Saipem SpA (SPM) AI Stock Analysis

• Market Cap: €4.45B
• Dividend Yield: 7.68%
• Average Volume (3M): 34.08M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.96
• Revenue Growth: 18.52%
• EPS Growth: 29.29%
• Country: IT
• 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: €3.20
• Price Target Upside: 45.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €2.50 ▲(13.64% Upside)

Saipem SpA's overall stock score reflects a strong financial performance with robust cash flow and profitability improvements. The valuation is attractive due to a reasonable P/E ratio and high dividend yield. However, technical analysis indicates potential short-term weakness, and high leverage remains a risk factor.

Positive Factors

Negative Factors

Saipem SpA Business Overview & Revenue Model

Company Description

Saipem SpA is a leading global engineering and construction company, primarily serving the energy and infrastructure sectors. Established in 1956 and headquartered in Italy, Saipem specializes in the design and implementation of complex projects across oil and gas, renewable energy, and civil construction. The company offers a wide range of services, including project management, engineering, procurement, construction, and installation, with a strong focus on innovation and sustainability in its operations.

How the Company Makes Money

Saipem generates revenue through various streams, primarily from its engineering and construction services in the oil and gas sector, which includes offshore and onshore projects. The company also earns income from its activities in renewable energy, such as the development of wind and solar projects. Saipem's revenue model is largely project-based, where it enters contracts with clients for specific projects, often involving significant capital investment. Key revenue streams include long-term contracts with major oil companies, partnerships with national and international corporations, and joint ventures that enable it to undertake large-scale projects. Additionally, Saipem's focus on technological innovation and digital transformation allows it to optimize operational efficiency and enhance project delivery, contributing to its profitability.

Saipem SpA Financial Statement Overview

Summary

Saipem SpA has shown a commendable recovery in its financial performance with improvements across income, balance sheet, and cash flow metrics. Strong cash flow generation and improved profitability are positive, but high leverage remains a concern.

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: Negative
• Last Price: 2.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SPM, the sentiment is Negative. The current price of 2.2 is below the 20-day moving average (MA) of 2.30, below the 50-day MA of 2.37, and above the 200-day MA of 2.19, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 16.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:SPM.

Saipem SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	75 Outperform	€18.60B	10.27	12.14%	4.14%	-11.36%	-20.23%
GSP	75 Outperform	€304.14M	17.45	7.52%	2.88%	17.30%	18.72%
ENI	71 Outperform	€48.42B	17.55	5.51%	6.34%	-5.46%	13.79%
SRG	70 Outperform	€18.28B	13.09	17.62%	5.19%	-8.04%	30.49%
ARN	70 Outperform	€1.06B	12.52	26.22%	3.13%	30.89%	143.25%
SPM	66 Neutral	€4.45B	13.47	13.05%	7.68%	18.52%	29.29%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%