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

• Market Cap: €1.15B
• Dividend Yield: 3.34%
• Average Volume (3M): 80.83K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.60
• 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: 35,640,198
• 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: €43.85
• Price Target Upside: 35.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €36.00 ▲(11.63% 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 and capital efficiency

A moderate debt-to-equity ratio and a 24% ROE indicate a solid capital structure and efficient use of equity. This provides financial flexibility to fund bespoke builds, support capex for facilities, and absorb cyclical shocks without immediate refinancing pressure over the coming months.

Stable profitability and healthy operating margins

Maintained net profit and healthy EBIT/EBITDA margins reflect pricing power and operational discipline in a high-margin luxury segment. Sustainable margins support reinvestment in craftsmanship, after-sales services, and dividends, helping preserve fundamentals over the medium term.

Recurring after-sales revenue and high-end market positioning

A business model combining bespoke new builds with recurring after-sales services creates customer stickiness and predictable life-cycle revenue. This diversifies income beyond one-off deliveries and supports steadier cash flow and customer lifetime value over multiple quarters.

Negative Factors

Severe deterioration in free cash flow

An 85% drop in free cash flow and weak conversion of earnings into cash pressures liquidity for working capital-heavy builds. Persistent FCF weakness can force external financing, constrain capex or delay deliveries, and materially affect operational flexibility over months.

Top-line and gross margin deterioration

Declining revenue growth alongside shrinking gross margins suggests pricing pressure or rising costs in core yacht builds. In a bespoke, high-cost manufacturing model, continued margin erosion risks compressing profitability and undermining ability to fund premium service and craftsmanship.

Revenue timing and demand cyclicality risk

Earnings depend heavily on affluent consumer demand and on order backlog timing for bespoke yachts. This structural cyclicality and delivery schedule sensitivity create meaningful revenue timing risk and exposure to macro shocks that can persist for several quarters.

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

Company Description

Sanlorenzo S.p.A. designs, builds, and sells yachts and pleasure boats in Europe, the Asia-Pacific, the Americas, the Middle East, and Africa. The company operates through three divisions: Yacht, Superyacht, and Bluegame. It provides maintenance and charter services, as well as sells its own and other pre-owned yachts; and sport utility yachts under the Sanlorenzo and Bluegame brands. The company was formerly known as Cantieri Navali San Lorenzo SpA and changed its name to Sanlorenzo S.p.A in 2005. Sanlorenzo S.p.A was founded in 1958 and is based in Ameglia, Italy.

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. presents a mixed financial picture. The income statement reflects stable profitability but declining revenue growth and gross margins. The balance sheet is strong, with moderate leverage and high return on equity, indicating financial stability. However, the cash flow statement reveals significant challenges in cash generation, which could impact future operations.

Income Statement

Sanlorenzo S.p.A. shows a mixed performance in its income statement. The company has maintained a decent net profit margin of around 10% over the TTM, indicating stable profitability. However, the revenue growth rate has declined by 3.16% in the TTM, which is a concern. The gross profit margin has decreased significantly from previous years, suggesting potential cost management issues. Despite these challenges, the EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The balance sheet of Sanlorenzo S.p.A. is relatively strong, with a manageable debt-to-equity ratio of 0.48 in the TTM, indicating moderate leverage. The return on equity is robust at 24.31%, showcasing effective use of shareholder funds. The equity ratio is stable, suggesting a solid capital structure. Overall, the company maintains a healthy balance sheet with a good balance between debt and equity.

Cash Flow

Sanlorenzo S.p.A. faces challenges in its cash flow statement. The free cash flow has significantly declined, with a negative growth rate of 85.15% in the TTM, raising concerns about cash generation. The operating cash flow to net income ratio is low, indicating potential issues in converting earnings into cash. The negative free cash flow to net income ratio further highlights cash flow constraints. Despite these issues, the company has managed to maintain positive operating cash flow.

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: Positive
• Last Price: 32.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 32.25 is above the 20-day moving average (MA) of 31.95, above the 50-day MA of 30.60, and above the 200-day MA of 31.18, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 67.74 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
SL	68 Neutral	€1.15B	10.68	23.62%	3.34%	9.07%	6.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TISG	59 Neutral	€225.25M	6.65	―	6.03%	12.02%	-8.17%