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Saipem SpA (IT:SPM)
:SPM
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Saipem SpA (SPM) AI Stock Analysis

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IT:SPM

Saipem SpA

(SPM)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
€4.50
▲(2.04% Upside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by improving financial performance—strong recent cash flow, a return to profitability, and reduced leverage—offset by weak technical positioning (price below key moving averages) and a valuation that is only moderately attractive (good yield but a ~24.9 P/E despite thin margins and execution risk).
Positive Factors
Strong cash generation
Sustained TTM operating cash flow of €1.50B and free cash flow of €1.22B materially improves financial flexibility. Over 2–6 months this supports continued deleveraging, funds capex and vessel upkeep, and provides a buffer for working-capital swings inherent to large EPCI contracts.
Negative Factors
Thin net margins
Net margins near ~2% leave limited room for cost overruns or input-price swings on large EPCI projects. Over the medium term this structural thinness amplifies earnings volatility, weakens incremental returns on new contracts, and constrains the firm's ability to absorb adverse project developments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained TTM operating cash flow of €1.50B and free cash flow of €1.22B materially improves financial flexibility. Over 2–6 months this supports continued deleveraging, funds capex and vessel upkeep, and provides a buffer for working-capital swings inherent to large EPCI contracts.
Read all positive factors

Saipem SpA (SPM) vs. iShares MSCI Italy ETF (EWI)

Saipem SpA Business Overview & Revenue Model

Company Description
Saipem S.p.A. is a global provider of integrated solutions for the energy and infrastructure sectors. The company's operations are strategically divided into five key segments: Offshore Engineering & Construction, Onshore Engineering & Constructio...
How the Company Makes Money
Saipem primarily makes money by bidding for, winning, and executing large-scale contracted projects for energy companies and project developers. Its revenues are largely generated from: (1) EPCI and construction project contracts (offshore and ons...

Saipem SpA Financial Statement Overview

Summary
Fundamentals show a meaningful turnaround: profitability has improved versus 2021–2022 with positive TTM net income (312M) and improved EBIT/EBITDA margins (~4.8% / ~10.2%), revenue is still growing (~6.4% TTM), leverage has stepped down (debt-to-equity ~0.47x), and cash generation is strong (TTM operating cash flow 1.50B; free cash flow 1.22B). The main constraint is still quality/consistency risk: net margins remain thin (~2%), gross margin volatility suggests uneven contract profitability, and historical volatility in leverage and cash conversion raises cyclicality/execution risk.
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue15.52B15.50B14.55B11.88B9.98B6.53B
Gross Profit5.53B1.88B3.38B2.19B1.71B-509.00M
EBITDA1.58B1.71B1.33B951.00M519.00M-1.83B
Net Income312.00M312.00M306.00M179.00M-209.00M-2.47B
Balance Sheet
Total Assets5.68B14.44B14.52B12.87B12.40B11.54B
Cash, Cash Equivalents and Short-Term Investments1.22B1.54B2.54B2.22B2.13B1.69B
Total Debt1.24B3.11B3.02B3.12B3.03B3.94B
Total Liabilities3.02B11.80B11.99B10.47B10.31B11.19B
Stockholders Equity2.66B2.64B2.52B2.39B2.07B326.00M
Cash Flow
Free Cash Flow1.22B1.14B724.00M104.00M-1.00B-208.00M
Operating Cash Flow1.50B1.50B1.06B586.00M-477.00M90.00M
Investing Cash Flow-869.00M-640.00M-542.00M-175.00M5.00M-490.00M
Financing Cash Flow-1.03B-1.23B-544.00M-282.00M871.00M331.00M

Saipem SpA Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.41
Price Trends
50DMA
4.35
Negative
100DMA
4.15
Positive
200DMA
3.37
Positive
Market Momentum
MACD
-0.01
Negative
RSI
52.42
Neutral
STOCH
64.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SPM, the sentiment is Neutral. The current price of 4.41 is above the 20-day moving average (MA) of 4.30, above the 50-day MA of 4.35, and above the 200-day MA of 3.37, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 64.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:SPM.

Saipem SpA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€26.74B15.2111.65%3.02%-6.16%7.18%
72
Outperform
€246.62M13.168.18%4.19%26.41%57.53%
65
Neutral
€70.14B13.555.25%4.57%-3.05%122.49%
64
Neutral
€8.26B26.2411.83%3.86%1.88%-19.31%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:SPM
Saipem SpA
4.19
2.06
96.62%
IT:ENI
ENI S.p.A.
23.98
10.12
72.99%
IT:TEN
Tenaris
24.94
10.38
71.33%
IT:GSP
Gas Plus S.p.A.
5.66
1.59
38.96%
IT:NXT
Next Geosolutions Europe SpA
15.80
5.60
54.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2026