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Pirelli & C. SpA (IT:PIRC)
:PIRC
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Pirelli & C. SpA (PIRC) AI Stock Analysis

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IT:PIRC

Pirelli & C. SpA

(Frankfurt:PIRC)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
€7.00
▲(15.13% Upside)
Pirelli & C. SpA's strong valuation and technical indicators contribute positively to its overall score. The company's solid financial performance, despite concerns over declining revenue growth, supports a stable outlook. The absence of earnings call and corporate events data does not impact the score.

Pirelli & C. SpA (PIRC) vs. iShares MSCI Italy ETF (EWI)

Pirelli & C. SpA Business Overview & Revenue Model

Company DescriptionPirelli & 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 MoneyPirelli generates revenue primarily through the sale of tires, which account for the majority of its income. The company's revenue model is structured around several key segments, including the consumer tire segment (which encompasses passenger car and motorcycle tires) and the industrial tire segment (covering tires for trucks, buses, and specialty vehicles). Additionally, Pirelli benefits from its strong brand positioning in the premium tire market, allowing it to command higher prices. Significant partnerships with automotive manufacturers for original equipment tire supply and ongoing contracts in motorsport further contribute to its revenue streams. The company also invests in research and development to innovate its product offerings, enhancing performance and sustainability, which can lead to increased market share and profitability.

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
72
Positive
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
65
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.82B6.77B6.65B6.62B5.33B4.30B
Gross Profit4.22B4.22B4.40B4.41B3.67B2.86B
EBITDA1.46B1.41B1.41B1.29B1.08B714.80M
Net Income498.88M467.98M479.08M417.76M302.80M42.67M
Balance Sheet
Total Assets12.97B13.68B13.53B13.90B13.88B13.76B
Cash, Cash Equivalents and Short-Term Investments930.50M1.67B1.48B1.54B2.00B2.33B
Total Debt3.81B3.83B3.96B4.49B5.28B5.85B
Total Liabilities7.27B7.77B7.91B8.44B8.84B9.21B
Stockholders Equity5.54B5.76B5.49B5.32B4.91B4.45B
Cash Flow
Free Cash Flow1.02B888.89M960.83M796.24M632.40M424.95M
Operating Cash Flow1.43B1.29B1.36B1.13B919.07M618.35M
Investing Cash Flow-381.82M-421.26M-392.86M-326.62M-256.39M-251.68M
Financing Cash Flow-843.99M-610.70M-979.58M-1.40B-1.08B439.40M

Pirelli & C. SpA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.08
Price Trends
50DMA
5.91
Positive
100DMA
5.89
Positive
200DMA
5.63
Positive
Market Momentum
MACD
0.03
Negative
RSI
58.75
Neutral
STOCH
89.80
Negative
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 6.08 is above the 20-day moving average (MA) of 6.01, above the 50-day MA of 5.91, and above the 200-day MA of 5.63, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.75 is Neutral, neither overbought nor oversold. The STOCH value of 89.80 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
€4.69B14.6217.64%2.64%13.95%17.07%
77
Outperform
$99.35B47.1546.42%0.71%9.35%15.99%
77
Outperform
€13.60B22.5518.89%2.53%0.87%-5.61%
76
Outperform
€6.09B12.218.98%4.11%2.47%7.85%
74
Outperform
€4.74B12.3812.04%3.24%-2.54%-20.53%
65
Neutral
$34.94B4.46-3.01%7.21%-17.07%-118.99%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:PIRC
Pirelli & C. SpA
6.08
1.02
20.07%
IT:STLAM
Stellantis
9.43
-1.57
-14.28%
IT:RACE
Ferrari
421.10
7.33
1.77%
IT:DLG
De'Longhi S.p.A.
31.02
5.17
19.99%
IT:BRE
Brembo SPA
9.18
-0.21
-2.28%
IT:MONC
Moncler S.p.A.
51.42
-1.52
-2.87%
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.Date of analysis: Oct 02, 2025