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Poste Italiane SPA (IT:PST)
:PST

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)

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
68
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
55
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
47
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
13.48B20.14B31.81B31.64B29.86B
Gross Profit
4.14B5.66B8.90B8.31B7.88B
EBIT
2.55B3.06B2.29B1.85B1.52B
EBITDA
3.65B3.65B3.58B3.14B2.46B
Net Income Common Stockholders
1.99B1.92B1.58B1.58B1.21B
Balance SheetCash, Cash Equivalents and Short-Term Investments
39.09B40.31B44.78B37.80B39.20B
Total Assets
277.10B270.83B261.63B284.73B272.36B
Total Debt
94.08B11.51B13.41B16.75B18.12B
Net Debt
89.41B3.38B4.46B11.27B12.28B
Total Liabilities
265.39B260.39B252.69B272.62B260.85B
Stockholders Equity
11.58B10.32B8.89B12.10B11.50B
Cash FlowFree Cash Flow
0.00568.00M-630.00M3.43B1.24B
Operating Cash Flow
2.90B1.41B180.00M4.18B1.92B
Investing Cash Flow
0.00-994.00M-1.61B-422.00M-601.00M
Financing Cash Flow
0.00-1.19B-1.55B-321.00M1.05B

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
ITPST
65
Neutral
€24.66B11.7519.58%4.71%5.04%3.88%
64
Neutral
$8.54B10.304.69%4.37%4.14%-13.04%
€7.30B8.8216.17%4.29%
€4.68B13.5013.68%3.99%
€9.32B39.682.21%5.69%
€81.56B11.5025.20%5.35%
€3.46B12.248.81%4.42%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.