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Natuzzi S.p.a. (NTZ)
NYSE:NTZ
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Natuzzi SPA
(NYSE:NTZ)
Rating:41Neutral
Price Target:
$2.50
▼(-9.09%Downside)
Natuzzi SPA (NTZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.29M
Dividend YieldN/A
Average Volume (3M)14.39K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-5.41%
EPS Growth-21.60%
CountryUS
Employees3,205
SectorConsumer Cyclical
Sector Strength69
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)N/A
Shares Outstanding11,014,609
10 Day Avg. Volume41,420
30 Day Avg. Volume14,392
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.38
Price to Sales (P/S)0.00
P/FCF Ratio-4.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside27.27% Upside
Rating ConsensusHold
Number of Analyst Covering0
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 makes money primarily through the sale of its furniture products, which are distributed globally across its retail network. The company's revenue streams include direct sales through Natuzzi-branded stores and online platforms, as well as wholesale distribution to third-party retailers. Natuzzi also engages in strategic partnerships and collaborations to expand its market presence and enhance brand visibility. Factors contributing to its earnings include its strong brand reputation, a diverse product portfolio, and a focus on design and quality, which drive customer demand and loyalty.
Natuzzi SPA Earnings Call Summary
Earnings Call Date:Jul 02, 2025
(Q1-2025)
| % Change Since: -22.97%|
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
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
Negative
2.75
Price Trends
3.59
Negative
4.04
Negative
4.28
Negative
Market Momentum
-0.25
Positive
36.71
Neutral
53.59
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 2.75 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.59, and below the 200-day MA of 4.28, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 36.71 is Neutral, neither overbought nor oversold. The STOCH value of 53.59 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $195.48M | 14.59 | 9.48% | 2.32% | 7.24% | -9.51% | |
71 Outperform | $736.71M | 12.84 | 12.09% | 6.77% | -6.32% | -18.35% | |
70 Outperform | $1.56B | 16.10 | 9.84% | 2.80% | 3.04% | -16.49% | |
63 Neutral | $1.31B | 45.68 | 2.28% | 4.83% | -2.68% | -56.16% | |
62 Neutral | $16.95B | 10.84 | -7.26% | 3.63% | 1.71% | -25.14% | |
58 Neutral | $161.45M | 65.33 | 1.46% | 5.27% | -7.22% | ― | |
41 Neutral | $30.29M | ― | -30.18% | ― | -5.41% | -21.60% |
* Consumer Cyclical Sector Average
Performance Comparison
NTZ
Natuzzi SPA
2.75
-1.70
-38.20%
BSET
Bassett Furniture
18.58
5.76
44.93%
ETD
Ethan Allen
28.97
1.25
4.51%
FLXS
Flexsteel
37.07
0.78
2.15%
MLKN
MillerKnoll
19.40
-8.57
-30.64%
LZB
La-Z-Boy Incorporated
37.85
-3.47
-8.40%
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.