Italian Sea Group S.p.A. (TISG) AI Stock Analysis

• Market Cap: €235.05M
• Dividend Yield: 6.03%
• Average Volume (3M): 113.66K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.68
• Revenue Growth: 12.02%
• EPS Growth: -8.17%
• Country: US
• Employees: 657
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.08
• Shares Outstanding: 53,000,000
• 10 Day Avg. Volume: 141,779
• 30 Day Avg. Volume: 113,661
• PEG Ratio: -1.35
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -29.74
• 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: €7.23
• Price Target Upside: 68.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: €4.50 ▲(5.14% Upside)

The score is held back primarily by deteriorating cash generation (negative operating and free cash flow in 2024 and TTM), alongside weaker TTM margins/earnings and higher leverage. These risks are partially offset by attractive valuation (low P/E and high dividend yield) and modestly improving near-term price action versus the 20/50-day averages.

Positive Factors

Multi‑year revenue growth and scale

Sustained expansion from 112.9m to 365.4m (2020–2024) shows the company built meaningful scale and market traction in luxury and commercial builds. Scale supports supplier leverage, capacity to win large bespoke contracts and a foundation for steady revenue even through cyclical periods.

Proven historical cash generation

The company demonstrated strong cash conversion in 2022–2023 with positive OCF and FCF, indicating underlying operational efficiency and effective project execution. That track record implies management know‑how to generate cash when volumes and margins normalize, reducing long‑term execution risk.

Established brand and diversified services

Reputation for craftsmanship plus a mix of custom builds, commercial vessels and refit/maintenance creates recurring service revenue and high barriers to entry in bespoke segments. Diversified offerings and client relationships support steadier demand and cross‑sell opportunities over multi‑year horizons.

Negative Factors

Deteriorating cash generation (negative OCF/FCF)

A shift from positive to materially negative operating and free cash flow raises durable funding and execution concerns. Persistent negative cash reduces ability to fund projects, service debt, or invest in yards, increasing refinancing risk and constraining growth or margin recovery over coming quarters.

Rising leverage and higher debt burden

Leverage nearly doubled in the latest period, increasing interest expense and reducing financial flexibility. With weakened cash flow and tighter margins, higher debt elevates covenant and refinancing risk, constrains capex or strategic investments, and magnifies downside in cyclical demand.

Margin compression and weaker profitability

Substantial margin deterioration signals pricing pressure, cost inflation or execution inefficiencies. Lower EBITDA and net margins reduce return on invested capital and cash flows, limiting resources for reinvestment and raising the risk that competitive positioning and ROE will remain impaired over the medium term.

Italian Sea Group S.p.A. Business Overview & Revenue Model

Company Description

The Italian Sea Group S.p.A. operates in the luxury yachting industry. It is involved in the design, production and marketing of yachts and super yachts, motor, and sailing, made of fiberglass, aluminum and steel that ranges between 17 and over 100 meters under the Admiral, Tecnomar, Perini Navi, and Picchiotti brands. The company also offers refit services with a focus on motor and sailing yachts under the NCA Refit brand. The company was founded in 1942 and is based in Marina di Carrara, Italy. The Italian Sea Group S.p.A. is a subsidiary of GC Holding S.P.A.

How the Company Makes Money

Italian Sea Group S.p.A. generates revenue primarily through the sale of custom-built yachts and superyachts, which are often sold at premium prices due to their bespoke nature and high-quality materials. The company also earns income from the refit and maintenance of existing vessels, providing ongoing services to yacht owners. Additional revenue streams may include partnerships with luxury brands for co-branding opportunities and collaborations, as well as financing options for customers purchasing yachts. The firm benefits from its established reputation and relationships within the maritime industry, which help in acquiring new clients and projects.

Italian Sea Group S.p.A. Financial Statement Overview

Summary

Income statement shows strong multi-year revenue growth, but TTM revenue is down vs 2024 and profitability has weakened materially (net margin ~3.8% TTM vs ~9–10% in 2023–2024; EBITDA margin ~15.2% TTM vs ~21.5% in 2024). Balance sheet leverage increased (debt-to-equity ~0.91 TTM vs ~0.50 in 2024) and ROE cooled (~8.8% TTM). Cash flow is the main drag: operating cash flow and free cash flow are negative in 2024 and worsened in TTM, raising funding/execution risk.

Income Statement

Revenue expanded sharply from 2020–2024 (112.9m to 365.4m), showing strong multi-year demand momentum, but TTM (Trailing-Twelve-Months) revenue fell versus the last annual period (335.1m vs 365.4m) and the TTM growth rate is unusually high, suggesting volatility. Profitability also weakened: net margin declined to ~3.8% in TTM from ~9–10% in 2023–2024, and operating profitability stepped down (EBITDA margin ~15.2% TTM vs ~21.5% in 2024). Strengths are scale built over time and still-positive operating profit, while the key weakness is the recent compression in margins and earnings (TTM net income 12.8m vs 33.9m in 2024).

Balance Sheet

The balance sheet has grown alongside the business (assets up from 123.0m in 2020 to 406.1m in 2024 and 481.8m in TTM), with equity also higher over time (40.2m in 2020 to ~145.0m in 2024/TTM). However, leverage has risen materially in the latest period: debt-to-equity moved to ~0.91 in TTM versus ~0.50 in 2024, reflecting a sizable debt increase (132.6m TTM vs 72.8m in 2024). Returns on equity also cooled to ~8.8% TTM from ~23–28% in 2023–2024, consistent with weaker profitability. Overall: adequate equity base and growth, but higher leverage and reduced returns are notable risks.

Cash Flow

Cash generation has deteriorated meaningfully: operating cash flow turned negative in 2024 (-9.4m) and worsened in TTM (Trailing-Twelve-Months) to -36.9m, with free cash flow also negative (-13.2m in 2024; -38.3m TTM). This is a clear step-down from 2022–2023, when operating cash flow was positive (64.4m in 2022; 25.4m in 2023) and free cash flow was positive (44.5m in 2022; 22.6m in 2023). The main strength is that the company has demonstrated an ability to generate cash in prior years, but the current profile suggests working-capital/investment strain and raises funding risk given the simultaneous increase in debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	335.11M	365.43M	356.09M	291.51M	186.05M	112.95M
Gross Profit	237.52M	155.84M	130.91M	113.10M	68.06M	32.52M
EBITDA	50.85M	78.59M	63.39M	43.57M	26.77M	13.74M
Net Income	12.81M	33.89M	36.91M	24.05M	16.32M	6.24M
Balance Sheet
Total Assets	481.77M	406.06M	377.39M	342.26M	235.07M	122.95M
Cash, Cash Equivalents and Short-Term Investments	61.64M	60.25M	76.41M	81.32M	85.61M	17.94M
Total Debt	132.60M	72.76M	74.53M	91.39M	42.83M	21.79M
Total Liabilities	335.79M	261.09M	246.25M	233.26M	142.19M	82.73M
Stockholders Equity	145.99M	144.96M	131.14M	109.00M	92.89M	40.22M
Cash Flow
Free Cash Flow	-38.26M	-13.21M	22.62M	44.53M	12.98M	15.98M
Operating Cash Flow	-36.92M	-9.43M	25.37M	64.37M	36.75M	27.74M
Investing Cash Flow	-2.20M	20.03M	1.00M	-103.79M	-26.27M	-13.69M
Financing Cash Flow	48.13M	-26.76M	-31.27M	35.13M	57.18M	-1.86M

Italian Sea Group S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TISG, the sentiment is Negative. The current price of 4.28 is below the 20-day moving average (MA) of 4.49, above the 50-day MA of 4.25, and below the 200-day MA of 5.03, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 9.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:TISG.

Italian Sea Group S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SL	68 Neutral	€1.17B	10.86	23.62%	3.34%	9.07%	6.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TISG	59 Neutral	€235.05M	6.94	―	6.03%	12.02%	-8.17%