Prysmian SpA (PRY) AI Stock Analysis

• Market Cap: €20.10B
• Dividend Yield: 1.16%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.11
• Revenue Growth: 24.33%
• EPS Growth: 36.45%
• Country: IT
• Employees: 33,740
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.95
• Shares Outstanding: 296,356,570
• 10 Day Avg. Volume: 1,288,701
• 30 Day Avg. Volume: 1,068,922
• 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: €76.89
• Price Target Upside: 9.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: €77.00 ▲(9.84% Upside)

Prysmian SpA's stock score is driven primarily by strong technical momentum and solid financial performance, despite challenges in cash flow and high valuation. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Financial Performance

Transmission revenues in 4Q24 rose 33% YoY and were 14% higher than consensus, with EBITDA also 10% higher than estimates.

Growth Drivers

Growth will be primarily driven by Transmission, and is based on existing backlog with therefore very high visibility.

Market Opportunity

The share price has negatively overreacted to an overall in-line release, offering an entry point ahead of the 26 March CMD.

Negative Factors

Financial Impact

The bottom line was negatively impacted by some one-off/non-cash items deriving from the integration of Encore Wire.

Market Sentiment

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.

Revenue Impact

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 Business Overview & Revenue Model

Company Description

Prysmian SpA is a global leader in the energy and telecom cable systems industry, headquartered in Milan, Italy. The company operates through three main sectors: Energy, Projects, and Telecom. Prysmian designs, manufactures, and supplies cables for a wide range of applications, including power distribution and transmission, telecommunications, and industrial uses. Its core products include underground and submarine power transmission cables, specialty cables for industrial applications, and optical fiber cables for telecommunications.

How the Company Makes Money

Prysmian SpA generates revenue primarily through the sale of its cable and system solutions across its three main business sectors. The Energy sector provides a significant portion of its revenue by supplying cables for power transmission and distribution, as well as for industrial and infrastructure applications. The Projects sector contributes by delivering high-value turnkey projects, such as submarine and underground cable systems for power utilities and renewable energy installations. The Telecom sector earns revenue through the production and sale of optical fiber and copper cables, supporting telecommunications network infrastructure. Key revenue streams include large-scale contracts with utilities, telecom operators, and industrial companies. Significant partnerships and long-term agreements with major energy and telecom firms also bolster Prysmian's earnings, as do investments in innovation and technology that enhance its product offerings and competitive position in the market.

Prysmian SpA Financial Statement Overview

Summary

Prysmian SpA exhibits strong revenue growth and efficient cash flow management, but declining profitability margins and a TTM EBIT loss are concerns. The balance sheet shows moderate leverage, yet increasing debt levels pose potential risks.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.86B	17.03B	15.35B	16.07B	12.74B	10.02B
Gross Profit	6.32B	6.29B	5.70B	5.45B	4.07B	3.62B
EBITDA	2.73B	1.66B	1.45B	1.17B	881.00M	787.00M
Net Income	753.00M	729.00M	529.00M	504.00M	308.00M	178.00M
Balance Sheet
Total Assets	18.67B	18.20B	13.32B	12.76B	12.02B	9.93B
Cash, Cash Equivalents and Short-Term Investments	590.00M	1.08B	1.85B	1.57B	1.96B	1.19B
Total Debt	5.26B	5.38B	3.10B	3.07B	3.73B	3.17B
Total Liabilities	13.06B	12.90B	9.35B	8.98B	8.93B	7.51B
Stockholders Equity	5.42B	5.09B	3.78B	3.58B	2.92B	2.26B
Cash Flow
Free Cash Flow	1.18B	1.14B	792.00M	584.00M	494.00M	443.00M
Operating Cash Flow	2.12B	1.93B	1.42B	1.04B	777.00M	705.00M
Investing Cash Flow	-5.75B	-4.85B	-491.00M	-498.00M	-582.00M	-250.00M
Financing Cash Flow	3.05B	2.20B	-424.00M	-961.00M	335.00M	-325.00M

Prysmian SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 70.1 is above the 20-day moving average (MA) of 65.05, above the 50-day MA of 60.82, and above the 200-day MA of 59.10, indicating a bullish trend. The MACD of 2.81 indicates Negative momentum. The RSI at 70.60 is Negative, neither overbought nor oversold. The STOCH value of 77.99 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
PRY	70 Outperform	€20.10B	26.74	15.19%	1.16%	24.33%	36.45%
Sector *	64 Neutral	$10.63B	16.03	5.49%	2.12%	2.74%	-23.62%
0RH2	―	€922.56M	18.12	16.98%	―	―	―
0EWD	―	€3.84B	17.56	11.06%	―	―	―
0QEP	―	€3.98B	16.99	43.57%	―	―	―
0MVJ	―	€37.07M	―	1.52%	―	―	―
COM	78 Outperform	€957.85M	16.04		2.39%	-20.36%	-23.26%