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Prysmian S.p.A. (IT:PRY)
:PRY

Prysmian SpA (PRY) AI Stock Analysis

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Prysmian SpA

(LSE:PRY)

Rating:69Neutral
Price Target:
€63.00
▲(9.99%Upside)
Prysmian SpA's overall stock score is primarily driven by solid financial performance, with strong revenue growth and cash flow management. However, declining profitability margins and a negative EBIT margin pose risks. The technical analysis suggests a neutral to slightly bullish outlook, supported by positive momentum indicators. Valuation metrics indicate the stock is fairly valued but not particularly attractive from a dividend perspective.
Positive Factors
Analyst rating
Prysmian is rated Outperform with a target price of €75.
Cash generation and growth
The company offering an attractive growth profile, strong cash generation, with very high visibility on its main growth driver (Transmission), and achievable targets with some upside potential in the other segments.
Transmission performance
Transmission revenues in 4Q24 rose 33% YoY and were 14% higher than consensus, with EBITDA also 10% higher than estimates.
Negative Factors
Electrification outlook
The announcement of a pause in the US listing process and an unexciting outlook for Power Grid and Electrification have not been appreciated by the market.
Impact of non-cash items
The bottom line was negatively impacted by some one-off/non-cash items deriving from the integration of Encore Wire.
Revenue growth uncertainty
On Electrification, the slowdown in some cyclical markets, plus the uncertainty around the tariffs, could temporarily have a negative impact on revenue growth.

Prysmian SpA (PRY) vs. iShares MSCI Italy ETF (EWI)

Prysmian SpA Business Overview & Revenue Model

Company DescriptionPrysmian 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 MoneyPrysmian SpA generates revenue through the sale of its cable and system solutions across its Energy and Telecom sectors. The Energy segment, which includes power distribution and transmission cables, serves utilities, industrial customers, and infrastructure projects, forming a significant portion of its revenue. Within the Telecom sector, Prysmian earns money by providing optical fiber cables and connectivity products to telecommunications operators and data centers, which are essential for broadband network deployment. The company also benefits from strategic partnerships and long-term contracts with governments and private entities, contributing to steady revenue streams. Key factors contributing to its earnings include its global presence, extensive product portfolio, and focus on innovation and technology in cable solutions.

Prysmian SpA Financial Statement Overview

Summary
Prysmian SpA shows robust revenue growth and strong cash flow management, but faces challenges with declining profitability margins and a TTM EBIT loss. The balance sheet indicates moderate leverage, but increasing debt levels require attention.
Income Statement
72
Positive
Prysmian SpA has shown a consistent increase in total revenue over the years, with a TTM (Trailing-Twelve-Months) revenue of €18.1 billion, marking a growth of 6.4% from the previous year. However, TTM gross profit margin has decreased to 30.3% from the previous year's 36.9%, and the TTM EBIT margin is negative due to an EBIT loss. The net profit margin is 3.8% for TTM, slightly below the previous year's 4.3%. Despite revenue growth, the decline in margins and EBIT loss are concerning.
Balance Sheet
65
Positive
The company's debt-to-equity ratio stands at 1.1, indicating a moderate level of leverage. The return on equity is 14% for TTM, which is healthy but slightly down from previous years. The equity ratio is 26.9%, suggesting that the company relies more on debt financing. While the balance sheet shows stability, the increasing debt level and slight decline in ROE could pose risks.
Cash Flow
78
Positive
Prysmian SpA has demonstrated strong operating cash flow growth, with TTM operating cash flow at €2.04 billion. The free cash flow has grown by 4.1% from the previous year. The operating cash flow to net income ratio is robust at 2.94, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 1.71 further highlights efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.11B17.03B15.35B16.07B12.74B10.02B
Gross Profit5.49B6.29B5.70B5.45B4.07B3.62B
EBITDA2.81B1.66B1.45B1.17B881.00M787.00M
Net Income694.00M729.00M529.00M504.00M308.00M178.00M
Balance Sheet
Total Assets18.49B18.20B13.32B12.76B12.02B9.93B
Cash, Cash Equivalents and Short-Term Investments580.00M1.08B1.85B1.57B1.96B1.19B
Total Debt5.48B5.38B3.10B3.07B3.73B3.17B
Total Liabilities13.32B12.90B9.35B8.98B8.93B7.51B
Stockholders Equity4.97B5.09B3.78B3.58B2.92B2.26B
Cash Flow
Free Cash Flow1.19B1.14B792.00M584.00M494.00M443.00M
Operating Cash Flow2.04B1.93B1.42B1.04B777.00M705.00M
Investing Cash Flow-4.98B-4.85B-491.00M-498.00M-582.00M-250.00M
Financing Cash Flow2.32B2.20B-424.00M-961.00M335.00M-325.00M

Prysmian SpA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price57.28
Price Trends
50DMA
53.58
Positive
100DMA
55.00
Positive
200DMA
59.08
Negative
Market Momentum
MACD
0.58
Positive
RSI
54.64
Neutral
STOCH
47.16
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 57.28 is above the 20-day moving average (MA) of 57.24, above the 50-day MA of 53.58, and below the 200-day MA of 59.08, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 47.16 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITPRY
69
Neutral
€16.42B23.4215.32%1.20%20.34%25.32%
58
Neutral
$1.34B4.06-2.93%11.64%3.38%-51.94%
€870.17M16.8716.98%1.76%
€3.63B16.9811.06%0.95%
€3.61B16.5636.69%3.27%
€32.19M1.52%
ITCOM
72
Outperform
€863.21M12.74
2.32%-23.00%-28.46%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:PRY
Prysmian SpA
57.84
0.68
1.18%
GB:0RH2
El.En. S.p.A.
10.88
1.67
18.13%
GB:0EWD
Interpump Group SPA
34.56
-6.43
-15.69%
GB:0QEP
MaireTecnimont SpA
11.05
4.02
57.18%
GB:0MVJ
Tesmec S.p.A.
0.12
0.00
0.00%
IT:COM
Comer Industries SpA
30.80
-1.88
-5.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025