Poste Italiane SPA (PST) AI Stock Analysis

• Market Cap: €23.29B
• Dividend Yield: 8.38%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.68
• Revenue Growth: -1.29%
• EPS Growth: 11.16%
• Country: IT
• Employees: 115,147
• Sector: Utilities
• Sector Strength: 77
• Industry: Conglomerates
• EPS (TTM): 0.46
• Shares Outstanding: 1,306,110,000
• 10 Day Avg. Volume: 1,381,787
• 30 Day Avg. Volume: 1,997,267
• PEG Ratio: 2.12
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.93
• 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: €18.99
• Price Target Upside: 6.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Neutral
• Price Target: €20.00 ▲(11.73%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

E-commerce and Insurance Growth

Poste remains structurally well positioned to benefit from long-term tailwinds in Italian ecommerce and insurance penetration, which underpin growth in Parcel, Payments, and Insurance.

Financial Performance

Insurance is now remitting more than 100% of profits to the HoldCo, driving improved cash generation and contributing to an improving net financial position.

Negative Factors

Market Positioning

Most of the near-term visible upside is priced in, and in the absence of other catalysts, there is no strong argument for further multiple expansion.

Valuation

Valuation reflects strong delivery but with limited further near-term catalysts.

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 makes money through a diversified revenue model that includes several key streams. The company generates income from its traditional postal and logistics services by offering mail, parcel delivery, and express courier services to both individual and business clients. Additionally, it earns significant revenue from its financial services, which include savings products, payment solutions, and investment services, offered through BancoPosta. The company also derives income from its insurance services, providing life and non-life insurance products. Moreover, Poste Italiane benefits from strategic partnerships and collaborations, such as agreements with e-commerce platforms to enhance its logistics and parcel delivery capabilities. The combination of these revenue streams allows the company to maintain a robust financial position and adapt to changing market dynamics.

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: Neutral
• Last Price: 17.90
• 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:PST, the sentiment is Neutral. The current price of 17.9 is below the 20-day moving average (MA) of 18.00, below the 50-day MA of 18.01, and above the 200-day MA of 15.01, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 27.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€23.29B	11.09	19.58%	8.38%	-1.29%	11.16%
Sector *	67 Neutral	$16.78B	17.07	4.47%	3.71%	4.76%	6.06%
0N54	―	€6.81B	8.23	16.17%	4.60%	―	―
0MHD	―	€4.20B	12.10	13.68%	4.80%	―	―
0N4J	―	€9.45B	44.30	2.21%	4.37%	―	―
0NRE	―	€80.44B	11.35	25.20%	5.37%	―	―
0MUN	―	€3.28B	11.60	8.81%	5.01%	―	―