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

• Market Cap: €596.73M
• Dividend Yield: 6.67%
• Average Volume (3M): 126.00K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.60
• Revenue Growth: 3.04%
• EPS Growth: -12.22%
• Country: IT
• Employees: 861
• Sector: Services
• Sector Strength: N/A
• Industry: Food Distribution
• EPS (TTM): 0.27
• Shares Outstanding: 66,525,120
• 10 Day Avg. Volume: 131,047
• 30 Day Avg. Volume: 125,997
• PEG Ratio: -1.82
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 18.11
• 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: €11.77
• Price Target Upside: 30.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €10.00 ▲(11.23% Upside)

MARR S.p.A.'s stock score is primarily driven by its solid financial performance and attractive valuation. The company's stable revenue growth and operational efficiency are positive, but increased leverage and cash conversion challenges pose risks. The technical analysis indicates a bearish trend, which slightly offsets the positive valuation. Overall, the stock presents a balanced risk-reward profile with a focus on monitoring leverage and market trends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates MARR's ability to maintain its market position and expand its customer base, supporting long-term stability.

Cash Flow Generation

Strong free cash flow growth enhances MARR's ability to reinvest in operations, reduce debt, and provide shareholder returns, supporting financial health.

Operational Efficiency

Stable EBIT and EBITDA margins demonstrate MARR's effective cost management and operational efficiency, crucial for sustaining profitability.

Negative Factors

Increased Leverage

Higher leverage can increase financial risk and limit flexibility, potentially impacting MARR's ability to invest in growth opportunities.

Profitability Pressure

Declining net profit margins suggest challenges in maintaining profitability, which could affect MARR's long-term financial performance.

Cash Conversion Challenges

Low cash conversion efficiency may hinder MARR's ability to fund operations and growth initiatives, impacting financial flexibility.

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

Company Description

MARR S.p.A. commercializes and distributes perishable, non-perishable, frozen, and deep-frozen food products for foodservice operators in Italy, the European Union, and internationally. It offers meat products, such as poultry, beef, horse meat, mutton and lamb, game, pork, and veal products; and seafood products, including fresh and saltwater fish, lobsters and scampi, squids, calamari and molluscs, shrimps, fillets, sliced and pre-prepared items, tails and prawns, fresh fish products, and cuttlefishes and frozen octopuses. The company also provides grocery products comprising biscuits and sweets, chocolates and candies, preserved products, vegetable preserves, ice cream and pastries, honey, jams and spread creams, oil and vinegar, prepared and floury products, rice, pasta, pizza, salt, spices and ethnic, sauces and seasoning, fruits and vegetables, and gluten-free and organic products, as well as gastronomy services. In addition, it provides lard and shortening, milk, dairy products and cheese, cured meats, and eggs and egg products, as well as specialty foodstuffs made from pork, beef, poultry, and game; and beverages, liqueurs, and wines. Further, the company offers nonfood products, such as tablecloths and napkins, cleaning products and accessories, laundry products, hygiene, dishwashing, handwashing, and disposable products; and table dishes, cutlery, glasses, induction pots and pans, knife sets, buffet assortment, baking tins, patty pans and piping nozzles, and other kitchen products. Additionally, it offers various private label products. The company serves bars, fast food outlets, hotels, restaurants, canteens, and chains operators. It operates through a logistics-distribution network comprising approximately 40 distribution centers and agents with warehouses, cash and carry stores, and 800 delivery vehicles. The company was founded in 1972 and is headquartered in Rimini, Italy. MARR S.p.A. is a subsidiary of Cremonini S.p.A.

How the Company Makes Money

MARR generates revenue primarily through the wholesale distribution of food products to foodservice operators, which constitutes its core revenue stream. The company leverages a vast logistics and distribution network to supply a wide range of products including fresh meats, seafood, dairy, and dry goods. MARR also benefits from strategic partnerships with local and international suppliers, enhancing its product offerings and market reach. Additionally, the company may engage in value-added services such as customized delivery solutions and inventory management for its clients, further enhancing its revenue potential. The scale of operations, combined with effective supply chain management, enables MARR to maintain competitive pricing and secure long-term contracts with major clients in the foodservice industry.

MARR S.p.A. Financial Statement Overview

Summary

MARR S.p.A. demonstrates solid revenue growth and operational efficiency, with a stable revenue growth trajectory and healthy gross profit margins. However, the company faces challenges with high leverage and declining free cash flow, which could impact future investments 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	2.07B	2.03B	2.03B	1.88B	1.43B	1.07B
Gross Profit	417.93M	421.05M	428.88M	378.81M	313.34M	211.98M
EBITDA	97.54M	102.94M	102.37M	64.35M	77.07M	19.63M
Net Income	36.78M	42.72M	47.13M	26.55M	35.07M	-2.41M
Balance Sheet
Total Assets	1.33B	1.19B	1.23B	1.16B	1.17B	1.05B
Cash, Cash Equivalents and Short-Term Investments	210.72M	208.32M	223.41M	191.66M	249.99M	251.49M
Total Debt	466.06M	446.36M	456.74M	415.94M	394.21M	451.99M
Total Liabilities	1.01B	845.90M	872.49M	821.00M	824.24M	716.58M
Stockholders Equity	329.85M	345.63M	355.47M	341.46M	349.51M	338.11M
Cash Flow
Free Cash Flow	23.88M	35.76M	41.10M	-20.83M	110.08M	17.12M
Operating Cash Flow	56.83M	64.24M	67.74M	-8.02M	121.67M	30.78M
Investing Cash Flow	-32.66M	-29.20M	-28.51M	-16.72M	-13.92M	-13.90M
Financing Cash Flow	-73.83M	-50.14M	-7.49M	-33.59M	-109.25M	42.11M

MARR S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:MARR, the sentiment is Neutral. The current price of 8.99 is above the 20-day moving average (MA) of 8.80, below the 50-day MA of 9.16, and below the 200-day MA of 9.36, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 52.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
ORS	77 Outperform	€303.96M	9.13	12.31%	2.88%	10.37%	24.91%
COM	69 Neutral	€1.28B	21.42	―	1.79%	-20.36%	-23.31%
MARR	69 Neutral	€596.73M	15.59	10.96%	6.67%	3.04%	-12.22%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
AV	54 Neutral	€354.81M	-36.03	―	―	7.94%	91.30%