Piaggio & C. SPA (PIA) AI Stock Analysis

• Market Cap: €677.43M
• Dividend Yield: 8.16%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.67
• Revenue Growth: -13.75%
• EPS Growth: -42.27%
• Country: IT
• Employees: 5,542
• Sector: Industrials
• Sector Strength: 86
• Industry: Auto - Manufacturers
• EPS (TTM): 0.09
• Shares Outstanding: 358,153,630
• 10 Day Avg. Volume: 1,247,300
• 30 Day Avg. Volume: 1,281,132
• PEG Ratio: -0.74
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.22
• 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: €3.00
• Price Target Upside: 57.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: €2.00 ▲(5.26%Upside)

Piaggio & C. SPA's overall stock score is primarily driven by a stable financial performance with revenue growth challenges and significant leverage. The fair valuation with a high dividend yield boosts attractiveness. Technical indicators suggest mild positive momentum, supporting a moderate investment outlook.

Piaggio & C. SPA Business Overview & Revenue Model

Company Description

Piaggio & C. SpA, together with its subsidiaries, develops, manufactures, and distributes two-wheeler and commercial motor vehicles. The company provides two-wheelers, including scooters, motorcycles, and mopeds, as well as related spare parts and accessories under the Piaggio, Vespa, Aprilia, Moto Guzzi, Gilera, Derbi, and Scarabeo brands. It also offers three-and four-wheeler light commercial vehicles, as well as related spare parts and accessories for commercial and private use under the Ape and Porter brands; and smart robots for transportation. In addition, the company sells engines to third parties; conducts two-wheeler sports championships; and provides technical services. It distributes its vehicles primarily through dealers and importers in Europe, the Middle East, Africa, the Americas, the Asia Pacific, and India. The company was founded in 1884 and is headquartered in Pontedera, Italy. Piaggio & C. SpA is a subsidiary of IMMSI S.p.A.

How the Company Makes Money

Piaggio & C. SPA generates revenue primarily through the sale of its motor vehicles, which include scooters, motorcycles, and light commercial vehicles. The company capitalizes on its strong brand portfolio, with iconic names like Vespa contributing significantly to its sales. Piaggio's revenue streams are diversified across different geographical regions, with a notable presence in Europe, Asia, and the Americas. Additionally, the company benefits from after-sales services and the sale of spare parts and accessories. Strategic partnerships and collaborations enhance its market reach and product offerings, further supporting its financial performance. Piaggio also invests in research and development to innovate and maintain its competitive edge in the mobility sector.

Piaggio & C. SPA Financial Statement Overview

Summary

Piaggio & C. SPA shows stable profitability margins and operational efficiency. However, it faces challenges in revenue growth and significant leverage, which could be risks. The cash flow situation, especially the negative free cash flow, requires attention for long-term sustainability.

Income Statement

Piaggio & C. SPA's income statement reflects a mixed performance. The TTM (Trailing-Twelve-Months) shows a slight decline in total revenue compared to the previous annual figure, indicating a revenue growth challenge. The gross profit margin stands at approximately 19%, while the net profit margin is around 3.5%, both suggesting moderate profitability. However, the company's EBIT margin of about 8% and EBITDA margin of 16.6% denote stable operational efficiency. The declining revenue trend requires attention, yet the maintained profitability levels provide a stable outlook.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio is approximately 1.76, indicating significant leverage which could pose a risk in volatile markets. The return on equity (ROE) is around 13.6%, reflecting decent profitability for shareholders. The equity ratio is 21.1%, suggesting a moderate asset financing through equity. While the company maintains a stable ROE, the high leverage requires careful management to avoid potential financial stress.

Cash Flow

The cash flow statement indicates challenges in cash generation. The free cash flow has declined notably, and the free cash flow growth rate is negative, pointing to potential liquidity issues. The operating cash flow to net income ratio is approximately 2.67, showing good conversion of net income into cash. However, the negative free cash flow to net income ratio highlights a concern in generating cash after capital expenditures. These cash flow challenges need addressing to ensure long-term financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70B	1.99B	2.09B	1.67B	1.31B
Gross Profit	384.60M	519.17M	499.23M	352.93M	298.87M
EBITDA	285.12M	326.23M	296.50M	248.76M	193.92M
Net Income	67.22M	91.05M	84.89M	60.05M	31.32M
Balance Sheet
Total Assets	1.89B	1.87B	1.96B	1.84B	1.66B
Cash, Cash Equivalents and Short-Term Investments	149.69M	187.90M	242.62M	260.87M	230.09M
Total Debt	683.67M	621.93M	610.84M	641.19M	655.86M
Total Liabilities	1.47B	1.45B	1.54B	1.43B	1.29B
Stockholders Equity	418.31M	416.15M	417.98M	404.24M	372.16M
Cash Flow
Free Cash Flow	-38.64M	23.92M	87.82M	72.35M	52.86M
Operating Cash Flow	144.06M	185.22M	239.50M	226.50M	193.21M
Investing Cash Flow	-165.99M	-155.49M	-148.53M	-146.77M	-135.33M
Financing Cash Flow	-11.75M	-87.58M	-107.68M	-58.37M	-7.38M

Piaggio & C. SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:PIA, the sentiment is Negative. The current price of 1.9 is below the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.86, and below the 200-day MA of 1.97, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 31.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:PIA.

Piaggio & C. SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PIA	69 Neutral	€677.43M	14.86	10.60%	8.16%	-13.75%	-42.27%
Sector *	58 Neutral	HK$14.20B	4.67	-2.78%	5.88%	3.78%	-54.63%
STLA	―	$35.48B	4.83	-3.01%	7.98%	―	―
0QWN	―	€5.49B	123.25	5.12%	―	―	―
0RPV	―	€4.31B	10.30	12.04%	3.53%	―	―
0EWD	―	€3.83B	17.74	11.06%	0.89%	―	―
IVG	71 Outperform	€6.27B	15.05		1.82%	-6.97%	40.74%