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Natuzzi S.p.a. (NTZ)
NYSE:NTZ
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Natuzzi SPA
(NYSE:NTZ)
Rating:47Neutral
Price Target:
$3.00
▼(-13.79% Downside)
Natuzzi SPA (NTZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.12M
Dividend YieldN/A
Average Volume (3M)6.25K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth-5.41%
EPS Growth-21.60%
CountryUS
Employees3,205
SectorConsumer Cyclical
Sector Strength83
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)N/A
Shares Outstanding11,014,609
10 Day Avg. Volume2,667
30 Day Avg. Volume6,247
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside-13.79% Downside
Rating ConsensusHold
Number of Analyst Covering1
Natuzzi SPA Business Overview & Revenue Model
Company DescriptionNatuzzi S.p.A. engages in the design, manufacture, and marketing of leather and fabric upholstered furniture through its own and franchised stores worldwide. It operates through two segments, Natuzzi Brand and Private Label. The company's products primarily include stationary furniture, such as sofas, loveseats, and armchairs; sectional furniture; motion furniture; sofa beds; occasional chairs, including recliners and massage chairs; home furnishing accessories, including coffee tables, lamps, rugs, and wall units; and home accessories, which include vases, mirrors, magazines racks, trays, and decorative objects. It also sells polyurethane foam and leather by-products. As of December 31, 2021, it operated 253 Natuzzi Italia stores; 72 Divani&Divani by Natuzzi stores; and 326 Natuzzi Editions stores. The company was formerly known as Industrie Natuzzi S.p.A. and changed its name to Natuzzi S.p.A. in June 2002. Natuzzi S.p.A. was incorporated in 1959 and is headquartered in Santeramo in Colle, Italy.
How the Company Makes MoneyNatuzzi generates revenue through multiple channels, primarily focusing on the sale of its upholstered furniture products. The company operates a direct-to-consumer sales model through its retail stores and an extensive network of authorized dealers and franchisees worldwide. Key revenue streams include the sale of sofas, chairs, and other living room furniture, as well as complementary home decor items. Additionally, Natuzzi benefits from strategic partnerships with retailers and designers that enhance its market reach. The company also invests in marketing and branding initiatives to strengthen its presence in the luxury furniture market, further driving sales and profitability.
Natuzzi SPA Earnings Call Summary
Earnings Call Date:Jul 02, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Sep 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted efforts in improving cash position and operational efficiencies, with new collections and enhanced retail analytics showing positive signs. However, these were offset by revenue declines, reduced gross margins, increased financial costs, and challenging market conditions.Q1-2025 Updates
Positive Updates
Cash Position Improvement
The company closed the quarter with EUR 22.2 million in cash, up from EUR 20 million at the end of the previous year, aided by the completion of the High Point transaction.
Introduction of New Collections
Natuzzi introduced new collections including Feelwell, Dolce Vita, and Neo Heritage at the Salone del Mobile Fair in Milan, marking their return after a five-year absence.
Operational Cost Savings
A reduction in industrial costs was achieved due to the closure of the Shanghai plant and the move to a new plant, resulting in a EUR 0.5 million savings.
Improved Retail Analytics
The company implemented a robust retail analytics platform, Power BI, to monitor store performance and optimize operations, showing early signs of improvement in conversion rates and average ticket sizes.
Negative Updates
Revenue Decline
The quarter closed with EUR 78.1 million in revenue, down 7.6% from the previous year, due to challenging market conditions.
Gross Margin Reduction
Gross margin dropped to 34.1% from 36.9% in the previous quarter, primarily due to the transition of production from China to Italy.
Increase in Financial Costs
Net financial costs increased to EUR 2.9 million from EUR 2.2 million the previous year, largely due to currency movements.
Market Challenges
The company faced difficult market conditions exacerbated by U.S. trade duties, the Russia-Ukraine conflict, and tensions in the Middle East.
Company Guidance
During the Natuzzi 2025 First Quarter Financial Results call, the company reported a revenue of EUR 78.1 million, a 7.6% decrease from the previous year, and a gross margin of 34.1%, down from 36.9% in the prior quarter. The operating loss was EUR 0.8 million, with net financial costs of EUR 2.9 million, up from EUR 2.2 million due to currency volatility. Despite challenges, Natuzzi invested EUR 2 million primarily in factory improvements and closed the quarter with EUR 22.2 million in cash, up from EUR 20 million. The company is focused on improving margins and cost management while enhancing its retail operations through data-driven insights and expanding its Trade and Contract division, with promising early results in market segments like hospitality and residential projects.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.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.45
Neutral
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.50
Neutral
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.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 318.80M | 328.62M | 468.50M | 427.40M | 328.30M |
| Gross Profit | 115.70M | 120.36M | 164.30M | 153.80M | 103.10M |
| EBITDA | 14.33M | 14.41M | 31.68M | 8.80M | 9.56M |
| Net Income | -15.15M | -16.07M | 1.30M | 3.58M | -24.90M |
Balance Sheet | |||||
| Total Assets | 319.02M | 338.35M | 368.60M | 390.00M | 356.00M |
| Cash, Cash Equivalents and Short-Term Investments | 20.32M | 33.61M | 54.48M | 53.47M | 48.19M |
| Total Debt | 99.80M | 102.51M | 98.39M | 110.72M | 100.83M |
| Total Liabilities | 260.82M | 265.06M | 276.00M | 306.20M | 280.70M |
| Stockholders Equity | 54.01M | 68.94M | 87.90M | 82.30M | 74.30M |
Cash Flow | |||||
| Free Cash Flow | -5.41M | -8.61M | 9.09M | -4.49M | 9.43M |
| Operating Cash Flow | 1.72M | 3.21M | 18.70M | 500.00K | 12.30M |
| Investing Cash Flow | -4.32M | -7.88M | -4.70M | 7.00M | 2.30M |
| Financing Cash Flow | -12.76M | -15.70M | -13.50M | -2.00M | -5.60M |
Natuzzi SPA Technical Analysis
Positive
3.48
Price Trends
2.99
Positive
3.44
Negative
4.06
Negative
Market Momentum
0.06
Negative
62.70
Neutral
65.57
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 3.48 is above the 20-day moving average (MA) of 2.90, above the 50-day MA of 2.99, and below the 200-day MA of 4.06, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 65.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTZ.
Natuzzi SPA Risk Analysis
Natuzzi SPA disclosed 25 risk factors in its most recent earnings report. Natuzzi SPA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Natuzzi SPA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $769.36M | 15.02 | 10.69% | 6.32% | -4.89% | -19.26% | |
72 Outperform | $246.86M | 13.04 | 12.67% | 1.47% | 6.86% | 88.42% | |
64 Neutral | $1.49B | 16.57 | 9.09% | 2.43% | 2.18% | -22.35% | |
61 Neutral | $17.97B | 12.87 | -5.30% | 2.97% | 1.26% | -14.45% | |
58 Neutral | $146.33M | 59.21 | 1.46% | 4.76% | -7.22% | ― | |
58 Neutral | $1.44B | 45.68 | -2.77% | 3.50% | 1.14% | -149.26% | |
47 Neutral | $37.12M | ― | -30.18% | ― | -5.41% | -21.60% |
* Consumer Cyclical Sector Average
Performance Comparison
NTZ
Natuzzi SPA
3.48
-0.52
-13.00%
BSET
Bassett Furniture
16.80
4.20
33.33%
ETD
Ethan Allen
30.34
3.39
12.58%
FLXS
Flexsteel
48.44
9.96
25.88%
MLKN
MillerKnoll
21.44
-4.04
-15.86%
LZB
La-Z-Boy Incorporated
36.16
-1.38
-3.68%
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.