Natuzzi SPA (NTZ) AI Stock Analysis

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Natuzzi SPA

(NYSE:NTZ)

Rating:41Neutral

Price Target:

$2.50

▼(-6.72% Downside)

Natuzzi SPA is facing significant financial difficulties, with declining revenues and persistent losses. Technical indicators point to bearish momentum, and valuation metrics suggest ongoing profitability challenges. While there are some strategic efforts to improve operations, they are currently overshadowed by the company's financial struggles and external pressures.

Natuzzi SPA (NTZ) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$29.52M

Dividend YieldN/A

Average Volume (3M)18.18K

Price to Earnings (P/E)―

Beta (1Y)1.08

Revenue Growth-5.41%

EPS Growth-21.60%

CountryUS

Employees3,205

SectorConsumer Cyclical

Sector Strength73

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)N/A

Shares Outstanding11,014,609

10 Day Avg. Volume11,309

30 Day Avg. Volume18,181

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

$2.50

Price Target Upside-6.72% Downside

Rating ConsensusHold

Number of Analyst Covering1

Natuzzi SPA Business Overview & Revenue Model

Company DescriptionNatuzzi SPA (NTZ) is an Italian company renowned for its high-quality furniture, particularly in the upholstery sector. Founded in 1959, the company specializes in the design, manufacturing, and distribution of premium furniture products, including sofas, armchairs, and home accessories. Natuzzi operates primarily in the luxury segment of the furniture market and has established a strong brand presence across various international markets, focusing on innovation and craftsmanship in its product lines.

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: -24.93%|

Next Earnings Date:Sep 26, 2025

Earnings Call Sentiment Negative

The earnings call highlights some positive developments, such as improved cash position and advancements in retail technology and the Contract Division. However, these are overshadowed by significant challenges, including a decline in revenue and gross margin, an operating loss, and increased financial costs due to external market factors.

Q1-2025 Updates

Positive Updates

Improved Cash Position

Closed the quarter with EUR 22.2 million in cash, slightly above the EUR 20 million at the end of the previous year, aided by the completion of the High Point transaction.

Retail Technology Advancements

Implemented Power BI platform to monitor store performance, focusing on key indicators such as foot traffic and conversion rate, leading to improved retail analytics and data-driven decision-making.

Expansion in Contract Division

Positive early signs in the Contract Division, leveraging global retail networks for bespoke solutions in hospitality and residential projects, with significant growth potential.

Negative Updates

Revenue Decline

Quarterly revenue down by 7.6% from the previous year, impacted by challenging market conditions and external factors such as U.S. trade duties and geopolitical tensions.

Decrease in Gross Margin

Gross margin decreased to 34.1% from 36.9% in the previous quarter, primarily due to the transition of production from China to Italy and the introduction of U.S. trade duties.

Operating Loss

Operating loss of EUR 0.8 million recorded in the quarter, attributed to lower revenue and decreased gross margin.

Increased Financial Costs

Net financial costs rose to EUR 2.9 million from EUR 2.2 million in the previous year, mainly due to unfavorable currency movements.

Company Guidance

During the first quarter of fiscal year 2025, Natuzzi reported a revenue of EUR 78.1 million, marking a 7.6% decline compared to the previous year, attributed to challenging market conditions and a planned production shift from China to Italy. The gross margin decreased to 34.1% from 36.9% in the prior quarter, primarily due to this transition. The company posted an operating loss of EUR 0.8 million, while net financial costs rose to EUR 2.9 million from EUR 2.2 million, influenced by currency fluctuations. Despite these challenges, Natuzzi invested approximately EUR 2 million, primarily in its factory operations, and closed the quarter with EUR 22.2 million in cash, aided by a completed transaction in High Point. The company highlighted its strategy to improve its commercial performance by enhancing retail analytics, optimizing store performance, and focusing on the trade and contract division, with early signs of growth in various regions.

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

Neutral

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

Neutral

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

Negative

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	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

Technical Analysis Sentiment

Negative

Last Price2.68

Price Trends

50DMA

3.35

Negative

100DMA

3.74

Negative

200DMA

4.17

Negative

Market Momentum

MACD

-0.17

Negative

RSI

40.50

Neutral

STOCH

22.86

Neutral

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 2.68 is below the 20-day moving average (MA) of 2.77, below the 50-day MA of 3.35, and below the 200-day MA of 4.17, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
FLXS	77 Outperform	$180.71M	13.49	9.48%	2.07%	7.24%	-9.51%
ETD	74 Outperform	$744.08M	14.54	10.69%	6.70%	-4.89%	―
LZB	70 Outperform	$1.49B	15.39	9.84%	2.38%	3.04%	-16.49%
Sector *	61 Neutral	$16.98B	10.44	-7.45%	3.24%	1.51%	-15.34%
MLKN	56 Neutral	$1.35B	45.68	-2.77%	3.77%	1.14%	-149.26%
BSET	54 Neutral	$143.03M	57.88	1.46%	4.86%	-7.22%	―
NTZ	41 Neutral	$29.52M	―	-30.18%	―	-5.41%	-21.60%

* Consumer Cyclical Sector Average

Performance Comparison

NTZ

Natuzzi SPA

2.68

-1.58

-37.09%

BSET

Bassett Furniture

16.46

4.46

37.17%

ETD

Ethan Allen

29.26

1.51

5.44%

FLXS

Flexsteel

34.27

0.41

1.21%

MLKN

MillerKnoll

19.92

-6.32

-24.09%

LZB

La-Z-Boy Incorporated

36.19

-3.78

-9.46%

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.Date of analysis: Jul 16, 2025