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

• Market Cap: €1.04B
• Dividend Yield: 2.98%
• Average Volume (3M): 55.36K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.71
• Revenue Growth: 13.61%
• EPS Growth: 8.72%
• Country: IT
• Employees: 1,659
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.61
• Shares Outstanding: 35,578,796
• 10 Day Avg. Volume: 57,550
• 30 Day Avg. Volume: 55,362
• PEG Ratio: 0.38
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.42
• 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: €46.37
• Price Target Upside: 57.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: €34.00 ▲(15.45%Upside)

Sanlorenzo S.p.A. scores well due to strong financial performance and attractive valuation, though technical indicators suggest cautious short-term trading. The lack of recent earnings call data and corporate events slightly hinders a comprehensive analysis.

Positive Factors

Earnings

Sanlorenzo's FY24 revenues and earnings per share exceeded forecasts, driven by strong performance in the super-yachts division.

Order Backlog

The order backlog for Sanlorenzo at the end of 2024 remained strong, exceeding EUR 1 billion.

Stock Valuation

The analyst maintains a BUY rating on Sanlorenzo, viewing the current stock valuation as undemanding despite temporary order intake contraction.

Negative Factors

Free Cash Flow

Free cash flow was lower than expected due to negative changes in working capital from shifts to direct distribution in key regions.

Order Intake

Weak order intake momentum is expected in early 2025 due to macro uncertainty delaying final orders.

Revenue Decline

Sanlorenzo stand-alone closed with revenues down 2.6% yoy to EUR 189.7M with the growth in super-yacht division not offsetting the decrease of yacht division.

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

Company Description

Sanlorenzo S.p.A. is a leading Italian luxury yacht manufacturer renowned for its high-quality, custom-built yachts and superyachts. The company operates in the luxury maritime sector, offering a range of products including motor yachts, superyachts, and crossover yachts, focusing on elegance, innovation, and craftsmanship.

How the Company Makes Money

Sanlorenzo S.p.A. generates revenue primarily through the sale of its luxury yachts and superyachts. The company's business model is centered around designing and manufacturing custom-built vessels tailored to the specific requirements of affluent clients. Key revenue streams include direct sales of new yachts, after-sales services, and maintenance. Additionally, Sanlorenzo benefits from strategic partnerships with luxury brands and yacht brokers, which aid in expanding its market reach and enhancing its brand image. The company's focus on quality and bespoke design allows it to command premium pricing, contributing significantly to its earnings.

Sanlorenzo S.p.A. Financial Statement Overview

Summary

Sanlorenzo S.p.A. exhibits strong financial health with robust revenue growth, profitability, and a solid balance sheet. The company effectively manages leverage and equity, supporting consistent shareholder returns. However, attention is needed to manage free cash flow volatility and cost pressures affecting gross margins.

Income Statement

Sanlorenzo S.p.A. demonstrates robust financial performance, with consistent revenue growth from €509.7M in 2019 to €982.8M in 2024, driven by strong market demand. The company maintains healthy profitability, evidenced by a consistent increase in net income, reaching €103.1M in 2024. The EBIT and EBITDA margins are strong, reflecting operational efficiency. However, a reduction in gross profit margin from 2022 to 2024 suggests rising cost pressures that need monitoring.

Balance Sheet

Sanlorenzo's balance sheet reflects a solid financial position with substantial equity growth, increasing from €153.3M in 2019 to €440.8M in 2024. The debt-to-equity ratio remains favorable, indicating prudent use of leverage. The return on equity has improved, showcasing effective utilization of shareholder funds. However, the equity ratio is relatively stable, suggesting balanced asset management. Continuous monitoring of debt levels is recommended to maintain financial stability.

Cash Flow

Sanlorenzo's cash flow analysis indicates positive operational cash flow trends, with significant free cash flow growth over the years, supporting reinvestment opportunities and shareholder returns. The operating cash flow to net income ratio highlights efficient cash generation relative to profits. However, fluctuations in free cash flow, particularly in 2024, indicate potential volatility in capital expenditures and financing activities that could impact liquidity if not managed carefully.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	866.71M	817.89M	673.52M	533.14M
Gross Profit	741.76M	151.24M	510.76M	354.81M	292.98M
EBITDA	177.84M	163.46M	130.01M	94.63M	69.18M
Net Income	103.12M	92.84M	74.15M	51.01M	34.51M
Balance Sheet
Total Assets	1.11B	841.08M	743.79M	595.04M	502.37M
Cash, Cash Equivalents and Short-Term Investments	171.12M	214.01M	197.37M	141.27M	94.36M
Total Debt	145.37M	76.02M	100.02M	100.23M	90.66M
Total Liabilities	667.35M	481.12M	453.71M	365.90M	316.98M
Stockholders Equity	436.14M	358.27M	288.53M	229.04M	185.75M
Cash Flow
Free Cash Flow	-18.47M	72.65M	95.16M	48.62M	15.18M
Operating Cash Flow	30.86M	117.15M	145.11M	97.83M	46.00M
Investing Cash Flow	-84.97M	-51.08M	-69.15M	-49.62M	-31.07M
Financing Cash Flow	450.00K	-17.37M	-70.91M	-1.29M	19.25M

Sanlorenzo S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.45
• 50DMA: Positive
• 100DMA: Positive
• 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:SL, the sentiment is Positive. The current price of 29.45 is below the 20-day moving average (MA) of 30.26, below the 50-day MA of 29.54, and below the 200-day MA of 31.31, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 32.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	75 Outperform	€290.44M	8.57	24.55%	3.88%	12.02%	-8.17%
SL	74 Outperform	€1.04B	9.81	25.15%	2.98%	13.61%	8.72%
Sector *	66 Neutral	€9.18B	14.50	5.85%	3.08%	3.86%	-31.71%