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Pirelli & C. SpA
(PIRC)
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Rating:66Neutral
Price Target:
€7.00
▲(8.36% Upside)
Action:Reiterated
Date:08/11/26
The score is mainly driven by solid cash generation and improving leverage, offset by the major TTM red flag of negative operating profitability. Technicals are steady but not strongly bullish, while valuation is supportive with a reasonable P/E and a high dividend yield.
Positive Factors
Cash generation
Consistently positive operating and free cash flow provides durable internal funding for capex, R&D, dividends and debt reduction. Over a 2–6 month horizon this cashability supports resilience through cyclicality and enables management to prioritize strategic investments or balance-sheet repair.
Negative Factors
Operating profitability deterioration
A swing to negative operating margins in the TTM signals structural pressure on core profitability—whether from cost inflation, mix shifts, or pricing limits. If this persists it undermines sustainable earnings, weakens cash conversion and constrains strategic options over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently positive operating and free cash flow provides durable internal funding for capex, R&D, dividends and debt reduction. Over a 2–6 month horizon this cashability supports resilience through cyclicality and enables management to prioritize strategic investments or balance-sheet repair.
Read all positive factors
Pirelli & C. SpA (PIRC) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€7.11B
Dividend Yield4.99%
Average Volume (3M)2.50M
Price to Earnings (P/E)13.0
Beta (1Y)0.68
Revenue Growth-0.77%
EPS Growth0.46%
CountryIT
Employees30,704
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.50
Shares Outstanding1,084,882,000
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
€6.95Price Target Upside7.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.52
Revenue Forecast (FY)€6.85B
Pirelli & C. SpA Business Overview & Revenue Model
Company Description
Pirelli & C. S.p.A., an Italian enterprise founded in Milan in 1872, operates globally as a prominent manufacturer and supplier of vehicle tires. The company's diverse product range caters to cars, motorcycles, and bicycles, featuring established ...
How the Company Makes Money
Pirelli makes money primarily by manufacturing and selling branded tires through two main channels: (1) replacement tires (sold to consumers and fleets via dealers, distributors, and retail networks) and (2) original equipment (OE) tires (sold dir...
Pirelli & C. SpA Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.77B | 6.78B | 6.77B | 6.65B | 6.62B | 5.33B |
| Gross Profit | 3.85B | 2.22B | 4.22B | 4.40B | 4.41B | 3.67B |
| EBITDA | -153.22M | 1.49B | 1.41B | 1.39B | 1.27B | 1.07B |
| Net Income | 536.94M | 497.53M | 467.98M | 479.08M | 417.76M | 302.80M |
Balance Sheet | ||||||
| Total Assets | 13.66B | 13.35B | 13.68B | 13.53B | 13.90B | 13.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 1.61B | 1.67B | 1.48B | 1.54B | 2.00B |
| Total Debt | 3.13B | 2.96B | 3.83B | 3.96B | 4.49B | 5.28B |
| Total Liabilities | 6.98B | 6.90B | 7.77B | 7.91B | 8.44B | 8.84B |
| Stockholders Equity | 6.40B | 6.28B | 5.76B | 5.49B | 5.32B | 4.91B |
Cash Flow | ||||||
| Free Cash Flow | 651.93M | 927.94M | 888.89M | 960.83M | 796.24M | 632.40M |
| Operating Cash Flow | 1.15B | 1.31B | 1.29B | 1.36B | 1.13B | 919.07M |
| Investing Cash Flow | -382.58M | -360.29M | -421.26M | -392.86M | -326.62M | -256.39M |
| Financing Cash Flow | -651.19M | -888.10M | -610.70M | -979.58M | -1.40B | -1.08B |
Pirelli & C. SpA Technical Analysis
Neutral
6.46
Price Trends
6.31
Positive
6.01
Positive
5.91
Positive
Market Momentum
0.06
Positive
50.52
Neutral
60.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:PIRC, the sentiment is Neutral. The current price of 6.46 is below the 20-day moving average (MA) of 6.54, above the 50-day MA of 6.31, and above the 200-day MA of 5.91, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 60.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:PIRC.
Pirelli & C. SpA Peers Comparison
UnderperformOutperform
Sector (61)
IT:PIRC
Pirelli & C. SpA
6.43
0.91
16.39%
IT:BRE
Brembo SPA
10.28
1.52
17.34%
IT:LNDR
Landi Renzo S.p.A.
0.67
-0.31
-31.50%
IT:INDB
Indel B S.p.A.
19.85
1.46
7.91%
IT:CFL
Cofle S.p.A.
1.89
-1.66
-46.90%
IT:RFG
Racing Force SpA
5.18
0.55
11.90%
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.