Sanlorenzo S.p.A. (SL) AI Stock Analysis

• Market Cap: €1.05B
• Dividend Yield: 3.4%
• Average Volume (3M): 80.83K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.63
• Revenue Growth: 9.07%
• EPS Growth: 6.71%
• Country: IT
• Employees: 1,659
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.76
• Shares Outstanding: 35,624,570
• 10 Day Avg. Volume: 56,677
• 30 Day Avg. Volume: 80,835
• PEG Ratio: 1.05
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 1.18
• P/FCF Ratio: -61.64
• 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: €44.90
• Price Target Upside: 49.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €32.00 ▲(6.84% Upside)

Sanlorenzo S.p.A. shows a strong valuation with an attractive P/E ratio and dividend yield, which are significant positives. However, the technical analysis indicates a bearish trend, and the financial performance highlights concerns with cash flow generation despite a strong balance sheet. These mixed factors result in a moderate overall stock score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with moderate leverage and a robust return on equity indicates financial stability and effective use of shareholder funds.

Operational Efficiency

Healthy EBIT and EBITDA margins suggest that the company is managing its operations efficiently, which supports long-term profitability.

Revenue Growth

Consistent revenue growth demonstrates the company's ability to expand its market reach and maintain demand for its luxury yachts.

Negative Factors

Declining Revenue Growth

A decline in revenue growth rate indicates potential challenges in sustaining market expansion and could impact future earnings.

Cash Flow Challenges

Significant decline in free cash flow raises concerns about the company's ability to generate cash, which is crucial for funding operations and growth.

Gross Margin Decline

A decrease in gross profit margin suggests potential cost management issues, which could pressure profitability if not addressed.

Sanlorenzo S.p.A. Business Overview & Revenue Model

Company Description

Sanlorenzo S.p.A. (SL) is an Italian luxury yacht manufacturer based in Ameglia, specializing in the design, construction, and sale of bespoke motor yachts and superyachts. The company operates primarily in the high-end maritime sector, offering a range of products that include planing, semi-displacement, and displacement yachts. Sanlorenzo is renowned for its craftsmanship, innovative designs, and attention to detail, catering to a discerning clientele that values exclusivity and luxury in their yachting experiences.

How the Company Makes Money

Sanlorenzo generates revenue primarily through the sale of its luxury yachts, which are typically custom-built to meet the specific desires of individual customers. The company earns money from both new yacht sales and the sale of used yachts through its brokerage services. Additionally, Sanlorenzo offers after-sales services, including maintenance and repairs, which contribute to recurring revenue. Strategic partnerships with luxury brands and participation in yacht shows and exhibitions enhance visibility and attract high-net-worth clients, further bolstering sales. The company also benefits from a robust global distribution network that facilitates marketing and sales efforts in key markets.

Sanlorenzo S.p.A. Financial Statement Overview

Summary

Sanlorenzo S.p.A. demonstrates strong revenue growth and profitability with healthy margins and a stable balance sheet. However, cash flow challenges, particularly in free cash flow generation, could impact future financial flexibility. The company should focus on enhancing cash flow management to sustain its growth trajectory.

Income Statement

Sanlorenzo S.p.A. shows a strong revenue growth trajectory with a TTM revenue growth rate of 2.97%. The company maintains healthy profitability margins, with a gross profit margin of 29.96% and a net profit margin of 10.36% in the TTM period. EBIT and EBITDA margins are also robust at 14.21% and 18.11%, respectively. However, the gross profit margin has decreased compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.47 in the TTM period. Return on equity is strong at 24.31%, indicating effective use of equity to generate profits. The equity ratio stands at 36.57%, suggesting a solid equity base. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

The cash flow statement reveals challenges in free cash flow generation, with a negative free cash flow growth rate of -40.83% in the TTM period. The operating cash flow to net income ratio is low at 5.94%, indicating potential issues in converting income into cash. The free cash flow to net income ratio is negative, highlighting cash flow constraints. These factors suggest a need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	963.42M	866.71M	817.89M	673.52M	533.14M
Gross Profit	317.33M	137.62M	244.79M	510.76M	354.81M	292.98M
EBITDA	177.00M	181.47M	163.46M	130.01M	94.63M	69.18M
Net Income	106.11M	103.12M	92.84M	74.15M	51.01M	34.51M
Balance Sheet
Total Assets	1.17B	1.11B	841.08M	743.79M	595.04M	502.37M
Cash, Cash Equivalents and Short-Term Investments	168.04M	171.12M	214.01M	197.37M	141.27M	94.36M
Total Debt	182.01M	143.31M	76.02M	100.02M	100.23M	90.66M
Total Liabilities	677.90M	667.35M	481.12M	453.71M	365.90M	316.98M
Stockholders Equity	487.52M	436.14M	358.27M	288.53M	229.04M	185.75M
Cash Flow
Free Cash Flow	-1.75M	-18.47M	72.65M	95.16M	48.62M	15.18M
Operating Cash Flow	44.03M	30.86M	117.15M	145.11M	97.83M	46.00M
Investing Cash Flow	-33.86M	-84.97M	-51.08M	-69.15M	-49.62M	-31.07M
Financing Cash Flow	-15.18M	-2.74M	-19.88M	-70.91M	-1.29M	19.25M

Sanlorenzo S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SL, the sentiment is Neutral. The current price of 29.95 is above the 20-day moving average (MA) of 29.69, below the 50-day MA of 31.50, and below the 200-day MA of 30.66, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:SL.

Sanlorenzo S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TISG	70 Outperform	€217.57M	6.42	―	5.97%	12.02%	-8.17%
SL	68 Neutral	€1.05B	9.74	23.62%	3.40%	9.07%	6.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%