Esprinet Spa (PRT) AI Stock Analysis

• Market Cap: €196.78M
• Dividend Yield: 8.55%
• Average Volume (3M): 282.82K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.84
• Revenue Growth: 7.32%
• EPS Growth: N/A
• Country: IT
• Employees: 1,808
• Sector: Technology
• Sector Strength: 87
• Industry: Technology Distributors
• EPS (TTM): 0.01
• Shares Outstanding: 50,417,416
• 10 Day Avg. Volume: 255,095
• 30 Day Avg. Volume: 282,818
• PEG Ratio: 0.89
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.26
• 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: €6.43
• Price Target Upside: 59.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: €4.00 ▼(-0.50%Downside)

The overall stock score reflects a balance of mixed financial performance and bearish technical indicators, offset by an attractive valuation. The stability in the balance sheet and reasonable pricing relative to earnings provide a buffer against operational challenges and bearish market momentum.

Positive Factors

Debt Management

Net debt fell significantly, supported by better NWC management and greater use of factoring.

Green Technology Growth

Zeliatech, the green tech division, is experiencing rapid growth, highlighting successful expansion into new market opportunities.

Market Presence

Sales in Spain showed significant growth, while Italy remained stable, indicating strong market presence in these regions.

Negative Factors

Cost Management

Higher SG&A costs have negatively impacted the EBITDA margin, driven by increased personnel expenses and advertising costs.

Guidance and Expectations

The company's cautious guidance for FY25 EBITDA reflects uncertainty due to potential persistent inflation and market volatility.

Profitability Challenges

Profitability deteriorated sharply, with adjusted EBITDA down 24% year over year, impacted by a 12% increase in operational costs.

Esprinet Spa Business Overview & Revenue Model

Company Description

Esprinet S.p.A., together with its subsidiaries, engages in the wholesale distribution of information technology (IT) and consumer electronics primarily in Italy, Spain, Portugal, and rest of Europe. The company distributes home, leisure, and office products, such as air conditioning, audio, DIY and gardening, electricity and lighting, gaming, mobility, navigation, networking, printing, sports and leisure, TV and home cinema, and video surveillance and access control products. It also offers bags, backpacks, and suitcases; drones; home appliances; mobile phones and landline phones; monitors; musical instruments and DJ mixers; notebooks and tablets; papers and consumables; and photo and video devices. In addition, the company provides toys; audio, cabling, furniture, office, stationary, storage, and rack and power products; workstations; PC components; peripherals; scanners; and video projection products and smart boards. Further, it offers auto-ID and POS, cloud, cyber security, software, unified communication and collaboration, and wiring products; 3D printers, pens, and accessories; measuring instruments; and servers and systems. The company serves IT resellers, including value-added and corporate resellers, system integrators, dealers, specialized resellers, and retailers and E-tailers. Esprinet S.p.A. is based in Vimercate, Italy.

How the Company Makes Money

Esprinet S.p.A. generates revenue primarily through the distribution and sale of IT and consumer electronics products. The company operates on a B2B model, serving as an intermediary between manufacturers and end-sellers like retailers and system integrators. Esprinet earns money by purchasing products from technology vendors and selling them at a markup to its clients. Additionally, the company may benefit from volume-based pricing arrangements with suppliers, allowing for competitive pricing strategies. Significant partnerships with major technology brands enhance Esprinet's product offerings and market reach, further supporting its revenue streams.

Esprinet Spa Financial Statement Overview

Summary

Esprinet Spa exhibits a mixed financial performance with moderate revenue growth and improved net profitability but faces operational challenges, as indicated by negative EBIT margins. The balance sheet displays stability with moderate leverage and healthy equity levels, though cash flow weaknesses are evident, particularly in free cash flow generation.

Income Statement

The company's revenue has shown moderate growth with a 3.93% increase from 2023 to 2024. However, profitability metrics have weakened, with a negative EBIT margin of -11.16% in 2024, indicating operational challenges. Despite this, the company managed to turn around its net profit margin from negative in 2023 to a positive 0.52% in 2024, highlighting some improvement in net profitability.

Balance Sheet

The balance sheet reflects stable equity with a debt-to-equity ratio of 0.67 in 2024, showing moderate leverage. The equity ratio remains healthy at 19.25%, indicating a strong equity position relative to total assets. Return on equity improved to 5.53% in 2024, showing efficient use of equity to generate profits.

Cash Flow

The cash flow situation shows some concerns with a significant decline in free cash flow from €154.55 million in 2023 to negative €3.20 million in 2024. The operating cash flow to net income ratio is low at 0.13, suggesting a disconnect between earnings and cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.14B	3.99B	4.68B	4.69B	4.49B
Gross Profit	226.94M	218.44M	242.97M	231.89M	193.67M
EBITDA	68.82M	62.07M	86.93M	83.05M	62.10M
Net Income	21.52M	-11.88M	47.35M	44.18M	31.41M
Balance Sheet
Total Assets	2.02B	1.84B	1.87B	1.92B	1.82B
Cash, Cash Equivalents and Short-Term Investments	216.35M	261.00M	172.19M	491.47M	558.93M
Total Debt	262.28M	249.00M	265.68M	273.81M	265.98M
Total Liabilities	1.63B	1.47B	1.47B	1.54B	1.43B
Stockholders Equity	389.25M	367.41M	409.22M	386.12M	386.87M
Cash Flow
Free Cash Flow	-3.20M	154.55M	-263.84M	15.81M	70.63M
Operating Cash Flow	2.77M	168.04M	-251.41M	21.65M	77.61M
Investing Cash Flow	-5.61M	-19.95M	-19.06M	-17.02M	-44.29M
Financing Cash Flow	-41.80M	-59.39M	-48.82M	-72.09M	61.83M

Esprinet Spa Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:PRT, the sentiment is Neutral. The current price of 4.02 is above the 20-day moving average (MA) of 3.78, below the 50-day MA of 4.24, and below the 200-day MA of 4.51, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 96.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:PRT.

Esprinet Spa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRT	63 Neutral	€196.78M	10.63	4.95%	8.55%	7.32%	―
Sector *	49 Neutral	C$2.96B	2.13	-80.92%	2.67%	12.55%	-24.47%
7GV		€311.16M	―	-8.20%	―	―	―
101		€96.69M	11.03	11.71%	―	―	―
AGP		€139.68M	8.26		―	―	―
DGV	83 Outperform	€313.59M	8.86		3.21%	-3.76%	-9.21%
PWS		€254.33M	19.13		4.29%	―	―