Technogym S.p.A. (TGYM) AI Stock Analysis

• Market Cap: €2.53B
• Dividend Yield: 2.39%
• Average Volume (3M): 198.26K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.74
• Revenue Growth: 11.50%
• EPS Growth: 18.64%
• Country: IT
• Employees: 2,337
• Sector: Healthcare
• Sector Strength: 37
• Industry: Leisure
• EPS (TTM): 0.28
• Shares Outstanding: 201,327,500
• 10 Day Avg. Volume: 223,324
• 30 Day Avg. Volume: 198,258
• PEG Ratio: 1.80
• Price to Book (P/B): 6.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.35
• 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: €12.87
• Price Target Upside: 1.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: €13.00 ▲(2.28%Upside)

Technogym S.p.A. receives a solid score driven by strong financial performance and positive technical indicators, reflecting robust revenue growth, profitability, and favorable market momentum. Despite its moderate valuation, the stock is supported by a stable financial base and a reasonable dividend yield. The lack of recent earnings call insights or significant corporate events limits further assessment.

Positive Factors

Financial Performance

Technogym reported better-than-expected FY-24 results, with a sequential acceleration of organic growth in Q4 to +15% and gross margin gains driving a 5% beat to adj. EBITDA in H2.

Shareholder Returns

Robust free cash flow generation driven by tight working capital management resulted in a further net cash pile, which will be partially returned to shareholders via a special dividend.

Stock Valuation

The stock trades at a 10% discount compared to its long-term average, suggesting potential for price appreciation.

Negative Factors

Market Segments

The B2B segment is forecasted to outperform B2C, with an expected 11% growth in Q3, supported by healthy trends in the Club and Hospitality & Residential segments.

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

Company Description

Technogym S.p.A. (TGYM) is a leading company in the fitness and wellness industry, renowned for designing, manufacturing, and selling a wide range of innovative fitness equipment and solutions. The company operates globally, serving various sectors including fitness clubs, hospitality, health, corporate, and private homes. Technogym offers a comprehensive product portfolio that includes cardiovascular machines, strength training equipment, and digital solutions that provide personalized training experiences through its proprietary platforms and applications.

How the Company Makes Money

Technogym S.p.A. generates revenue primarily through the sale of its fitness equipment and related solutions. The company's key revenue streams include direct sales to fitness clubs, hotels, and wellness centers, as well as to individual consumers for home use. Additionally, Technogym leverages its digital ecosystem to provide subscription-based services and content, which enhance user engagement and create recurring revenue opportunities. The company also benefits from significant partnerships with organizations in the sports and wellness sectors, which help to expand its market reach and drive sales growth. Technogym's focus on innovation and high-quality products ensures a strong brand presence, contributing to its financial performance.

Technogym S.p.A. Financial Statement Overview

Summary

Technogym S.p.A. demonstrates strong growth and profitability, supported by a robust balance sheet and healthy cash flow. The company shows impressive revenue growth and strong profitability margins, with excellent financial stability marked by low leverage and strong equity. However, there is room for operational efficiency improvements and better free cash flow conversion.

Income Statement

Technogym S.p.A. exhibits strong revenue growth with a significant increase from €808 million to €901 million (11.5% growth) in the most recent year. Gross Profit Margin improved to 41.4% from 43.8%, showing efficient cost management. Net Profit Margin increased to 9.7% from 9.1%, indicating improved profitability. However, EBIT Margin and EBITDA Margin reflect moderate EBIT and EBITDA growth relative to revenue, suggesting potential room for operational efficiency improvements.

Balance Sheet

The company's financial stability is evident with a low Debt-to-Equity Ratio of 0.19, indicating prudent leverage practices. Return on Equity is robust at 23%, demonstrating effective use of shareholder funds. An Equity Ratio of 41.9% underscores a strong equity position relative to assets, indicating a stable financial structure. Overall, the balance sheet reflects solid health and low financial risk.

Cash Flow

Operating Cash Flow to Net Income Ratio is strong at 1.78, highlighting excellent cash conversion. Free Cash Flow increased significantly by 60.4%, reflecting effective capital expenditure management. However, the Free Cash Flow to Net Income ratio is 1.31, suggesting potential improvements in converting net income into free cash flow. Overall, cash flow metrics are positive, with minor areas for improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	901.29M	808.09M	719.02M	609.74M	508.34M
Gross Profit	373.50M	354.06M	248.06M	206.10M	175.14M
EBITDA	177.41M	144.18M	123.78M	116.27M	83.36M
Net Income	87.04M	73.64M	63.59M	63.06M	36.00M
Balance Sheet
Total Assets	904.13M	818.31M	786.21M	763.09M	683.99M
Cash, Cash Equivalents and Short-Term Investments	268.71M	224.73M	225.24M	228.14M	202.06M
Total Debt	70.82M	65.90M	49.76M	86.73M	111.41M
Total Liabilities	517.34M	454.60M	440.28M	451.53M	393.44M
Stockholders Equity	379.00M	354.54M	343.92M	309.84M	288.17M
Cash Flow
Free Cash Flow	113.85M	70.98M	79.46M	67.75M	73.20M
Operating Cash Flow	155.41M	106.82M	114.42M	95.44M	97.60M
Investing Cash Flow	-38.61M	-30.82M	-34.29M	3.86M	-23.00M
Financing Cash Flow	-73.02M	-50.94M	-50.80M	-129.04M	18.12M

Technogym S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.71
• 50DMA: Positive
• 100DMA: Positive
• 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:TGYM, the sentiment is Positive. The current price of 12.71 is above the 20-day moving average (MA) of 12.37, above the 50-day MA of 12.22, and above the 200-day MA of 10.65, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:TGYM.

Technogym S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPI	78 Outperform	€412.47M	3.98		5.94%	16.92%	―
TGYM	74 Outperform	€2.53B	28.74	23.73%	2.39%	11.50%	18.64%
PHN	66 Neutral	€444.36M	26.87		2.18%	17.78%	63.72%
Sector *	58 Neutral	£4.85B	6.57	-62.36%	101.97%	34.03%	6.31%