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Technogym S.p.A. (IT:TGYM)
:TGYM

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

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Technogym S.p.A.

(LSE:TGYM)

Rating:74Outperform
Price Target:
€13.00
▲(10.08%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. (TGYM) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionTechnogym S.p.A. (TGYM) is a leading global provider of fitness equipment and digital solutions for wellness and personal health. Founded in 1983 and headquartered in Cesena, Italy, the company operates in the sectors of fitness, wellness, and sports. Technogym offers a comprehensive range of products including treadmills, exercise bikes, rowing machines, and strength training equipment, as well as digital platforms that provide personalized workout experiences and health management solutions. The company serves a diverse clientele, including gyms, hotels, corporate wellness centers, and private consumers, in over 100 countries worldwide.
How the Company Makes MoneyTechnogym generates revenue through the sale of fitness equipment and digital solutions. Its primary revenue streams include the direct sales of its equipment to commercial and residential clients, subscription-based digital services that offer interactive workout content and wellness apps, and after-sales services such as maintenance and support. The company benefits from partnerships with fitness clubs, hotels, and corporate entities that integrate Technogym products into their wellness offerings. Additionally, Technogym's brand recognition and commitment to innovation and quality contribute significantly 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
80
Positive
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
85
Very Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue901.29M808.09M719.02M609.74M508.34M
Gross Profit373.50M354.06M248.06M206.10M175.14M
EBITDA177.41M144.18M123.78M116.27M83.36M
Net Income87.04M73.64M63.59M63.06M36.00M
Balance Sheet
Total Assets904.13M818.31M786.21M763.09M683.99M
Cash, Cash Equivalents and Short-Term Investments268.71M224.73M225.24M228.14M202.06M
Total Debt70.82M65.90M49.76M86.73M111.41M
Total Liabilities517.34M454.60M440.28M451.53M393.44M
Stockholders Equity379.00M354.54M343.92M309.84M288.17M
Cash Flow
Free Cash Flow113.85M70.98M79.46M67.75M73.20M
Operating Cash Flow155.41M106.82M114.42M95.44M97.60M
Investing Cash Flow-38.61M-30.82M-34.29M3.86M-23.00M
Financing Cash Flow-73.02M-50.94M-50.80M-129.04M18.12M

Technogym S.p.A. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.81
Price Trends
50DMA
11.90
Negative
100DMA
11.22
Positive
200DMA
10.37
Positive
Market Momentum
MACD
0.02
Positive
RSI
42.17
Neutral
STOCH
14.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TGYM, the sentiment is Neutral. The current price of 11.81 is below the 20-day moving average (MA) of 12.21, below the 50-day MA of 11.90, and above the 200-day MA of 10.37, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 14.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:TGYM.

Technogym S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITGPI
74
Outperform
€351.98M3.39
5.73%16.92%
74
Outperform
€2.39B27.1423.73%2.53%11.50%18.64%
ITPHN
66
Neutral
€448.23M27.10
1.85%17.78%63.72%
51
Neutral
$7.50B0.32-61.87%2.27%17.10%1.59%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:TGYM
Technogym S.p.A.
11.81
2.69
29.47%
IT:PHN
PharmaNutra SpA
46.10
-2.00
-4.16%
IT:GPI
GPI SpA
12.18
0.05
0.41%
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: Jun 05, 2025