Saipem SpA (SPM) AI Stock Analysis

• Market Cap: €5.87B
• Dividend Yield: 6.99%
• Average Volume (3M): 34.08M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.90
• Revenue Growth: 18.52%
• EPS Growth: 29.29%
• Country: US
• Employees: 30,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.04
• Shares Outstanding: 1,995,631,800
• 10 Day Avg. Volume: 33,554,585
• 30 Day Avg. Volume: 34,084,585
• PEG Ratio: 0.21
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 6.82
• 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: €3.18
• Price Target Upside: 2.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €3.50 ▲(12.90% Upside)

Score is driven primarily by improving financial performance and very strong cash flow generation, tempered by higher leverage on the balance sheet. Technicals show a solid uptrend but are overextended (very high RSI/Stoch), which raises near-term pullback risk. Valuation is supportive due to a reasonable P/E and a strong dividend yield.

Positive Factors

Strong cash generation

Robust free cash flow growth and high cash conversion indicate durable internal funding for capex, maintenance and strategic investments. Over 2–6 months this supports debt repayment, sustains operations through project cycles and funds selective expansion without overreliance on external financing.

Contract structure & partnerships

A mix of fixed-price and cost-plus contracts plus JV partnerships improves revenue visibility and risk-sharing on multi-year projects. This business model supports steady backlog conversion, enhances bidding scale and protects margins across project phases, strengthening medium-term revenue resilience.

Renewables transition positioning

Active involvement in renewable energy projects diversifies Saipem beyond oil & gas and aligns with structural decarbonization demand. This expands addressable markets for engineering and construction capabilities, offering secular growth opportunities and reducing long-term dependency on cyclical hydrocarbon spend.

Negative Factors

High leverage

Elevated leverage constrains financial flexibility and increases interest burden risk, particularly if project cash flows are delayed. Even with good FCF, sustained indebtedness limits ability to pursue opportunistic investments or absorb shocks, making capital structure improvement a priority for stability.

Thin net profitability

A low net margin after solid gross margin implies high overhead, financing costs or project-level overruns. In a project-driven business this reduces the buffer against cost inflation and contract disputes, leaving earnings sensitive to execution risks and limiting retained earnings for reinvestment.

Oil & gas cyclicality exposure

Heavy exposure to oil & gas capital spending cycles creates revenue volatility and sensitivity to commodity-driven investment decisions. Even with growing renewables work, core project demand can swing with market cycles, raising the risk of multi-quarter project slowdowns and bid cancellations.

Saipem SpA Business Overview & Revenue Model

Company Description

Saipem SpA provides energy and infrastructure solutions worldwide. The company operates through five divisions: Offshore Engineering & Construction (E&C), Onshore Engineering & Construction, Offshore Drilling, Onshore Drilling, and XSIGHT. It offers engineering, construction, installation of platforms, pipelines, subsea fields, maintenance, modification, operation, and decommissioning activities, as well as develops marine wind farms and energy integration projects. The company also designs onshore project in the LNG and regasification, refining, petrochemical, fertilizers, pipelines, gas, oil processing stations, floaters, renewables, biotechnologies, CO2 capture, transportation, storage, and hydrogen production and transportation. In addition, the company provides procurement, project management, construction, and engineering integrated services for the energy industry markets and public infrastructures, as well as offshore and onshore drilling services on all types of rigs and in all geographical areas. As of December 31, 2021, its offshore drilling fleet consisted of twelve vessels, including six ultra-deep-water units, five high specification jack-ups, and one standard jack-ups. The company also operates 9 fabrication yards and a sea fleet of 41 vessels; and onshore drilling fleet comprised 84 units. Saipem S.p.A. is headquartered in Milan, Italy.

How the Company Makes Money

Saipem generates revenue primarily through contracts in the oil and gas sector, focusing on engineering and construction services. Its revenue model includes fixed-price contracts and cost-plus contracts for large-scale projects, which can span several years. Key revenue streams come from offshore and onshore drilling operations, pipeline construction, and infrastructure development. Saipem also earns income through maintenance and support services for existing facilities. Significant partnerships with major oil companies and participation in joint ventures enhance its market reach and provide opportunities for large project bids, contributing to its overall earnings. Additionally, the company's investment in renewable energy projects is expected to diversify its revenue sources in the long term.

Saipem SpA Financial Statement Overview

Summary

Strong overall recovery supported by improved profitability (gross margin 27.12%, positive net margin 2.14%) and very strong cash generation (FCF growth 26.49%, operating cash flow to net income 4.41). Balance sheet is the main constraint due to higher leverage (debt-to-equity 1.10) despite improved ROE (12.64%).

Income Statement

Saipem SpA has shown a strong recovery in its income statement metrics. The company achieved a gross profit margin of 27.12% and a net profit margin of 2.14% in the TTM period, indicating improved profitability. Revenue growth rate of 2.17% in the TTM period shows steady growth. The EBIT and EBITDA margins also improved, reflecting better operational efficiency. However, the company needs to maintain this positive trajectory to ensure long-term stability.

Balance Sheet

The balance sheet of Saipem SpA reflects a moderate financial position. The debt-to-equity ratio of 1.10 in the TTM period indicates a high level of leverage, which could pose a risk if not managed properly. The return on equity (ROE) improved to 12.64%, showing better utilization of equity. The equity ratio stands at 18.78%, suggesting a balanced asset structure. Continued focus on reducing debt levels could enhance financial stability.

Cash Flow

Saipem SpA's cash flow metrics are strong, with a significant free cash flow growth rate of 26.49% in the TTM period, indicating robust cash generation capabilities. The operating cash flow to net income ratio of 4.41 shows efficient cash conversion. The free cash flow to net income ratio of 0.77 suggests good cash flow management. Maintaining this cash flow performance will be crucial for future investments and debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.35B	14.55B	11.88B	9.98B	6.53B	7.40B
Gross Profit	4.16B	3.38B	2.19B	1.71B	-509.00M	1.40B
EBITDA	1.42B	1.33B	951.00M	519.00M	-1.83B	-283.00M
Net Income	328.00M	306.00M	179.00M	-209.00M	-2.47B	-1.14B
Balance Sheet
Total Assets	13.89B	14.52B	12.87B	12.40B	11.54B	11.26B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.54B	2.22B	2.13B	1.69B	1.75B
Total Debt	2.87B	3.02B	3.12B	3.03B	3.94B	3.46B
Total Liabilities	11.28B	11.99B	10.47B	10.31B	11.19B	8.31B
Stockholders Equity	2.61B	2.52B	2.39B	2.07B	326.00M	2.92B
Cash Flow
Free Cash Flow	1.12B	724.00M	104.00M	-1.00B	-208.00M	-199.00M
Operating Cash Flow	1.45B	1.06B	586.00M	-477.00M	90.00M	123.00M
Investing Cash Flow	-616.00M	-542.00M	-175.00M	5.00M	-490.00M	-463.00M
Financing Cash Flow	-1.32B	-544.00M	-282.00M	871.00M	331.00M	-238.00M

Saipem SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SPM, the sentiment is Positive. The current price of 3.1 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.50, and above the 200-day MA of 2.32, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 80.93 is Negative, neither overbought nor oversold. The STOCH value of 94.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SPM.

Saipem SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	78 Outperform	€20.04B	11.06	12.14%	4.46%	-11.36%	-20.23%
GSP	75 Outperform	€303.27M	17.40	7.52%	2.98%	17.30%	18.72%
SPM	73 Outperform	€5.87B	17.80	13.05%	6.99%	18.52%	29.29%
SRG	72 Outperform	€19.25B	13.78	17.62%	5.18%	-8.04%	30.49%
ARN	70 Outperform	€961.41M	11.52	26.22%	3.37%	30.89%	143.25%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ENI	63 Neutral	€51.59B	18.69	5.51%	6.39%	-5.46%	13.79%