Natuzzi SPA (NTZ) AI Stock Analysis

• Market Cap: $25.99M
• Dividend Yield: N/A
• Average Volume (3M): 3.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -4.94%
• EPS Growth: 11.35%
• Country: US
• Employees: 3,205
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.11
• Shares Outstanding: 11,014,609
• 10 Day Avg. Volume: 4,276
• 30 Day Avg. Volume: 3,123
• PEG Ratio: 0.98
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -9.43
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.25
• Enterprise Value/Ebitda: -2.94
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $2.00 ▼(-11.11% Downside)

Natuzzi SPA's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and persistent losses. The bearish technical indicators further weigh on the score, reflecting negative market sentiment. Valuation concerns, including a negative P/E ratio and lack of dividend yield, also contribute to the low score. While the earnings call provided some positive insights, they are insufficient to offset the broader challenges.

Positive Factors

Improved Gross Margin

Improved gross margins indicate better cost management and a favorable sales mix, which can enhance profitability and competitiveness in the luxury furniture market.

Strategic Government Discussions

Engagement with the government could lead to cost reductions and operational efficiencies, strengthening long-term sustainability and market position.

Growth in Contract Trade Division

Expansion in the Contract Trade Division offers new revenue streams and diversification, which can stabilize earnings and support long-term growth.

Negative Factors

Declining Revenues

A significant decline in revenues indicates challenges in maintaining market share and demand, which can pressure profitability and strategic initiatives.

High SG&A Costs

Persistently high SG&A costs can erode margins and limit the company's ability to invest in growth, affecting long-term financial health.

Weak Consumer Confidence

Weak consumer confidence can lead to reduced sales and order intake, challenging revenue growth and market expansion efforts.

Natuzzi SPA Business Overview & Revenue Model

Company Description

Natuzzi SPA (NTZ) is a leading Italian furniture manufacturer renowned for its luxury leather sofas and home furnishings. Established in 1959, the company operates primarily in the high-end furniture sector, specializing in the design and production of a wide range of products, including seating, beds, and accessories. Natuzzi is recognized for its commitment to quality craftsmanship, innovative design, and sustainable practices, serving a global market through a network of retail stores and partnerships with various distributors.

How the Company Makes Money

Natuzzi generates revenue primarily through the sale of its premium furniture products, which include sofas, chairs, and home decor items. The company employs a multi-channel distribution strategy, selling directly to consumers through its branded retail stores, as well as through a network of franchisees and authorized dealers. Key revenue streams include online sales, international exports, and partnerships with major retailers. Additionally, Natuzzi benefits from its strong brand reputation and customer loyalty, which help drive sales. The company also focuses on expanding its presence in emerging markets and enhancing its product offerings to adapt to changing consumer preferences, further contributing to its earnings.

Natuzzi SPA Financial Statement Overview

Summary

Natuzzi SPA faces significant financial challenges, with declining revenues and persistent losses impacting its overall financial health. The balance sheet shows high leverage and decreasing equity, which could exacerbate financial stress. Cash flow issues further limit the company's ability to invest in growth or manage debt efficiently. Overall, the company needs strategic restructuring to improve its financial standing.

Income Statement

Natuzzi SPA's revenue has been declining from $468.5M in 2022 to $318.8M in 2024, indicating a significant revenue contraction. The company has reported negative EBIT and net income for recent years, reflecting operational losses and challenges in achieving profitability. Gross profit margins have also decreased, indicating pressures on cost management. The consistent negative net profit margin and EBIT margin highlight ongoing profitability struggles.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating higher financial leverage, which poses a risk given the company's profitability issues. Equity has decreased from 2023 to 2024, reducing financial stability. However, the equity ratio remains moderate, suggesting some degree of asset backing. The decline in total assets and equity over the years flags potential liquidity issues.

Cash Flow

The company's cash flow statement reveals negative free cash flow in recent years, indicating insufficient cash generation to cover capital expenditures. Operating cash flow has also diminished, reflecting reduced cash generation from core operations. The weak operating cash flow to net income ratio further highlights challenges in converting income to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	312.40M	318.80M	328.62M	468.49M	427.38M	328.34M
Gross Profit	111.10M	115.70M	112.86M	164.33M	153.80M	102.00M
EBITDA	-9.36M	14.33M	14.41M	31.68M	34.86M	9.56M
Net Income	-17.45M	-15.15M	-16.07M	-540.00K	3.58M	-24.68M
Balance Sheet
Total Assets	313.60M	319.02M	338.35M	368.60M	390.00M	356.00M
Cash, Cash Equivalents and Short-Term Investments	22.50M	20.32M	33.61M	54.48M	53.47M	48.19M
Total Debt	0.00	99.80M	102.51M	98.39M	110.72M	100.83M
Total Liabilities	260.30M	260.82M	265.06M	276.00M	306.20M	280.70M
Stockholders Equity	49.00M	54.01M	68.94M	87.90M	82.30M	74.30M
Cash Flow
Free Cash Flow	-4.60M	-3.56M	-3.99M	13.65M	-1.29M	11.65M
Operating Cash Flow	2.22M	1.88M	6.12M	21.88M	2.38M	13.59M
Investing Cash Flow	2.87M	-4.60M	-10.71M	-3.39M	6.88M	12.10K
Financing Cash Flow	-8.04M	-13.33M	-15.42M	-17.97M	―	-5.19M

Natuzzi SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTZ, the sentiment is Negative. The current price of 2.25 is below the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.66, and below the 200-day MA of 3.32, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 13.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTZ.

Natuzzi SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.54B	17.19	8.82%	2.39%	1.78%	-25.36%
FLXS	75 Outperform	$210.89M	9.62	14.28%	1.77%	6.00%	64.58%
BSET	66 Neutral	$145.57M	18.77	4.70%	4.59%	-2.74%	―
ETD	66 Neutral	$581.19M	12.37	9.96%	7.86%	-4.61%	-25.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HOFT	53 Neutral	$121.68M	-4.00	-11.27%	7.20%	-12.09%	-204.66%
NTZ	44 Neutral	$25.99M	-1.25	-39.99%	―	-4.94%	11.35%

Natuzzi SPA Corporate Events

Natuzzi Reports Q3 2025 Financial Results Amidst Restructuring Efforts

Natuzzi S.p.A. reported its financial results for the third quarter of 2025, showing a slight decrease in total net sales to €74.4 million compared to the previous year. Despite a challenging business environment marked by geopolitical and macroeconomic uncertainties, the company improved its gross margin to 36.0% due to a better sales mix and cost savings. However, Natuzzi continues to face operational challenges, including high industrial labor costs and weak consumer confidence, which are affecting sales and order intake. The company is actively seeking a new CEO to lead its restructuring efforts and is focused on optimizing its cost structure and enhancing its product offerings to improve profitability and market positioning.

Natuzzi S.p.A. to Release Q3 and Nine-Month Financial Results

On December 15, 2025, Natuzzi S.p.A. announced it will release its unaudited financial results for the third quarter and first nine months of 2025 on December 16, 2025, after the NYSE closes. The company will hold a conference call on December 17, 2025, to discuss these results, potentially impacting investor insights and market positioning.

Natuzzi S.p.A. Reports Q2 2025 Financial Results Amid Restructuring Efforts

Natuzzi S.p.A. reported a decline in financial performance for the second quarter of 2025, with net sales dropping to €78.3 million, a 7.2% decrease from the previous year. The company faced challenges due to geopolitical instability, weak consumer confidence, and trade tensions, impacting its operations and cash flow. In response, Natuzzi is implementing a comprehensive restructuring plan aimed at reducing fixed costs, optimizing production, and strengthening its capital structure. The plan includes divesting non-strategic assets, outsourcing low-value activities, and enhancing its retail and trade business. Despite the current challenges, Natuzzi is optimistic about future growth opportunities, particularly in emerging markets, and is actively seeking a new CEO to lead its turnaround strategy.

Natuzzi S.p.A. Releases 2025 Mid-Year Financial Results

On November 19, 2025, Natuzzi S.p.A. announced the release of its unaudited financial results for the second quarter and first half of 2025, scheduled for the same day after the NYSE closes. The company will hold a conference call on November 20, 2025, to discuss these results, offering stakeholders insights into its financial performance and strategic positioning.