Pirelli & C. SpA (PIRC) AI Stock Analysis

• Market Cap: €5.86B
• Dividend Yield: 4.33%
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.62
• Revenue Growth: 1.64%
• EPS Growth: 14.73%
• Country: IT
• Employees: 30,641
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.15
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 2,143,648
• 30 Day Avg. Volume: 2,498,865
• PEG Ratio: -5.98
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 6.56
• 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: €6.75
• Price Target Upside: 15.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €6.50 ▲(10.92% Upside)

Pirelli & C. SpA's overall stock score is driven by its strong financial performance and attractive valuation. The company's profitability and balanced capital structure are significant strengths. However, technical indicators suggest a cautious short-term outlook, which tempers the overall score.

Positive Factors

Strong Cash Flow Management

Strong cash flow management ensures Pirelli can effectively fund operations and investments, supporting long-term growth and stability.

High Gross Profit Margins

High gross profit margins reflect efficient cost management and pricing power, enhancing profitability and competitive positioning.

Premium Market Position

A strong brand in the premium segment allows Pirelli to command higher prices and maintain customer loyalty, supporting revenue stability.

Negative Factors

Declining Revenue Growth

A declining revenue growth rate may indicate market challenges, potentially impacting future profitability and market share.

Moderate Leverage

Moderate leverage suggests reliance on debt, which could pose risks if market conditions worsen, affecting financial flexibility.

Negative Revenue Growth Rate

Negative revenue growth indicates potential market challenges, requiring strategic adjustments to reverse the trend and sustain growth.

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, DIABLO Supercorsa, DIABLO Rain, DIABLO Wet, SCORPION MX, SCORPION Pro F.I.M., SCORPION XC, DIABLO Supercorsa SP, DIABLO Rosso Corsa, DIABLO Rosso III, ANGEL GT II, NIGHT DRAGON, MT 66 ROUTE, SCORPION Trail II, MT 60 RS, SCORPION Rally STR, DIABLO ROSSO Scooter, and ANGEL Scooter brands; motorsport tires under the P ZERO TROFEO R, SOTTOZERO, P7 Corsa, K, KM, RK, rain, and Slick brands; bike tires under the P Zero, Cinturato, and Scorpion brand names; and truck and bus tires. The company also provides Run Flat and Seal Inside specialties that enable cars to continue driving after a puncture; Pirelli Noise Cancelling System for reducing noise by rolling; and Elect, a line of tires for electric vehicles. It operates approximately 17,000 points of sale. Pirelli & C. S.p.A. was founded in 1872 and is headquartered in Milan, Italy.

How the Company Makes Money

Pirelli generates revenue primarily through the sale of tires, which includes both original equipment tires supplied to automotive manufacturers and replacement tires sold to consumers. The company focuses on high-margin premium segments, allowing it to capture higher prices compared to standard tire products. Key revenue streams include sales from its extensive product range, which features advanced technologies and performance enhancements. Additionally, Pirelli benefits from strategic partnerships with automotive OEMs, enhancing its market position and driving sales through exclusive contracts. The company also invests in research and development to innovate its product offerings, further contributing to its revenue growth through enhanced performance and sustainability features.

Pirelli & C. SpA Financial Statement Overview

Summary

Pirelli & C. SpA exhibits solid financial health with strong profitability and cash flow metrics. While the balance sheet shows moderate leverage, the declining revenue growth rate is a concern. The company should focus on reversing the revenue decline to maintain its financial stability.

Income Statement

Pirelli & C. SpA shows strong gross profit margins consistently above 60%, indicating efficient cost management. However, the recent TTM revenue growth rate is negative, suggesting potential market challenges. Net profit margins have improved slightly, reflecting better profitability, but the overall revenue decline is a concern.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Return on equity is stable, reflecting consistent profitability. However, the equity ratio suggests a moderate reliance on debt, which could pose risks if market conditions worsen.

Cash Flow

Pirelli & C. SpA demonstrates strong cash flow management with positive free cash flow growth and a healthy free cash flow to net income ratio. Operating cash flow coverage is improving, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.78B	6.77B	6.65B	6.62B	5.33B	4.30B
Gross Profit	4.23B	4.22B	4.40B	4.41B	3.67B	2.86B
EBITDA	1.39B	1.41B	1.39B	1.27B	1.07B	714.80M
Net Income	496.17M	467.98M	479.08M	417.76M	302.80M	42.67M
Balance Sheet
Total Assets	13.12B	13.68B	13.53B	13.90B	13.88B	13.76B
Cash, Cash Equivalents and Short-Term Investments	999.45M	1.67B	1.48B	1.54B	2.00B	2.33B
Total Debt	3.75B	3.83B	3.96B	4.49B	5.28B	5.85B
Total Liabilities	7.27B	7.77B	7.91B	8.44B	8.84B	9.21B
Stockholders Equity	5.69B	5.76B	5.49B	5.32B	4.91B	4.45B
Cash Flow
Free Cash Flow	911.17M	888.89M	960.83M	796.24M	632.40M	424.95M
Operating Cash Flow	1.31B	1.29B	1.36B	1.13B	919.07M	618.35M
Investing Cash Flow	-394.37M	-421.26M	-392.86M	-326.62M	-256.39M	-251.68M
Financing Cash Flow	-717.53M	-610.70M	-979.58M	-1.40B	-1.08B	439.40M

Pirelli & C. SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.86 is below the 20-day moving average (MA) of 5.95, below the 50-day MA of 6.01, and above the 200-day MA of 5.78, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.02 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRE	79 Outperform	€4.70B	11.45	―	3.23%	-0.22%	-12.64%
DLG	75 Outperform	€5.49B	17.13	17.64%	2.24%	13.95%	17.07%
MONC	74 Outperform	€14.87B	24.29	18.89%	2.32%	0.87%	-5.61%
RACE	72 Outperform	€75.35B	35.53	43.40%	0.93%	9.53%	12.89%
PIRC	66 Neutral	€5.86B	11.80	8.81%	4.33%	1.64%	14.73%
STLAM	63 Neutral	€35.45B	-11.41	-3.01%	7.23%	-17.07%	-118.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%