Prysmian SpA (PRY) AI Stock Analysis

• Market Cap: €27.15B
• Dividend Yield: 0.93%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.07
• Revenue Growth: 21.75%
• EPS Growth: 92.91%
• Country: IT
• Employees: 33,740
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.91
• Shares Outstanding: 296,403,800
• 10 Day Avg. Volume: 1,147,959
• 30 Day Avg. Volume: 1,076,005
• PEG Ratio: 0.30
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 21.56
• 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: €103.95
• Price Target Upside: 9.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.6
• Revenue Forecast (FY): €21.33B

• Rating: 77 Outperform
• Price Target: €116.00 ▲(22.54% Upside)
• Action: Upgraded Date: 03/01/26
• Date: Action: Upgraded 03/01/26

The score is driven primarily by strong financial performance (growth, improving profitability, solid cash generation) and supportive technical uptrend. This is partially offset by a not-cheap valuation (P/E ~23.7) with a low dividend yield, plus fundamental watch-outs around debt size and cash-conversion variability.

Positive Factors

Sustained revenue growth

Revenue roughly doubled from 2020 to 2025, reflecting durable market share gains and diversification across energy and telecoms end markets. That scale supports long-term investments, operating leverage potential, and resilience to cyclical demand swings over the next 2–6 months and beyond.

Improving profitability and returns

Margins and return on equity have trended higher, indicating better cost control, pricing power, or mix improvements. Sustained margin expansion and high ROE imply the business converts incremental revenue into profitable growth and can support reinvestment or shareholder returns over the medium term.

Solid cash generation and stronger capital base

Consistent operating cash flow and rising free cash flow strengthen balance-sheet flexibility, funding for capex and renewables projects, and capacity to service debt or return capital. This cash profile supports strategic investments and buffers cyclical pressures over the coming months.

Negative Factors

Sizable absolute debt load

Despite improved leverage metrics, a ~€5.2B absolute debt stock raises refinancing and interest-rate sensitivity risks. In a higher-rate or slower-demand scenario, servicing and rolling this debt could constrain capex, acquisitions, or distributions and reduce financial flexibility over time.

Gross margin volatility

A material gross margin swing signals exposure to input-cost shifts, product mix changes, or pricing dynamics. Persistent volatility at the gross level can erode the stability of operating profits and makes multi-period margin forecasting and planning more difficult for long-term capital allocation.

Below-1 free-cash-flow conversion

Free-cash-flow conversion below net income reflects working-capital swings and investment demands that can cause year-to-year cash variability. That limits the predictability of funds available for debt paydown or shareholder returns and may increase reliance on external financing when investment needs spike.

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

Strong multi-year growth and improved profitability (revenue up to €19.7B in 2025; operating and net margins rising to ~9.8% and ~6.5%). Balance sheet strength improved with higher equity and better debt-to-equity, and cash flow is solid with higher free cash flow (~€1.18B in 2025). Risks include gross margin volatility, sizable absolute debt (~€5.2B), and free-cash-flow conversion below net income (working-capital/investment sensitivity).

Income Statement

Revenue has expanded strongly over time (from €10.0B in 2020 to €19.7B in 2025), with 2025 showing a sharp step-up versus 2024. Profitability has also improved meaningfully: operating margin and net margin have generally trended higher, reaching ~9.8% and ~6.5% in 2025, respectively, alongside higher operating earnings and net income. The key watch-out is margin volatility—gross margin fell materially in 2025 versus 2024, suggesting mix, pricing, or cost pressure even as below-the-line profitability improved.

Balance Sheet

The balance sheet shows improving capital strength, with equity rising to €6.5B in 2025 from €2.3B in 2020 and leverage moderating versus peak levels (debt-to-equity improved to ~0.80 in 2025 from ~1.40 in 2020). Returns to shareholders are solid and improving, with return on equity near ~19.6% in 2025. Offsetting this, total debt remains sizable at ~€5.2B and increased versus 2023, which leaves the company more exposed if industry conditions soften or funding costs rise.

Cash Flow

Cash generation is healthy and scaling with the business: operating cash flow is ~€1.9B in both 2024 and 2025, and free cash flow rose to ~€1.18B in 2025 with strong growth versus 2024. Free cash flow covers a meaningful portion of earnings (about ~61% in 2025), supporting balance-sheet flexibility. The main weakness is that free cash flow does not fully convert net income (i.e., conversion is below 1.0), pointing to ongoing working-capital or investment demands that can cause year-to-year variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.65B	17.03B	15.35B	16.07B	12.74B
Gross Profit	4.65B	6.29B	5.70B	5.45B	4.07B
EBITDA	2.58B	1.66B	1.45B	1.17B	881.00M
Net Income	1.27B	729.00M	529.00M	504.00M	308.00M
Balance Sheet
Total Assets	20.19B	18.20B	13.32B	12.76B	12.02B
Cash, Cash Equivalents and Short-Term Investments	2.08B	1.08B	1.85B	1.57B	1.96B
Total Debt	5.21B	5.38B	3.10B	3.07B	3.73B
Total Liabilities	13.51B	12.90B	9.35B	8.98B	8.93B
Stockholders Equity	6.47B	5.09B	3.78B	3.58B	2.92B
Cash Flow
Free Cash Flow	1.18B	1.14B	792.00M	584.00M	494.00M
Operating Cash Flow	1.93B	1.93B	1.42B	1.04B	777.00M
Investing Cash Flow	-1.06B	-4.85B	-491.00M	-498.00M	-582.00M
Financing Cash Flow	173.00M	2.20B	-424.00M	-961.00M	335.00M

Prysmian SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 94.66
• 50DMA: Negative
• 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 Neutral. The current price of 94.66 is below the 20-day moving average (MA) of 99.29, below the 50-day MA of 98.24, and above the 200-day MA of 82.09, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 42.25 is Neutral, neither overbought nor oversold. The STOCH value of 46.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:PRY.

Prysmian SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRY	77 Outperform	€27.15B	20.00	22.15%	0.93%	21.75%	92.91%
COM	69 Neutral	€1.14B	6.91	―	1.80%	-20.36%	-23.31%
IP	69 Neutral	€3.37B	23.93	10.16%	0.72%	-2.00%	2.11%
ELN	68 Neutral	€934.87M	11.11	15.29%	1.58%	-18.41%	-15.30%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MAIRE	59 Neutral	€4.10B	16.35	42.37%	2.73%	30.91%	40.89%
TES	54 Neutral	€74.98M	45.71	4.08%	―	-1.90%	91.60%