MARR S.p.A. (MARR) AI Stock Analysis

• Market Cap: €616.02M
• Dividend Yield: 6.48%
• Average Volume (3M): 125.67K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.65
• Revenue Growth: 1.46%
• EPS Growth: -16.08%
• Country: IT
• Employees: 861
• Sector: Services
• Sector Strength: N/A
• Industry: Food Distribution
• EPS (TTM): 0.24
• Shares Outstanding: 66,525,120
• 10 Day Avg. Volume: 105,726
• 30 Day Avg. Volume: 125,665
• 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: €12.97
• Price Target Upside: 40.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: €10.00 ▲(7.99% Upside)

MARR S.p.A.'s stock score is primarily driven by solid financial performance and attractive valuation. However, technical indicators suggest potential short-term weakness, and the company faces challenges with high leverage and cash flow management.

Positive Factors

Financial Outlook

Analyst remains confident that a normalization is ongoing, supporting a double-digit FCF yield in FY26E.

Market Performance

The growth outperformed the reference market in Italy, which posted a decrease in quantity consumption in the ‘Hotels, meals and out-of-home’ category by 2%.

Negative Factors

Cost Management

The margin contraction is mainly attributable to a 60bps erosion in service costs, affected by the start-up costs of the Center-South platform and by higher electricity rates.

Earnings

EBITDA came in at EUR 47.6M, a 14.5% contraction yoy, with a margin erosion of 80bps to 4.8%.

MARR S.p.A. Business Overview & Revenue Model

Company Description

MARR S.p.A. is a leading Italian company specialized in the distribution of food products, primarily serving the hotel, restaurant, and catering (Ho.Re.Ca) sectors. Established in 1979, MARR operates through a vast network of distribution centers and offers a wide range of products, including fresh and frozen foods, grocery items, and non-food products. The company is recognized for its ability to provide tailored solutions to meet the diverse needs of its clients in the foodservice industry, ensuring quality and efficiency in its supply chain operations.

How the Company Makes Money

MARR generates revenue primarily through the wholesale distribution of food products to the Ho.Re.Ca sector. The company's main revenue streams include sales of fresh and frozen products, dry goods, and non-food items. MARR has established significant partnerships with various food manufacturers, enabling it to offer a wide array of products at competitive prices. Additionally, MARR benefits from a robust logistics and distribution network, which enhances its operational efficiency and customer service. The company's focus on customized services for clients, along with its ability to adapt to market trends, contributes to its earnings growth.

MARR S.p.A. Financial Statement Overview

Summary

MARR S.p.A. demonstrates solid revenue growth and operational efficiency, but faces challenges with high leverage and declining free cash flow. The company should focus on improving cash flow generation and managing debt levels to sustain long-term growth and stability.

Income Statement

MARR S.p.A. shows a stable revenue growth trajectory with a TTM revenue growth rate of 76.5%, indicating strong sales performance. The gross profit margin remains healthy at 21.5%, though slightly lower than the previous year. Net profit margin is modest at 1.9%, reflecting competitive pressures in the food distribution industry. EBIT and EBITDA margins are stable, suggesting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.29, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity is decent at 11.2%, showing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the balance sheet reflects a stable asset base.

Cash Flow

MARR S.p.A. experienced a decline in free cash flow growth, down by 26.1% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is low at 0.13, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio is more favorable at 0.56, indicating some level of cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.05B	2.03B	2.03B	1.88B	1.43B	1.07B
Gross Profit	414.97M	421.05M	428.88M	378.81M	313.34M	211.98M
EBITDA	98.95M	102.94M	102.37M	64.35M	77.07M	19.63M
Net Income	37.91M	42.72M	47.13M	26.55M	35.07M	-2.41M
Balance Sheet
Total Assets	1.35B	1.19B	1.23B	1.16B	1.17B	1.05B
Cash, Cash Equivalents and Short-Term Investments	211.67M	208.32M	223.41M	191.66M	249.99M	251.49M
Total Debt	515.78M	446.36M	456.74M	415.94M	394.21M	451.99M
Total Liabilities	1.03B	845.90M	872.49M	821.00M	824.24M	716.58M
Stockholders Equity	315.31M	345.63M	355.47M	341.46M	349.51M	338.11M
Cash Flow
Free Cash Flow	18.71M	35.76M	41.10M	-20.83M	110.08M	17.12M
Operating Cash Flow	53.55M	64.24M	67.74M	-8.02M	121.67M	30.78M
Investing Cash Flow	-34.57M	-29.20M	-28.51M	-16.72M	-13.92M	-13.90M
Financing Cash Flow	-41.27M	-50.14M	-7.49M	-33.59M	-109.25M	42.11M

MARR S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:MARR, the sentiment is Negative. The current price of 9.26 is below the 20-day moving average (MA) of 9.54, below the 50-day MA of 9.80, and below the 200-day MA of 9.45, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 34.79 is Neutral, neither overbought nor oversold. The STOCH value of 5.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:MARR.

MARR S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MARR	63 Neutral	€616.02M	15.73	11.82%	6.48%	1.46%	-16.08%
Sector *	56 Neutral	$13.75B	13.24	10.03%	0.92%	7.13%	-12.93%
WRG	―	€284.35M	9.32	11.62%	―	―	―
COM	78 Outperform	€969.32M	16.57		2.32%	-20.36%	-23.31%
AV	54 Neutral	€341.98M	―		―	-1.20%	―
EGLA	―	€577.45M	35.90		―	―	―
FUM	―	€136.18M	12.98		2.41%	―	―