Pirelli & C. SpA (PIRC) AI Stock Analysis

• Market Cap: €5.93B
• Dividend Yield: 4.22%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.72
• Revenue Growth: 2.47%
• EPS Growth: 7.85%
• Country: IT
• Employees: 30,641
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Parts
• EPS (TTM): 0.13
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 1,084,230
• 30 Day Avg. Volume: 1,331,301
• 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: €6.85
• Price Target Upside: 15.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: €6.50 ▲(9.61% Upside)

Pirelli & C. SpA's overall stock score reflects its solid financial performance and attractive valuation. The company's strong cash flow and profitability metrics are significant strengths. However, the declining revenue growth rate and neutral technical indicators present challenges. The absence of recent earnings call data and corporate events limits additional insights.

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 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 shows strong financial health with consistent growth in revenue and profitability, robust gross profit margin, and solid operational efficiency. The balance sheet indicates manageable leverage, although high debt levels are a potential risk. Strong cash flow generation supports financial robustness.

Income Statement

Pirelli & C. SpA demonstrates a strong income statement with consistent revenue growth, evidenced by a TTM revenue increase from the prior year. Gross Profit Margin is robust at approximately 62.3% for TTM, signaling effective cost management. EBIT and EBITDA margins are also solid, indicating operational efficiency. The Net Profit Margin stands at around 7.2% for TTM, showing profitability. Continued revenue and profitability improvements contribute to a high score.

Balance Sheet

The company maintains a healthy balance sheet with a Debt-to-Equity Ratio of approximately 0.65 in the TTM, reflecting manageable leverage. The Equity Ratio stands at about 43.7%, indicating a strong equity position. Return on Equity (ROE) is at 8.4%, showing decent shareholder returns. Although overall stability is good, high debt levels relative to equity remain a potential risk.

Cash Flow

Pirelli exhibits strong cash flow metrics, with a positive Free Cash Flow growth of 1.8% in TTM. The Operating Cash Flow to Net Income Ratio is robust at approximately 2.67, indicating efficient cash generation relative to net income. Free Cash Flow to Net Income Ratio is 1.83, demonstrating strong cash flow health. Consistent cash generation supports the positive score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.82B	6.77B	6.65B	6.62B	5.33B	4.30B
Gross Profit	4.22B	4.22B	4.40B	4.41B	3.67B	2.86B
EBITDA	1.46B	1.41B	1.41B	1.29B	1.08B	714.80M
Net Income	498.88M	467.98M	479.08M	417.76M	302.80M	42.67M
Balance Sheet
Total Assets	12.97B	13.68B	13.53B	13.90B	13.88B	13.76B
Cash, Cash Equivalents and Short-Term Investments	930.50M	1.67B	1.48B	1.54B	2.00B	2.33B
Total Debt	3.81B	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	5.54B	5.76B	5.49B	5.32B	4.91B	4.45B
Cash Flow
Free Cash Flow	1.02B	888.89M	960.83M	796.24M	632.40M	424.95M
Operating Cash Flow	1.43B	1.29B	1.36B	1.13B	919.07M	618.35M
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	-1.08B	439.40M

Pirelli & C. SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 5.93 is above the 20-day moving average (MA) of 5.84, above the 50-day MA of 5.83, and above the 200-day MA of 5.49, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 64.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PIRC	68 Neutral	€5.93B	11.78	8.98%	4.22%	2.47%	7.85%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
STLA	―	$37.39B	4.83	-3.01%	7.86%	―	―
RACE	―	$110.92B	48.55	46.42%	0.73%	―	―
0E5M	―	€4.58B	14.37	16.76%	―	―	―
0RPV	―	€4.82B	12.33	12.04%	3.20%	―	―
0QII	―	€12.96B	21.28	18.89%	―	―	―