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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

(PIRC)

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Neutral 66 (OpenAI - 5.2)
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)

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
Financials are supported by consistently positive free cash flow and improving leverage (debt-to-equity down to ~0.47–0.49x). However, the latest TTM shows a key risk: operating profitability flipped negative (EBIT/EBITDA margins negative) despite higher revenue and positive net income, increasing uncertainty around earnings quality and near-term margin sustainability.
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
68
Positive
BreakdownTTMMar 2026Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.77B6.78B6.77B6.65B6.62B5.33B
Gross Profit3.85B2.22B4.22B4.40B4.41B3.67B
EBITDA-153.22M1.49B1.41B1.39B1.27B1.07B
Net Income536.94M497.53M467.98M479.08M417.76M302.80M
Balance Sheet
Total Assets13.66B13.35B13.68B13.53B13.90B13.88B
Cash, Cash Equivalents and Short-Term Investments1.07B1.61B1.67B1.48B1.54B2.00B
Total Debt3.13B2.96B3.83B3.96B4.49B5.28B
Total Liabilities6.98B6.90B7.77B7.91B8.44B8.84B
Stockholders Equity6.40B6.28B5.76B5.49B5.32B4.91B
Cash Flow
Free Cash Flow651.93M927.94M888.89M960.83M796.24M632.40M
Operating Cash Flow1.15B1.31B1.29B1.36B1.13B919.07M
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

Technical Analysis Sentiment
Neutral
Last Price6.46
Price Trends
50DMA
6.31
Positive
100DMA
6.01
Positive
200DMA
5.91
Positive
Market Momentum
MACD
0.06
Positive
RSI
50.52
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
€5.29B14.189.42%3.01%
68
Neutral
€113.07M5.1014.66%4.15%2.67%99.77%
66
Neutral
€7.11B12.978.67%5.00%-0.77%0.46%
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
6.43
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.Date of analysis: Aug 11, 2026