Piaggio & C. SPA (PIA) AI Stock Analysis

• Market Cap: €658.86M
• Dividend Yield: 4.42%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.61
• Revenue Growth: -10.26%
• EPS Growth: -45.52%
• Country: IT
• Employees: 5,542
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.00
• Shares Outstanding: 358,153,630
• 10 Day Avg. Volume: 822,297
• 30 Day Avg. Volume: 1,125,959
• PEG Ratio: -0.43
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.46
• P/FCF Ratio: -20.06
• 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: €2.10
• Price Target Upside: 14.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €2.00 ▲(9.29% Upside)

The overall stock score reflects significant financial challenges, including declining revenues and high leverage, which are the most impactful factors. Technical indicators suggest bearish momentum, further weighing on the score. However, the valuation is relatively attractive, with a reasonable P/E ratio and a high dividend yield, providing some support.

Positive Factors

Iconic Brand Portfolio

The strong brand portfolio provides a competitive advantage, fostering customer loyalty and enabling premium pricing, which supports long-term revenue stability.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single market, enhancing resilience against market fluctuations and supporting sustainable growth.

Innovation and R&D Investment

Continuous investment in R&D ensures product innovation, helping the company adapt to market trends and maintain a competitive edge in the automotive sector.

Negative Factors

Declining Revenue

A declining revenue trend indicates challenges in market demand or competitive positioning, potentially impacting long-term financial health and strategic flexibility.

High Leverage

High leverage can constrain financial flexibility and increase risk, particularly if revenue pressures continue, impacting the company's ability to invest in growth.

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and invest in strategic initiatives without external financing.

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 through the sale of its vehicles, which include scooters, motorcycles, and light commercial vehicles. The company operates through several key revenue streams: retail sales from dealerships, export sales to international markets, and after-sales services, which encompass maintenance and spare parts. Additionally, Piaggio benefits from partnerships and collaborations with other automotive and technology firms, enhancing its product offerings and expanding its market reach. The company also invests in research and development to introduce new models and alternative mobility solutions, which help to attract a broader customer base and adapt to changing market demands.

Piaggio & C. SPA Financial Statement Overview

Summary

Piaggio & C. SPA faces challenges with declining revenue and profitability, high leverage, and cash flow constraints. While operational efficiency remains a strength, the company's financial health is impacted by high debt levels and negative free cash flow. Strategic measures to improve revenue growth and manage debt levels are crucial for future stability.

Income Statement

Piaggio & C. SPA's income statement reflects a challenging period with declining revenue and profitability. The TTM data shows a revenue decline of 4.89%, and the gross profit margin has decreased to 19.03% from 22.61% in the previous year. Net profit margin also slightly decreased to 3.48%. Despite these challenges, the company maintains a stable EBIT margin of 7.92% and an EBITDA margin of 16.62%, indicating operational efficiency. However, the negative revenue growth trend is a concern.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.76, indicating significant leverage, which could pose risks in a volatile market. Return on equity has decreased to 13.57% from 16.07% in the previous year, reflecting reduced profitability. The equity ratio stands at 21.23%, suggesting moderate financial stability. The high leverage and declining ROE are areas of concern.

Cash Flow

Cash flow analysis reveals a mixed picture. The free cash flow has improved significantly by 145.72% in the TTM period, but it remains negative, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.16, reflecting limited cash generation relative to net income. The negative free cash flow to net income ratio of -0.20 highlights ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.70B	1.99B	2.09B	1.67B	1.31B
Gross Profit	254.17M	384.60M	519.17M	499.23M	352.93M	298.87M
EBITDA	252.23M	285.12M	321.67M	289.79M	242.91M	188.94M
Net Income	36.67M	67.22M	91.05M	84.89M	60.05M	31.32M
Balance Sheet
Total Assets	1.82B	1.89B	1.87B	1.96B	1.84B	1.66B
Cash, Cash Equivalents and Short-Term Investments	159.59M	149.69M	187.90M	242.62M	260.87M	230.09M
Total Debt	687.75M	683.67M	621.93M	610.84M	641.19M	655.86M
Total Liabilities	1.43B	1.47B	1.45B	1.54B	1.43B	1.29B
Stockholders Equity	394.82M	418.31M	416.15M	417.98M	404.24M	372.16M
Cash Flow
Free Cash Flow	-29.93M	-38.64M	23.92M	87.82M	72.35M	52.86M
Operating Cash Flow	122.28M	144.06M	185.22M	239.50M	226.50M	193.21M
Investing Cash Flow	-149.08M	-165.99M	-155.49M	-148.53M	-146.77M	-135.33M
Financing Cash Flow	-51.33M	-11.75M	-87.58M	-107.68M	-58.37M	-7.38M

Piaggio & C. SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.83
• 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:PIA, the sentiment is Negative. The current price of 1.83 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.86, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.79 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
BRE	79 Outperform	€4.92B	11.97	―	3.23%	-0.22%	-12.64%
IP	76 Outperform	€5.02B	22.92	10.99%	0.72%	-2.00%	2.11%
IVG	65 Neutral	€6.49B	18.96	―	1.76%	-7.26%	14.20%
STLAM	63 Neutral	€35.25B	-11.18	-3.01%	7.23%	-17.07%	-118.99%
FCT	63 Neutral	€5.94B	48.26	14.30%	―	18.44%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PIA	58 Neutral	€658.86M	17.76	9.15%	4.42%	-10.26%	-45.52%