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

• Market Cap: €3.28B
• Dividend Yield: 1.84%
• Average Volume (3M): 212.94K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.72
• Revenue Growth: 13.97%
• EPS Growth: 26.77%
• Country: IT
• Employees: 2,337
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.20
• Shares Outstanding: 201,327,500
• 10 Day Avg. Volume: 204,897
• 30 Day Avg. Volume: 212,935
• PEG Ratio: 1.26
• Price to Book (P/B): 5.49
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 18.28
• 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: €16.47
• Price Target Upside: 1.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €17.50 ▲(7.49% Upside)

Technogym S.p.A. receives a solid overall stock score driven primarily by its strong financial performance, characterized by robust growth, profitability, and financial stability. The technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. The valuation suggests the stock may be overvalued, which tempers the overall score. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Technogym's strong revenue growth indicates a successful expansion strategy and increased market demand, supporting long-term business sustainability.

Balance Sheet Health

Prudent leverage practices and a strong equity position provide Technogym with financial stability and flexibility to invest in growth opportunities.

Cash Flow Management

Effective capital expenditure management enhances Technogym's ability to generate cash, supporting reinvestment and shareholder returns.

Negative Factors

Operational Efficiency

Moderate EBIT and EBITDA growth suggest potential inefficiencies, which could limit margin expansion and profitability improvements.

Gross Profit Margin

Despite improvement, a lower gross margin than previous levels may indicate rising costs or pricing pressures, affecting long-term profitability.

Free Cash Flow Conversion

While cash flow metrics are positive, the conversion rate suggests room for improvement in efficiently turning net income into free cash flow.

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

Company Description

Technogym S.p.A. (TGYM) is an Italian company specializing in the design and manufacture of fitness equipment and digital solutions for wellness and physical fitness. Founded in 1983, Technogym operates in the health and fitness sector, providing products such as cardiovascular machines, strength training equipment, and wellness software for both professional and home use. The company is known for its innovation in fitness technology and has established a global presence, serving gyms, hotels, and wellness centers worldwide.

How the Company Makes Money

Technogym generates revenue through multiple streams, primarily from the sales of fitness equipment and digital wellness solutions. Key revenue streams include the direct sale of cardio and strength equipment to gyms, fitness centers, and individual consumers. Additionally, Technogym offers subscription-based services for its digital platforms, which provide personalized training programs and wellness tracking. The company has established significant partnerships with various fitness and wellness facilities, enhancing its market reach and brand recognition. Furthermore, Technogym engages in B2B sales, supplying equipment to corporate wellness programs and hospitality sectors, which contribute substantially to its overall earnings.

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 an impressive revenue growth trajectory and strong profitability margins, although there is room for operational efficiency improvements. Financial stability is excellent, marked by low leverage and strong equity. Cash flow management is effective, with opportunities for enhancing free cash flow conversion. Overall, Technogym's financial health is solid, offering a stable foundation for future growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	956.70M	901.29M	808.09M	719.02M	609.74M	508.34M
Gross Profit	403.02M	373.50M	354.06M	248.06M	206.10M	175.14M
EBITDA	195.18M	177.41M	144.18M	123.78M	116.27M	93.19M
Net Income	96.72M	87.04M	73.64M	63.59M	63.06M	36.00M
Balance Sheet
Total Assets	768.56M	904.13M	818.31M	786.21M	763.09M	683.99M
Cash, Cash Equivalents and Short-Term Investments	166.24M	268.71M	224.73M	205.36M	174.31M	202.06M
Total Debt	82.22M	70.82M	65.90M	103.85M	131.43M	126.45M
Total Liabilities	504.90M	517.34M	454.60M	440.28M	451.53M	393.44M
Stockholders Equity	258.82M	379.00M	354.54M	343.92M	309.84M	288.17M
Cash Flow
Free Cash Flow	131.85M	113.85M	70.98M	79.46M	67.75M	73.20M
Operating Cash Flow	160.32M	155.41M	106.82M	114.42M	95.44M	97.60M
Investing Cash Flow	-49.25M	-38.61M	-30.82M	-34.29M	3.86M	-23.00M
Financing Cash Flow	-143.85M	-73.02M	-50.94M	-50.80M	-127.27M	18.12M

Technogym S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 16.28 is above the 20-day moving average (MA) of 16.15, above the 50-day MA of 15.53, and above the 200-day MA of 13.29, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 47.53 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
PHN	74 Outperform	€517.93M	29.43	―	1.87%	12.82%	7.36%
TGYM	72 Outperform	€3.28B	33.73	33.20%	1.84%	13.97%	26.77%
GPI	63 Neutral	€470.08M	21.57	―	5.21%	11.25%	-76.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%