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

• Market Cap: €2.88B
• Dividend Yield: 2.09%
• Average Volume (3M): 197.84K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.72
• Revenue Growth: 13.97%
• EPS Growth: 26.77%
• Country: IT
• Employees: 2,337
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Leisure
• EPS (TTM): 0.21
• Shares Outstanding: 201,327,500
• 10 Day Avg. Volume: 223,073
• 30 Day Avg. Volume: 197,835
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €13.80
• Price Target Upside: -3.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: €15.50 ▲(7.94% Upside)

Technogym S.p.A. receives a solid score due to strong financial performance, characterized by significant revenue growth and robust profitability. Technical analysis indicates bullish momentum, though current overbought conditions suggest caution. Valuation metrics highlight a high P/E ratio, which could limit upside potential. Overall, the company is fundamentally strong but may face short-term volatility due to technical indicators.

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 global company in the wellness and fitness sector, specializing in the design and manufacturing of high-quality fitness equipment and digital solutions. Founded in 1983 and headquartered in Cesena, Italy, Technogym offers a wide range of products including strength training machines, cardiovascular equipment, and connected fitness solutions tailored for both fitness enthusiasts and professional facilities. The company also provides wellness services and digital platforms that enhance user experience and promote a healthy lifestyle.

How the Company Makes Money

Technogym generates revenue through multiple streams, primarily from the sale of fitness equipment to gyms, hotels, wellness centers, and individual consumers. The company also earns significant income from its digital solutions, including subscription-based services for fitness tracking and personalized training programs. Additionally, Technogym has established partnerships with various businesses and fitness influencers, which help to enhance brand visibility and drive sales. The company's commitment to innovation and quality allows it to maintain premium pricing, further contributing to its profitability.

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: 14.36
• 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:TGYM, the sentiment is Positive. The current price of 14.36 is above the 20-day moving average (MA) of 13.34, above the 50-day MA of 12.69, and above the 200-day MA of 10.98, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 76.13 is Negative, neither overbought nor oversold. The STOCH value of 91.40 is Negative, 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	79 Outperform	€479.29M	4.62		5.12%	16.92%	―
PHN	73 Outperform	€456.94M	27.63		2.14%	17.78%	63.72%
TGYM	71 Outperform	€2.88B	29.67	33.20%	2.09%	13.97%	26.77%
Sector *	61 Neutral	$17.22B	11.53	-5.99%	3.08%	1.40%	-15.51%