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

• Market Cap: €1.08B
• Dividend Yield: 3.38%
• Average Volume (3M): 46.25K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.72
• Revenue Growth: 13.61%
• EPS Growth: 8.72%
• Country: IT
• Employees: 1,659
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.61
• Shares Outstanding: 35,578,796
• 10 Day Avg. Volume: 50,592
• 30 Day Avg. Volume: 46,252
• PEG Ratio: 2.86
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -47.65
• 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: 52.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: €34.00 ▲(11.48%Upside)

Sanlorenzo S.p.A. is well-positioned with strong financial performance and attractive valuation, making it a compelling investment. The robust financial health and low valuation metrics are significant strengths. Technical indicators suggest moderate market momentum, with no significant concerns noted in recent corporate events or earnings calls.

Positive Factors

Financial Performance

Net profit beat forecast by 4%, closing at EUR 21.2M due to fiscal benefits.

Order Growth

Sanlorenzo's steady order intake was better than forecast, supported by loyal customers, strong reputation, and high-end positioning.

Revenue and Earnings

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

Negative Factors

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 Momentum

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

Revenue Decline

Sanlorenzo stand-alone closed with revenues down 2.6% as the growth in super-yacht division did not offset the decrease in the 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. While operational cash flows are strong, 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
	EBIT
139.28M	125.88M	102.73M	72.19M	49.03M
	EBITDA
177.84M	163.46M	130.01M	94.63M	69.18M
	Net Income Common Stockholders
103.12M	92.84M	74.15M	51.01M	34.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
171.12M	214.01M	197.37M	141.27M	94.36M
	Total Assets
1.11B	841.08M	743.79M	595.04M	502.37M
	Total Debt
145.37M	76.02M	100.02M	100.23M	90.66M
	Net Debt
9.72M	-116.48M	-46.30M	-41.05M	-3.70M
	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: 30.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 30.5 is below the 20-day moving average (MA) of 30.54, above the 50-day MA of 28.55, and below the 200-day MA of 31.68, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 55.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.61 is Positive, 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
AZM	83 Outperform	€3.69B	6.41	31.12%	6.72%	-3.05%	26.73%
SL	80 Outperform	€1.08B	10.16	25.15%	3.38%	13.61%	8.72%
MONC	73 Outperform	€14.43B	22.55	18.81%	2.44%	4.18%	4.35%
Sector *	62 Neutral	$6.83B	11.28	2.95%	3.88%	2.70%	-24.56%