Risanamento SPA (RN) AI Stock Analysis

• Market Cap: €35.48M
• Dividend Yield: N/A
• Average Volume (3M): 3.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: 273.44%
• EPS Growth: 23.12%
• Country: IT
• Employees: 30
• Sector: General
• Sector Strength: N/A
• Industry: Real Estate - Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,800,844,200
• 10 Day Avg. Volume: 2,748,870
• 30 Day Avg. Volume: 3,468,030
• PEG Ratio: <0.01
• Price to Book (P/B): 10.16
• Price to Sales (P/S): 391.71
• P/FCF Ratio: -1.71
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: €0.02 ▼(-5.00% Downside)

Risanamento SPA's overall stock score is primarily impacted by its poor financial performance, characterized by significant losses and financial instability. Technical analysis provides mixed signals, with potential overbought conditions and lack of strong momentum. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

The company's significant revenue growth indicates strong demand for its real estate projects, suggesting potential for future expansion and market capture.

Sustainable Development Focus

A focus on sustainable development aligns with global trends towards eco-friendly urbanization, potentially enhancing long-term competitiveness and appeal.

Public-Private Partnerships

These partnerships can provide stable income streams and access to government contracts, supporting long-term financial stability and project pipeline.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, which can limit the company's ability to invest in new projects and weather economic downturns.

Cash Flow Challenges

Poor cash flow performance raises concerns about liquidity and operational efficiency, potentially impacting the company's ability to fund ongoing operations and growth.

Profitability Issues

Severe profitability issues reflect operational inefficiencies and market challenges, threatening long-term financial health and investor confidence.

Risanamento SPA Business Overview & Revenue Model

Company Description

Risanamento SpA is a property and development company listed on the Italian Stock Exchange which has gained extensive experience of several years in the Italian and foreign real estate sector, in the largest cities in Europe and in the United States. The current focus of the Company is represented by the redevelopment and development activities of the strategic metropolitan area of ??Milan Santa Giulia for a buildability of over 400,000 square meters. residuals and located in the south-east area of ??Milan, and the management of an income real estate portfolio of approximately 350 million euros in Italy.

How the Company Makes Money

Risanamento SPA generates revenue primarily through its real estate development projects, which include the construction and sale of residential units, commercial properties, and mixed-use developments. The company earns income from the sale of properties, leasing commercial spaces, and providing property management services. Additionally, Risanamento may engage in public-private partnerships for urban redevelopment projects, which can provide steady income streams through government contracts and grants. The company's ability to secure favorable financing terms and partnerships with local governments enhances its profitability, as it allows for larger-scale projects that can lead to significant returns on investment.

Risanamento SPA Financial Statement Overview

Summary

Risanamento SPA faces significant financial challenges across all verticals. The income statement shows persistent losses and volatile revenue growth, while the balance sheet reveals high leverage and negative equity, indicating financial instability. Cash flow analysis highlights inefficiencies and liquidity concerns. The company must address these issues to improve its financial health and stability.

Income Statement

The income statement reveals significant challenges. The TTM data shows a negative gross profit margin and a net profit margin close to -99%, indicating substantial losses. Despite a revenue growth rate of 33.38% in the TTM, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins. Historical data shows volatile revenue growth, with a massive spike in 2023 but a decline in subsequent periods. Overall, the company faces severe profitability issues, impacting its financial health.

Balance Sheet

The balance sheet highlights high leverage and negative equity in the TTM, with a debt-to-equity ratio of 2.45. The return on equity is negative, reflecting ongoing losses. Although the equity ratio is not directly calculated, the negative stockholders' equity suggests financial instability. Historical data shows fluctuating debt levels and equity, indicating potential risks in financial stability and solvency.

Cash Flow

Cash flow analysis shows a troubling picture, with a significant decline in free cash flow growth in the TTM. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is negative, further highlighting cash flow challenges. Historical data shows inconsistent cash flow performance, with periods of negative free cash flow growth, raising concerns about liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.42M	134.00K	595.60M	370.00K	599.00K	359.00K
Gross Profit	1.53M	108.00K	30.16M	-9.09M	-10.41M	-5.85M
EBITDA	-24.95M	-45.72M	12.32M	-40.23M	-14.67M	-13.68M
Net Income	-25.89M	-47.46M	10.65M	-53.78M	-24.93M	-25.81M
Balance Sheet
Total Assets	141.84M	151.54M	175.31M	707.08M	731.99M	719.95M
Cash, Cash Equivalents and Short-Term Investments	24.00M	9.94M	50.35M	3.05M	5.39M	2.98M
Total Debt	2.35M	2.74M	111.00K	566.29M	517.23M	475.92M
Total Liabilities	142.59M	146.37M	122.69M	665.10M	636.23M	599.26M
Stockholders Equity	-751.00K	5.17M	52.62M	41.97M	95.76M	120.69M
Cash Flow
Free Cash Flow	6.83M	-30.76M	40.05M	-44.22M	-37.26M	-29.85M
Operating Cash Flow	8.19M	-29.30M	40.17M	-44.05M	-37.10M	-29.68M
Investing Cash Flow	-5.28M	-3.97M	-2.58M	-1.17M	-1.77M	12.32M
Financing Cash Flow	-12.21M	12.00K	3.51M	49.06M	41.30M	10.72M

Risanamento SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RN, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.40 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:RN.

Risanamento SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
RN	40 Underperform	€35.48M	-1.33	-200.02%	―	273.44%	23.12%