Natuzzi SPA (NTZ) AI Stock Analysis

• Market Cap: $35.11M
• Dividend Yield: N/A
• Average Volume (3M): 3.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• 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: -14.33
• Enterprise Value/Market Cap: 0.20
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: -0.76
• 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: 50 Neutral
• Price Target: $3.00 ▲(33.33% Upside)

The score is held back primarily by deteriorating financial performance (shrinking revenue, ongoing losses, negative free cash flow, and elevated leverage). Technicals are comparatively supportive with price above major moving averages and moderate positive momentum, while valuation remains challenged due to loss-making results. Earnings-call commentary is mixed, with margin improvement and growth initiatives tempered by weak demand, high fixed costs, and restructuring/leadership uncertainty.

Positive Factors

Brand & Multi-channel Reach

Natuzzi's established premium brand and diversified distribution (branded stores, franchisees, dealers, online and export channels) provide durable pricing power and customer loyalty. This multi-channel footprint supports resilient revenue streams and expansion into emerging markets over the medium term.

Improving Gross Margin

An improved gross margin driven by a higher share of Natuzzi Italia (higher-margin) sales indicates the business can lift profitability through mix shifts. If sustained, this structural margin improvement helps offset higher labor costs and supports path to operating leverage despite weak top-line trends.

Contract Trade Division Opportunity

Development of the Contract Trade Division offers a strategic, potentially recurring revenue stream that diversifies reliance on retail foot traffic. Institutional and B2B contracts can scale with lower marketing intensity and improve utilization of production capacity, supporting medium-term revenue stability.

Negative Factors

Sharp Revenue Contraction

A sustained, material decline in revenue reduces economies of scale and amplifies fixed-cost pressure, undermining margins and profitability potential. Restoring top-line growth is critical; without it, restructuring and cost cuts may be insufficient to return the business to sustainable profitability.

Negative Free Cash Flow

Persistent negative free cash flow constrains the firm's ability to fund capex, restructure operations, reduce debt, or invest in growth without external financing or asset sales. This structural cash generation weakness increases refinancing and liquidity risk during a multi-quarter turnaround.

Elevated Leverage and Falling Equity

High leverage combined with declining equity raises solvency risk and increases interest burden, limiting strategic flexibility. In a loss-making, cash-constrained environment, elevated debt heightens the likelihood of asset disposals, covenant pressure, or equity dilution that could impede long-term recovery.

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

Financial fundamentals remain weak: revenue fell sharply from $468.5M (2022) to $318.8M (2024), profitability is negative (EBIT and net income losses), and free cash flow is negative, limiting flexibility. Balance sheet leverage is elevated with declining equity, adding risk.

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	-13.48M	-13.33M	-15.42M	-17.97M	-3.48M	-5.19M

Natuzzi SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.25
• 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 NTZ, the sentiment is Positive. The current price of 2.25 is below the 20-day moving average (MA) of 3.00, below the 50-day MA of 2.68, and below the 200-day MA of 3.16, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$1.50B	16.96	8.82%	2.39%	1.78%	-25.36%
FLXS	75 Outperform	$213.78M	9.55	14.28%	1.77%	6.00%	64.58%
ETD	70 Outperform	$583.48M	13.11	9.21%	7.86%	-4.61%	-25.66%
BSET	66 Neutral	$137.23M	17.07	4.70%	4.59%	-2.74%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NTZ	50 Neutral	$35.11M	-1.68	-39.99%	―	-4.94%	11.35%
HOFT	49 Neutral	$143.02M	-4.70	-11.27%	7.20%	-12.09%	-204.66%

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.

The most recent analyst rating on (NTZ) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Natuzzi SPA stock, see the NTZ Stock Forecast page.

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.

The most recent analyst rating on (NTZ) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Natuzzi SPA stock, see the NTZ Stock Forecast page.

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.

The most recent analyst rating on (NTZ) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Natuzzi SPA stock, see the NTZ Stock Forecast page.

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.

The most recent analyst rating on (NTZ) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Natuzzi SPA stock, see the NTZ Stock Forecast page.