Growth Rate of approximately -1.13%. The Net Profit Margin remained relatively stable around 5-6%, showcasing consistent profitability despite challenges in maintaining revenue growth.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a Debt-to-Equity Ratio of 1.59 in TTM, suggesting a reliance on debt financing but within a manageable range. The Return on Equity (ROE) is approximately 11.84% for TTM, reflecting decent returns on shareholder investments. The Equity Ratio is 29.62%, indicating a balanced financial structure, though there is room for reducing debt and bolstering equity.

Cash Flow

LU-VE SpA's cash flow statement shows strong operational efficiency with an Operating Cash Flow to Net Income Ratio of approximately 2.47 in TTM, highlighting robust cash generation relative to net earnings. The Free Cash Flow to Net Income Ratio is also high at 1.85, indicating healthy free cash flow generation. A positive Free Cash Flow Growth Rate of -1.36% from 2024 to TTM reflects stable cash flow management, despite slight fluctuations in operational cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	588.40M	615.82M	617.08M	491.20M	400.03M
Gross Profit	220.92M	211.36M	283.89M	233.40M	196.40M
EBITDA	73.57M	77.36M	101.69M	63.01M	42.62M
Net Income	34.50M	29.75M	47.71M	23.74M	9.88M
Balance Sheet
Total Assets	847.14M	785.47M	831.11M	712.57M	614.78M
Cash, Cash Equivalents and Short-Term Investments	304.06M	262.45M	290.17M	248.27M	222.94M
Total Debt	413.66M	381.29M	438.51M	369.36M	325.98M
Total Liabilities	591.70M	556.24M	619.65M	540.48M	463.85M
Stockholders Equity	249.43M	223.68M	206.75M	167.50M	146.93M
Cash Flow
Free Cash Flow	58.76M	35.20M	-3.36M	-9.44M	15.36M
Operating Cash Flow	77.05M	71.24M	33.31M	19.63M	40.37M
Investing Cash Flow	-19.65M	34.39M	-61.73M	-29.86M	-33.71M
Financing Cash Flow	3.99M	-68.06M	41.27M	22.96M	68.94M

LU-VE SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.90
• 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:LUVE, the sentiment is Positive. The current price of 32.9 is above the 20-day moving average (MA) of 31.30, above the 50-day MA of 30.77, and above the 200-day MA of 28.57, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 65.40 is Neutral, neither overbought nor oversold. The STOCH value of 89.74 is Negative, 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	73 Outperform	€498.85M	6.61	12.77%	5.32%	-15.75%	-57.23%
COM	72 Outperform	€877.55M	13.04		2.61%	-23.00%	-28.46%
LUVE	71 Outperform	€730.59M	23.37		1.28%	―	―
Sector *	67 Neutral	€2.74B	22.65	7.73%	3.02%	-1.29%	-31.61%
DAL	60 Neutral	€249.72M	120.28	0.50%	2.58%	-0.62%	-83.77%