Prysmian SpA (PRY) AI Stock Analysis

• Market Cap: €28.88B
• Dividend Yield: 0.93%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 25.5
• Beta (1Y): 1.10
• Revenue Growth: 21.75%
• EPS Growth: 92.91%
• Country: IT
• Employees: 33,740
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.09
• 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: €98.57
• Price Target Upside: -2.12% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: €108.00 ▲(7.25% 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

Market leadership & product breadth

Prysmian's global leadership and broad product set across power and telecom cables create durable competitive advantages. Scale, engineering capability and presence in energy, renewables and telecom enable long-term contract wins, diversification of revenue and pricing power.

Improving leverage and strong ROE

Reduced leverage and a robust ROE signal healthier capital structure and effective capital deployment. Lower indebtedness increases financial flexibility for bidding on large infrastructure projects and absorbing cyclical shocks, supporting durable investment capacity.

Sustained gross margins with revenue momentum

A ~33% gross margin combined with continuing revenue growth indicates persistent manufacturing and pricing advantages. Solid gross margins in a capital-intensive industry support long-term profitability even if operating costs fluctuate, aiding project economics and contract competitiveness.

Negative Factors

Declining free cash flow growth

An almost 20% drop in FCF growth is a durable concern for a capital-intensive cable maker. Weaker cash generation limits organic funding for capex and renewables projects, may increase reliance on external financing and constrains flexibility for returns to shareholders over months.

Operational efficiency / margin volatility

Reported changes in EBIT margin point to operational efficiency headwinds—cost pressures, project execution or mix shifts. Persistent margin volatility undermines predictability of profits on long-cycle contracts and can pressure competitiveness and reinvestment capacity over the medium term.

Modest net profit margin

A sub-4% net margin in a capital-intensive business limits retained earnings for growth and makes returns sensitive to cost or pricing shocks. Low net profitability reduces buffer for financing large infrastructure projects and constrains long-term free cash flow resilience.

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 exhibits strong revenue growth and profitability, supported by effective debt management and robust shareholder returns. However, challenges in operational efficiency and free cash flow generation need to be addressed to sustain long-term financial health.

Income Statement

Prysmian SpA shows a solid revenue growth trajectory with a 2.58% increase in the TTM period, following a strong 10.89% growth in the previous year. The gross profit margin remains healthy at 33.51% TTM, though slightly down from 36.92% in 2024. Net profit margin is stable at 3.99% TTM, indicating consistent profitability. However, the EBIT margin has decreased to 11.26% TTM from 7.02% in 2024, suggesting some operational efficiency challenges. Overall, the company demonstrates strong revenue growth and profitability, but there are areas for improvement in operational efficiency.

Balance Sheet

The balance sheet of Prysmian SpA reflects a stable financial position with a debt-to-equity ratio of 0.97 TTM, improved from 1.06 in 2024, indicating effective debt management. Return on equity is robust at 14.90% TTM, showing strong shareholder returns. The equity ratio stands at 32.08% TTM, suggesting a balanced capital structure. While the company has reduced its leverage, maintaining this trend will be crucial to mitigate financial risk.

Cash Flow

Prysmian SpA's cash flow performance shows mixed results. The free cash flow growth rate has declined by 18.41% TTM, indicating potential challenges in cash generation. However, the operating cash flow to net income ratio remains stable at 0.29 TTM, reflecting consistent cash conversion. The free cash flow to net income ratio is 0.56 TTM, suggesting adequate cash flow relative to earnings. The company needs to focus on improving free cash flow generation to enhance financial flexibility.

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: 100.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 100.7 is above the 20-day moving average (MA) of 94.55, above the 50-day MA of 88.88, and above the 200-day MA of 74.53, indicating a bullish trend. The MACD of 3.71 indicates Negative momentum. The RSI at 73.92 is Negative, neither overbought nor oversold. The STOCH value of 88.53 is Negative, 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	€5.25B	23.95	10.99%	0.72%	-2.00%	2.11%
COM	69 Neutral	€1.41B	23.63	―	1.80%	-20.36%	-23.31%
MAIRE	69 Neutral	€5.02B	19.70	42.37%	2.73%	30.91%	40.89%
ELN	68 Neutral	€1.11B	26.28	15.29%	1.58%	-18.41%	-15.30%
PRY	65 Neutral	€28.88B	25.49	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	€100.37M	-164.00	6.78%	―	-1.90%	91.60%