Orsero SpA (ORS) AI Stock Analysis

• Market Cap: €252.84M
• Dividend Yield: 3.46%
• Average Volume (3M): 27.38K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.39
• Revenue Growth: 1.98%
• EPS Growth: -42.30%
• Country: IT
• Employees: 2,208
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Food Distribution
• EPS (TTM): 0.41
• Shares Outstanding: 17,682,500
• 10 Day Avg. Volume: 35,963
• 30 Day Avg. Volume: 27,379
• PEG Ratio: 0.85
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.00
• 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: €24.30
• Price Target Upside: 68.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Neutral
• Price Target: ―

Orsero SpA demonstrates robust financial health with consistent revenue growth and no debt. However, recent declines in profitability and cash flow suggest challenges. The stock's undervaluation and attractive dividend yield are positives, but the technical analysis indicates a downward price trend, potentially affecting short-term performance.

Positive Factors

Financial Performance

Orsero reported a remarkable Q1-25 characterized by double-digit top-line growth, driven by excellent performance in the Iberian Peninsula and Mexico, coupled with solid results in Italy and France.

Market Valuation

Orsero's shares currently trade at attractive multiples for a healthy company with a solid cash generation profile and a resilient business model.

Profitability

Adjusted EBITDA grew by 28.0% YoY, reaching €21.5m, confirming the growth trajectory of the group's profitability.

Negative Factors

Cost Impact

Profitability should be slightly impacted by the higher purchasing costs.

Currency Fluctuation

The current unfavourable USD appreciation should impact gross margin, mainly of Bananas.

Earnings Forecast

FY25 guidance came slightly below our estimates on EBITDA and Net Income.

Orsero SpA Business Overview & Revenue Model

Company Description

Orsero SpA (ORS) is a leading company in the distribution and marketing of fresh fruit and vegetables. Operating primarily in Southern Europe, the company is involved in the import, production, packaging, and distribution of a wide range of fruit and vegetable products. Orsero SpA is known for its extensive network and strong presence in the fresh produce sector, serving retail and wholesale markets with a focus on quality and sustainability.

How the Company Makes Money

Orsero SpA generates revenue through its core operations in the distribution and marketing of fresh produce. The company's revenue streams include the sale of fresh fruit and vegetables to retailers, wholesalers, and food service providers. Orsero SpA sources products from a variety of global suppliers, including its own production facilities, and leverages its logistics and distribution capabilities to deliver these products efficiently to its customers. The company also benefits from strategic partnerships and agreements with key stakeholders in the agricultural and retail sectors, which help to ensure a consistent supply chain and enhanced market reach. Additionally, value-added services such as packaging and branding contribute to its earnings.

Orsero SpA Financial Statement Overview

Summary

Orsero SpA's revenue growth and operational efficiency are strong, with a solid balance sheet featuring no debt. However, recent declines in net income and cash flows indicate pressure on profitability and cash management.

Income Statement

Orsero SpA's revenue has shown consistent growth over the years, with a notable increase from 2019 to 2024. The company has maintained a stable gross profit margin, although there's a noticeable decline in net profit margin over the last year. The EBIT and EBITDA margins are solid, indicating operational efficiency. However, the downturn in net income from the previous year's high suggests some pressure on profitability.

Balance Sheet

The company exhibits a strong balance sheet with zero total debt as of 2024, significantly reducing financial risk. The equity ratio has improved, reflecting growing financial stability. Return on Equity (ROE) is healthy, although lower than in previous years, indicating efficient use of equity in generating profits. The increase in stockholders' equity over the years shows robust financial backing.

Cash Flow

Orsero SpA's cash flow position is stable with a positive operating cash flow, although it has decreased from previous years. The free cash flow has also declined, indicating reduced cash available for discretionary spending. The operating cash flow to net income ratio suggests a strong ability to convert profits into cash, but the free cash flow growth rate has been negative, pointing to potential cash management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.57B	1.54B	1.20B	1.07B	1.04B
Gross Profit	146.91M	171.48M	118.85M	94.22M	87.81M
EBITDA	66.74M	84.60M	68.33M	49.48M	44.89M
Net Income	26.80M	47.28M	32.27M	18.29M	12.22M
Balance Sheet
Total Assets	686.32M	670.53M	521.96M	488.65M	458.98M
Cash, Cash Equivalents and Short-Term Investments	85.36M	90.06M	69.05M	56.42M	40.73M
Total Debt	0.00	218.67M	137.26M	140.53M	142.54M
Total Liabilities	429.92M	432.01M	320.47M	312.80M	298.87M
Stockholders Equity	254.71M	236.80M	201.09M	175.19M	159.62M
Cash Flow
Free Cash Flow	23.60M	63.64M	25.48M	23.86M	-3.55M
Operating Cash Flow	49.93M	75.17M	54.87M	55.08M	37.99M
Investing Cash Flow	-27.25M	-63.10M	-31.07M	-33.35M	-10.98M
Financing Cash Flow	-27.38M	9.17M	-10.01M	-7.18M	-43.09M

Orsero SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:ORS, the sentiment is Positive. The current price of 14.44 is above the 20-day moving average (MA) of 14.19, above the 50-day MA of 13.90, and above the 200-day MA of 12.42, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:ORS.

Orsero SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORS	70 Neutral	€252.84M	8.36	11.62%	3.46%	1.98%	-42.30%
Sector *	69 Neutral	€2.75B	16.87	8.89%	3.58%	5.47%	-7.07%
CIR	67 Neutral	€534.98M	4.68	-1.45%	―	-23.48%	―
A2A	66 Neutral	€6.85B	8.29	16.17%	4.57%	2.73%	6.02%
MARR	63 Neutral	€651.95M	16.56	11.02%	6.15%	0.03%	-17.82%