Esprinet Spa (PRT) AI Stock Analysis

• Market Cap: €211.20M
• Dividend Yield: 9.26%
• Average Volume (3M): 205.10K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.89
• Revenue Growth: 7.32%
• EPS Growth: N/A
• Country: IT
• Employees: 1,808
• Sector: Technology
• Sector Strength: 98
• Industry: Technology Distributors
• EPS (TTM): 0.01
• Shares Outstanding: 50,417,416
• 10 Day Avg. Volume: 206,823
• 30 Day Avg. Volume: 205,105
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €5.95
• Price Target Upside: 37.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: €4.50 ▲(4.17% Upside)

The overall stock score is driven by strong valuation metrics, including a reasonable P/E ratio and high dividend yield, which provide an attractive investment opportunity. Positive technical indicators further support the stock's potential. However, mixed financial performance, particularly operational challenges and cash flow weaknesses, slightly offset these strengths.

Positive Factors

Debt Management

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

Growth Opportunities

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

Market Expansion

The group aims to expand its market presence in the V-Valley division through new distribution agreements and selective M&A activity.

Negative Factors

Cost Impact

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

Guidance and Forecasts

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

Profitability Concerns

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 Spa (PRT) is a leading technology distributor in Southern Europe, specializing in the distribution of IT products, consumer electronics, and telecommunications equipment. The company operates primarily in Italy and Spain, providing a wide range of products including computers, peripherals, software, and networking solutions. Esprinet serves a diverse clientele that includes resellers, retailers, and system integrators, offering value-added services such as logistics, marketing support, and technical assistance.

How the Company Makes Money

Esprinet generates revenue through a multi-faceted model primarily focused on wholesale distribution. Key revenue streams include the sale of IT hardware, software licensing, and consumer electronics products to retailers and resellers. The company also earns income from value-added services such as logistics, inventory management, and technical support. Significant partnerships with major technology brands enhance its product offerings and attract a broad customer base, while its established distribution network in Southern Europe allows it to capitalize on regional market demands. Additionally, Esprinet benefits from economies of scale, reducing costs and increasing profitability through efficient supply chain management.

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: Positive
• Last Price: 4.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 4.32 is above the 20-day moving average (MA) of 4.24, above the 50-day MA of 4.02, and below the 200-day MA of 4.34, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 77.29 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	74 Outperform	€285.59M	8.07		2.78%	-3.76%	-9.21%
PRT	73 Outperform	€211.20M	11.40	4.95%	9.26%	7.32%	―
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%
IOT	56 Neutral	€320.47M	―	-8.20%	―	-9.38%	-345.16%