Prysmian SpA (PRY) AI Stock Analysis

• Market Cap: €24.60B
• Dividend Yield: 0.93%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.13
• Revenue Growth: 21.75%
• EPS Growth: 92.91%
• Country: IT
• Employees: 33,740
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.01
• Shares Outstanding: 296,403,800
• 10 Day Avg. Volume: 1,147,959
• 30 Day Avg. Volume: 1,076,005
• PEG Ratio: 0.71
• Price to Book (P/B): 3.41
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 15.23
• 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: €91.94
• Price Target Upside: 6.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: €93.00 ▲(7.79% Upside)

Prysmian SpA's overall stock score reflects solid financial performance with strong revenue growth and effective debt management. However, operational efficiency and cash flow generation challenges, combined with moderate valuation and neutral technical indicators, suggest a balanced outlook. Strategic improvements in these areas could enhance future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, which are crucial for long-term success.

Debt Management

Effective debt management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Shareholder Returns

Strong shareholder returns reflect efficient use of equity capital, fostering investor confidence and supporting stock performance.

Negative Factors

Operational Efficiency

Declining operational efficiency can impact profitability, requiring strategic adjustments to sustain competitive advantage.

Cash Flow Generation

Challenges in cash flow generation may limit financial flexibility, affecting the company's ability to fund new projects and expansions.

Gross Profit Margin

A declining gross profit margin could indicate rising costs or pricing pressures, potentially affecting long-term profitability.

Prysmian SpA Business Overview & Revenue Model

Company Description

Prysmian S.p.A., together with its subsidiaries, produces, distributes, and sells cables and systems, and related accessories for the energy and telecommunications industries worldwide. The company operates through three segments: Projects, Energy, and Telecom. The Projects segment designs, produces, and installs high and extra high voltage cables for electricity transmission from power plants, and within transmission and primary distribution grids; high voltage cabling systems for terrestrial and submarine applications; submarine cable solutions for power transmission and distribution; data transmission cables; and umbilical cables, hoses, and electrical, optical, and signalling components for oil well management, as well as offers services for terrestrial and submarine interconnections between various countries and between offshore wind farms and the mainland, which is used for generation and distribution of electricity. The Energy segment includes trade and installers; power distribution and overhead transmission lines; industrial and network components for various industries, which comprise oil and gas, downhole technology, elevators, automotive, nuclear, mining, marine, water, and infrastructure sectors, as well as for renewable energy field, military, railways, and cranes; and provides asset monitoring solutions. The Telecom segment manufactures cable systems and connectivity products, such as optical fiber, optical cables, connectivity components and accessories, optical ground wires, and copper cables that are used in telecommunication networks. Prysmian S.p.A. was founded in 1879 and is headquartered in Milan, Italy.

How the Company Makes Money

Prysmian SpA generates revenue primarily through the manufacturing and sale of cables and related systems. The company's key revenue streams include high voltage and low voltage power cables for energy distribution, which serve utilities and industrial customers, and telecommunications cables that support the global communication infrastructure. Additionally, Prysmian benefits from significant contracts with energy companies for renewable energy projects, such as offshore wind farms and solar installations. The company also engages in strategic partnerships and joint ventures, enhancing its market reach and capabilities. Factors contributing to its earnings include increasing global demand for energy efficiency, infrastructure upgrades, and the expansion of telecommunication networks, particularly in developing regions.

Prysmian SpA Financial Statement Overview

Summary

Prysmian SpA demonstrates strong revenue growth and profitability, with stable margins and improved leverage. However, the significant decline in free cash flow growth and high debt levels pose potential risks. The company maintains a solid return on equity, indicating effective equity utilization, but needs to address cash flow challenges to sustain long-term financial health.

Income Statement

Prysmian SpA shows a strong revenue growth trajectory with a 4.15% increase in TTM, following a robust 10.89% annual growth in 2024. The gross profit margin remains healthy at 33.51% TTM, although slightly down from 36.92% in 2024. Net profit margin is stable at 3.99% TTM, reflecting consistent profitability. However, the EBIT margin has decreased to 11.26% TTM from 7.02% in 2024, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.97 TTM from 1.06 in 2024, indicating better leverage management. Return on equity is strong at 14.90% TTM, showcasing effective use of equity. The equity ratio is stable, reflecting a balanced asset structure. However, the high total debt level remains a potential risk.

Cash Flow

Free cash flow growth has declined by 67.4% TTM, a significant drop from the previous year's growth. The operating cash flow to net income ratio is stable at 0.29 TTM, indicating consistent cash generation relative to net income. However, the free cash flow to net income ratio has decreased to 0.56 TTM, suggesting reduced cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.35B	17.03B	15.35B	16.07B	12.74B	10.02B
Gross Profit	6.54B	6.29B	5.70B	5.45B	4.07B	3.62B
EBITDA	3.23B	1.66B	1.45B	1.17B	881.00M	787.00M
Net Income	1.13B	729.00M	529.00M	504.00M	308.00M	178.00M
Balance Sheet
Total Assets	18.91B	18.20B	13.32B	12.76B	12.02B	9.93B
Cash, Cash Equivalents and Short-Term Investments	652.00M	1.08B	1.85B	1.57B	1.96B	1.19B
Total Debt	4.96B	5.38B	3.10B	3.07B	3.73B	3.17B
Total Liabilities	12.65B	12.90B	9.35B	8.98B	8.93B	7.51B
Stockholders Equity	6.07B	5.09B	3.78B	3.58B	2.92B	2.26B
Cash Flow
Free Cash Flow	962.00M	1.14B	792.00M	584.00M	494.00M	443.00M
Operating Cash Flow	1.79B	1.93B	1.42B	1.04B	777.00M	705.00M
Investing Cash Flow	-1.05B	-4.85B	-491.00M	-498.00M	-582.00M	-250.00M
Financing Cash Flow	-643.00M	2.20B	-424.00M	-961.00M	335.00M	-325.00M

Prysmian SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.28
• 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:PRY, the sentiment is Positive. The current price of 86.28 is below the 20-day moving average (MA) of 86.33, above the 50-day MA of 85.57, and above the 200-day MA of 70.68, indicating a neutral trend. The MACD of 0.77 indicates Positive momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 22.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:PRY.

Prysmian SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IP	76 Outperform	€4.96B	22.52	10.99%	0.72%	-2.00%	2.11%
COM	69 Neutral	€1.42B	23.63	―	1.80%	-20.36%	-23.31%
MAIRE	69 Neutral	€4.38B	17.03	42.37%	2.73%	30.91%	40.89%
ELN	68 Neutral	€1.14B	26.85	15.29%	1.58%	-18.41%	-15.30%
PRY	65 Neutral	€24.60B	21.84	21.00%	0.93%	21.75%	92.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TES	54 Neutral	€99.05M	-162.00	6.78%	―	-1.90%	91.60%