Esprinet Spa (PRT) AI Stock Analysis

• Market Cap: €303.11M
• Dividend Yield: 6.66%
• Average Volume (3M): 377.06K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.88
• Revenue Growth: 5.75%
• EPS Growth: 8.26%
• Country: IT
• Employees: 1,808
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.06
• Shares Outstanding: 50,417,416
• 10 Day Avg. Volume: 193,273
• 30 Day Avg. Volume: 377,057
• PEG Ratio: -0.03
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -65.97
• 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: €6.67
• Price Target Upside: 7.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €6.50 ▲(4.84% Upside)

Esprinet Spa's stock is supported by strong technical indicators and a solid valuation with a high dividend yield. However, financial performance is mixed, with significant leverage and low profitability posing risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, supporting long-term business expansion and resilience.

Partnerships with Major Brands

Partnerships enhance product offerings and can lead to exclusive distribution agreements, strengthening competitive position and market reach.

Value-Added Services

Offering value-added services diversifies revenue streams and enhances customer loyalty, contributing to sustainable competitive advantages.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Low Profit Margins

Low profit margins indicate limited profitability, which can constrain reinvestment in growth initiatives and affect long-term financial health.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests cash flow challenges, potentially impacting the company's ability to fund operations and growth sustainably.

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 generates revenue primarily through the wholesale distribution of technology products to various resellers and retailers. The company's revenue model is based on the markup applied to the products it purchases from manufacturers, which are then sold to its customers. Key revenue streams include sales of IT hardware, software licenses, and consumer electronics. Additionally, Esprinet benefits from significant partnerships with major technology brands, which enhance its product offerings and can lead to exclusive distribution agreements. The company also capitalizes on value-added services such as logistics, technical support, and training, further contributing to its earnings.

Esprinet Spa Financial Statement Overview

Summary

Esprinet Spa shows strong revenue growth but faces challenges with profitability and cash flow. High leverage and low margins pose financial risks, though there is some resilience in maintaining positive free cash flow relative to net income.

Income Statement

Esprinet Spa's income statement shows moderate performance with a slight increase in gross profit margin over the years, reaching 5.52% in TTM. However, the net profit margin remains low at 0.51%, indicating limited profitability. Revenue growth is positive at 70.9% for TTM, but EBIT and EBITDA margins are weak, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.38 in TTM, indicating significant leverage. Return on equity is modest at 5.68%, suggesting limited returns for shareholders. The equity ratio is not calculated, but the overall leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis shows a concerning trend with negative free cash flow growth of -189.15% in TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly positive at 1.04, suggesting some ability to cover net income with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.25B	4.14B	3.99B	4.68B	4.69B	4.49B
Gross Profit	235.27M	226.94M	218.44M	242.97M	231.89M	193.67M
EBITDA	62.84M	68.82M	35.82M	86.93M	83.05M	62.10M
Net Income	21.09M	21.52M	-11.88M	47.35M	44.18M	31.41M
Balance Sheet
Total Assets	1.74B	2.02B	1.84B	1.87B	1.92B	1.82B
Cash, Cash Equivalents and Short-Term Investments	141.27M	216.35M	261.00M	172.19M	491.47M	558.93M
Total Debt	437.46M	262.28M	249.00M	265.68M	273.81M	265.98M
Total Liabilities	1.36B	1.63B	1.47B	1.47B	1.54B	1.43B
Stockholders Equity	376.16M	389.25M	367.41M	409.22M	386.12M	386.87M
Cash Flow
Free Cash Flow	82.86M	-3.20M	154.55M	-263.84M	15.81M	70.63M
Operating Cash Flow	85.82M	2.77M	168.04M	-251.41M	21.65M	77.61M
Investing Cash Flow	-2.65M	-5.61M	-19.95M	-19.06M	-17.02M	-44.29M
Financing Cash Flow	-43.87M	-41.80M	-59.39M	-48.82M	-72.09M	61.83M

Esprinet Spa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.20
• 50DMA: Positive
• 100DMA: Positive
• 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:PRT, the sentiment is Positive. The current price of 6.2 is above the 20-day moving average (MA) of 6.15, above the 50-day MA of 6.05, and above the 200-day MA of 5.10, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 74.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:PRT.

Esprinet Spa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGV	71 Outperform	€291.19M	15.45	―	2.82%	-24.28%	-57.55%
PRT	67 Neutral	€303.11M	14.60	5.62%	6.66%	5.75%	8.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IOT	58 Neutral	€417.54M	-45.77	-3.24%	―	1.84%	-15.49%