Poste Italiane SPA (PST) AI Stock Analysis

• Market Cap: €25.64B
• Dividend Yield: 5.48%
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.67
• Revenue Growth: 1.91%
• EPS Growth: 18.59%
• Country: IT
• Employees: 115,147
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): 0.40
• Shares Outstanding: 1,306,110,000
• 10 Day Avg. Volume: 1,849,478
• 30 Day Avg. Volume: 1,773,956
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €19.23
• Price Target Upside: -2.44% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 70 Neutral
• Price Target: €20.00 ▲(1.47% Upside)

Poste Italiane SPA's stock is supported by a strong valuation with low P/E and high dividend yield, indicating good income potential. Technical analysis shows a positive trend with stable momentum. However, financial performance is mixed, with strong profitability but revenue and cash flow challenges, alongside high leverage risks.

Positive Factors

Cash Generation

Improved cash generation is driven by the insurance division remitting over 100% of its profits to the holding company, enhancing the financial position.

Ecommerce and Insurance Growth

Poste Italiane is well positioned to benefit from long-term growth in the Italian ecommerce and insurance sectors.

Negative Factors

Lack of Expansion Catalysts

There is no strong argument for further multiple expansion due to the absence of new catalysts.

Valuation Concerns

The current valuation reflects strong delivery, but with limited visible catalysts for further near-term upside.

Poste Italiane SPA Business Overview & Revenue Model

Company Description

Poste Italiane S.p.A. provides postal, logistics, and financial and insurance products and services in Italy. It operates in four segments: Mail, Parcels and Distribution; Payments and Mobile; Financial Services; and Insurance Services. The Mail, Parcels and Distribution segment offers mail and parcel services, as well as engages in the activities of the distribution network. As of December 31, 2021, it operated a network of 12,761 post offices in Italy. The Payments and Mobile segment provides payment, card payment, and mobile telecommunications services, as well as payment management, e-money services, and mobile and fixed-line telephone services; and digital services for the public sector. The Financial Services segment is involved in the collection of various forms of savings deposits; provision of payment and foreign currency exchange services, as well as investment services; and promotion and arrangement of loans issued by banks and other authorized financial institutions. The Insurance Services segment offers life and casualty insurance products. Poste Italiane S.p.A. was founded in 1862 and is headquartered in Rome, Italy.

How the Company Makes Money

Poste Italiane generates revenue through multiple streams. The primary source is its postal services, which include traditional mail delivery and logistics solutions. It also earns significant income from its financial services, particularly through BancoPosta, which offers banking products such as savings accounts, payment solutions, and lending services. Additionally, the company earns revenue from its insurance segment, providing life and non-life insurance products. Strategic partnerships with businesses and government entities further enhance its earnings potential. The company benefits from its extensive network of post offices across Italy, which serves as both a distribution channel and a point of service for its financial and insurance products.

Poste Italiane SPA Financial Statement Overview

Summary

Poste Italiane SPA demonstrates strong profitability and operational efficiency, with consistent margins. However, fluctuating revenue growth and cash flow volatility present challenges. High leverage is concerning, though the company uses its equity effectively.

Income Statement

Poste Italiane SPA exhibits strong profitability with a consistent gross profit margin and improving net profit margin over recent years. However, the revenue growth has been fluctuating, showing a decline in the latest year, which affects the overall growth trajectory. The EBIT and EBITDA margins remain stable, indicating operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, suggesting significant leverage, which may pose a risk if not managed properly. However, the return on equity is healthy, indicating effective use of equity in generating profits. The equity ratio is relatively low, pointing to a reliance on debt financing.

Cash Flow

Poste Italiane SPA's free cash flow has experienced volatility, with negative figures in some years, indicating potential challenges in cash generation. The operating cash flow to net income ratio is unavailable for the latest period, limiting comprehensive cash flow analysis.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.48B	20.14B	31.81B	31.64B	29.86B
Gross Profit	4.14B	5.66B	8.90B	8.31B	7.88B
EBITDA	3.65B	3.65B	3.58B	3.14B	2.46B
Net Income	1.99B	1.92B	1.58B	1.58B	1.21B
Balance Sheet
Total Assets	277.10B	270.83B	261.63B	284.73B	272.36B
Cash, Cash Equivalents and Short-Term Investments	39.09B	40.31B	44.78B	37.80B	39.20B
Total Debt	94.08B	11.51B	13.41B	16.75B	18.12B
Total Liabilities	265.39B	260.39B	252.69B	272.62B	260.85B
Stockholders Equity	11.58B	10.32B	8.89B	12.10B	11.50B
Cash Flow
Free Cash Flow	2.40B	568.00M	-630.00M	3.43B	1.24B
Operating Cash Flow	2.90B	1.41B	180.00M	4.18B	1.92B
Investing Cash Flow	-986.00M	-994.00M	-1.61B	-422.00M	-601.00M
Financing Cash Flow	-1.45B	-1.19B	-1.55B	-321.00M	1.05B

Poste Italiane SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.71
• 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:PST, the sentiment is Positive. The current price of 19.71 is above the 20-day moving average (MA) of 18.68, above the 50-day MA of 18.31, and above the 200-day MA of 15.52, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 75.75 is Negative, neither overbought nor oversold. The STOCH value of 94.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:PST.

Poste Italiane SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PST	70 Neutral	€25.64B	11.95	19.31%	5.48%	1.91%	18.59%
Sector *	65 Neutral	CHF6.87B	11.89	16.30%	2.60%	1.37%	16.67%
0N54	―	€6.68B	8.08	16.17%	―	―	―
0MHD	―	€4.15B	10.74	14.47%	―	―	―
0N4J	―	€10.44B	47.31	2.21%	―	―	―
0NRE	―	€79.04B	12.54	20.53%	―	―	―
0MUN	―	€3.24B	10.58	9.99%	―	―	―