Poste Italiane SPA (PST) AI Stock Analysis

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Poste Italiane SPA

(LSE:PST)

Rating:65Neutral

Price Target:―

Poste Italiane SPA exhibits strong profitability and operational efficiency, supported by a favorable valuation. However, challenges such as fluctuating revenue growth, cash flow volatility, and high leverage pose risks. The stock's positive technical trend adds to its appeal, but careful monitoring of financial stability is advisable.

Positive Factors

Growth Opportunities

Poste Italiane is well positioned to benefit from growth in Italian ecommerce and insurance penetration, driving expansion in Parcel, Payments, and Insurance.

Margin Expansion

Cost discipline supports margin expansion for Poste Italiane, enhancing profitability.

Negative Factors

Lack of Catalysts

Most visible near-term upside for Poste Italiane is priced in, creating a lack of strong arguments for further multiple expansion.

Valuation Concerns

Poste Italiane's valuation reflects strong delivery but suggests limited further upside without additional catalysts.

Poste Italiane SPA (PST) vs. iShares MSCI Italy ETF (EWI)

Market Cap

€24.66B

Dividend Yield4.71%

Average Volume (3M)2.09M

Price to Earnings (P/E)11.8

Beta (1Y)0.71

Revenue Growth5.04%

EPS Growth3.88%

CountryIT

Employees115,147

SectorUtilities

Sector Strength79

IndustryConglomerates

Share Statistics

EPS (TTM)0.46

Shares Outstanding1,306,110,000

10 Day Avg. Volume2,236,875

30 Day Avg. Volume2,087,830

Financial Highlights & Ratios

PEG Ratio18.27

Price to Book (P/B)2.06

Price to Sales (P/S)0.00

P/FCF Ratio11.09

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€19.62

Price Target Upside2.83% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering9

Poste Italiane SPA Business Overview & Revenue Model

Company DescriptionPoste 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 MoneyPoste Italiane makes money through multiple revenue streams, primarily divided into four main sectors: postal and business services, financial services, insurance services, and payments and mobile services. The postal and business services segment generates revenue through traditional mail delivery, parcel delivery, and logistics solutions for both individuals and businesses. The financial services division contributes to earnings by offering savings accounts, investment products, and third-party loan and mortgage services. The insurance services segment derives revenue from life and non-life insurance products. Additionally, the payments and mobile services sector brings in income through digital payment solutions, mobile telecommunications, and related services. The company benefits from significant partnerships with banking and insurance entities, which enhance its product offerings and contribute to its robust revenue model.

Poste Italiane SPA Financial Statement Overview

Summary

Poste Italiane SPA demonstrates strong profitability with stable EBIT and EBITDA margins. However, fluctuating revenue growth and inconsistent cash flow generation, alongside a high debt-to-equity ratio, present financial challenges.

Income Statement

Positive

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

Neutral

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

Neutral

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
2.55B	3.06B	2.29B	1.85B	1.52B
	EBITDA
3.65B	3.65B	3.58B	3.14B	2.46B
	Net Income Common Stockholders
1.99B	1.92B	1.58B	1.58B	1.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.09B	40.31B	44.78B	37.80B	39.20B
	Total Assets
277.10B	270.83B	261.63B	284.73B	272.36B
	Total Debt
94.08B	11.51B	13.41B	16.75B	18.12B
	Net Debt
89.41B	3.38B	4.46B	11.27B	12.28B
	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
0.00	568.00M	-630.00M	3.43B	1.24B
	Operating Cash Flow
2.90B	1.41B	180.00M	4.18B	1.92B
	Investing Cash Flow
0.00	-994.00M	-1.61B	-422.00M	-601.00M
	Financing Cash Flow
0.00	-1.19B	-1.55B	-321.00M	1.05B

Poste Italiane SPA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price19.08

Price Trends

50DMA

17.64

Positive

100DMA

16.41

Positive

200DMA

14.64

Positive

Market Momentum

MACD

0.38

Positive

RSI

69.40

Neutral

STOCH

54.61

Neutral

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 19.08 is above the 20-day moving average (MA) of 18.76, above the 50-day MA of 17.64, and above the 200-day MA of 14.64, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 69.40 is Neutral, neither overbought nor oversold. The STOCH value of 54.61 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PST	65 Neutral	€24.66B	11.75	19.58%	4.71%	5.04%	3.88%
Sector *	64 Neutral	$8.54B	10.30	4.69%	4.37%	4.14%	-13.04%
0N54		€7.30B	8.82	16.17%	4.29%	―	―
0MHD		€4.68B	13.50	13.68%	3.99%	―	―
0N4J		€9.32B	39.68	2.21%	5.69%	―	―
0NRE		€81.56B	11.50	25.20%	5.35%	―	―
0MUN		€3.46B	12.24	8.81%	4.42%	―	―

* Utilities Sector Average

Performance Comparison

IT:PST

Poste Italiane SPA

19.09

7.20

60.61%

GB:0N54

A2A SpA

2.33

0.49

26.63%

GB:0MHD

ACEA SPA

22.04

6.10

38.27%

GB:0N4J

Edison Spa

1.84

0.31

20.26%

GB:0NRE

Enel S.p.A.

8.03

1.76

28.07%

GB:0MUN

Iren S.p.A.

2.68

0.88

48.89%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.