Pirelli & C. SpA (IT:PIRC)
:PIRC
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Pirelli & C. SpA
(PIRC)
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Rating:64Neutral
Price Target:
€6.50
▲(5.69% Upside)
Action:ReiteratedDate:04/27/26
The score is supported primarily by solid financial quality (strong free cash flow, resilient margins, and improved leverage) and reasonable valuation (P/E ~11.7 with ~4.23% yield). These positives are tempered by weak technical positioning, with the stock trading below key moving averages and muted momentum indicators.
Positive Factors
Strong free cash flow
Sustained free cash flow near €0.9B and coverage of ~71% of net income provides durable financial flexibility. This supports debt reduction, shareholder returns and targeted R&D/capex in premium products, helping the company withstand cyclical auto demand over months.
Negative Factors
Revenue decline
An ~11.5% top-line drop in 2025 signals weakened volume or mix erosion. Prolonged revenue contraction can strain fixed-cost absorption and long-term margin sustainability, reducing headroom for reinvestment, capex or dividend maintenance if the trend persists several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained free cash flow near €0.9B and coverage of ~71% of net income provides durable financial flexibility. This supports debt reduction, shareholder returns and targeted R&D/capex in premium products, helping the company withstand cyclical auto demand over months.
Read all positive factors
Pirelli & C. SpA (PIRC) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€5.85B
Dividend Yield4.33%
Average Volume (3M)2.50M
Price to Earnings (P/E)11.7
Beta (1Y)0.66
Revenue Growth0.04%
EPS Growth5.96%
CountryIT
Employees30,641
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.13
Shares Outstanding1,000,000,000
10 Day Avg. Volume2,143,648
30 Day Avg. Volume2,498,865
Financial Highlights & Ratios
PEG Ratio1.84
Price to Book (P/B)0.99
Price to Sales (P/S)0.92
P/FCF Ratio6.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€7.20Price Target Upside17.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.51
Revenue Forecast (FY)€6.79B
Pirelli & C. SpA Business Overview & Revenue Model
Company Description
Pirelli & C. S.p.A. manufactures and supplies tires for cars, motorcycles, and bicycles worldwide. It offers car tires under the P ZERO, Cinturato, Scorpion, Sottozero, Ice Zero, and Carrier brand names; motorcycle tires under the DIABLO Superbike...
How the Company Makes Money
Pirelli makes money primarily by selling tires, generating revenue through two main channels: (1) Original Equipment (OE), where it supplies tires directly to automotive and motorcycle manufacturers for fitment on new vehicles, and (2) Replacement...
Pirelli & C. SpA Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
64
Positive
Cash Flow
71
Positive
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.78B | 6.77B | 6.65B | 6.62B | 5.33B |
| Gross Profit | 2.22B | 4.22B | 4.40B | 4.41B | 3.67B |
| EBITDA | 1.49B | 1.41B | 1.39B | 1.27B | 1.07B |
| Net Income | 497.53M | 467.98M | 479.08M | 417.76M | 302.80M |
Balance Sheet | |||||
| Total Assets | 13.35B | 13.68B | 13.53B | 13.90B | 13.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.61B | 1.67B | 1.48B | 1.54B | 2.00B |
| Total Debt | 2.96B | 3.83B | 3.96B | 4.49B | 5.28B |
| Total Liabilities | 6.90B | 7.77B | 7.91B | 8.44B | 8.84B |
| Stockholders Equity | 6.28B | 5.76B | 5.49B | 5.32B | 4.91B |
Cash Flow | |||||
| Free Cash Flow | 927.94M | 888.89M | 960.83M | 796.24M | 632.40M |
| Operating Cash Flow | 1.31B | 1.29B | 1.36B | 1.13B | 919.07M |
| Investing Cash Flow | -360.29M | -421.26M | -392.86M | -326.62M | -256.39M |
| Financing Cash Flow | -888.10M | -610.70M | -979.58M | -1.40B | -1.08B |
Pirelli & C. SpA Technical Analysis
Positive
6.15
Price Trends
6.05
Positive
6.08
Positive
6.01
Positive
Market Momentum
0.04
Negative
58.50
Neutral
41.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:PIRC, the sentiment is Positive. The current price of 6.15 is above the 20-day moving average (MA) of 5.93, above the 50-day MA of 6.05, and above the 200-day MA of 6.01, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 41.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:PIRC.
Pirelli & C. SpA Peers Comparison
UnderperformOutperform
Sector (61)
IT:PIRC
Pirelli & C. SpA
5.85
0.65
12.50%
IT:BRE
Brembo SPA
8.00
0.07
0.88%
IT:LNDR
Landi Renzo S.p.A.
0.79
-0.31
-28.18%
IT:INDB
Indel B S.p.A.
19.25
0.74
3.98%
IT:CFL
Cofle S.p.A.
2.00
-0.63
-24.14%
IT:RFG
Racing Force SpA
4.89
0.87
21.64%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.