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Natuzzi S.p.a. (NTZ)
:NTZ
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Natuzzi SPA
(NYSE:NTZ)
Rating:45Neutral
Price Target:
$3.50
▼(-6.91%Downside)
Natuzzi SPA (NTZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.36M
Dividend YieldN/A
Average Volume (3M)3.31K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-2.91%
EPS Growth3.98%
CountryUS
Employees3,205
SectorConsumer Cyclical
Sector Strength59
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-1.50
Shares Outstanding11,014,609
10 Day Avg. Volume587
30 Day Avg. Volume3,312
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)0.90
Price to Sales (P/S)0.00
P/FCF Ratio8.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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:Apr 23, 2025
(Q4-2024)
| % Change Since: 2.73%|
Next Earnings Date:Jun 27, 2025
Earnings Call Sentiment Neutral
The earnings call revealed significant improvements in gross margin and branded sales strategy, highlighting the company's resilience. However, these were counterbalanced by challenges such as a decline in overall sales, operational losses, and production-related backlogs. The sentiment reflects a mixed outlook with ongoing challenges despite strategic progress.Q4-2024 Updates
Positive Updates
Increase in Gross Margin
2024 gross margin closed at 36.3%, improving by 2 percentage points versus 2023 (34.3%) and 29.7% in 2019.
Growth in Directly Operated Store Revenue
Directly operated store revenue reported EUR70.1 million, up 4% versus 2023 and 18% versus 2019.
Successful Branded Sales Strategy
Branded sales reached EUR289 million, representing 93% of total sales, an increase from 80% in 2019.
Restructuring and Cost Management
Reduction of 1,141 people over three years, focusing on enhancing marketing and retail competencies.
Effective Production Reallocation
Relocation of production from Shanghai to Quanjiao in China, and Natuzzi Edition production for North America moved to Europe.
Negative Updates
Decline in Overall Sales
Total sales decreased by 3% to EUR318.8 million compared to the previous year.
Operational Loss
The company posted a loss of EUR6.3 million despite efforts to lower the breakeven point.
Increased Backlog Due to Production Changes
A backlog increase of EUR6.4 million occurred in the last quarter due to production reallocation.
Challenges with Store Closures
Closure of nonperforming stores in Spain, Switzerland, and one Divani&Divani store.
Company Guidance
During the Natuzzi S.p.A. Fourth Quarter and Full Year 2024 financial results call, the company provided comprehensive guidance and insights into its operations and strategic direction. The fiscal year 2024 closed with sales at EUR 318.8 million, a 3% decrease from the previous year, highlighting market volatility. Branded sales contributed EUR 289 million, demonstrating resilience and a strategic shift towards brand retailing, now comprising 93% of total sales compared to 80% in 2019. Gross margin increased to 36.3%, up from 34.3% in 2023, signifying improved sales quality and operational efficiency. The company reported a net loss of EUR 6.3 million, a substantial improvement from EUR 22.5 million losses in 2019, despite a EUR 70 million revenue reduction. Key operational shifts included relocating production from Shanghai to Quanjiao and moving North America-bound Natuzzi Edition production to Europe. The company also reduced its workforce by 26% over three years, aligning resources with strategic priorities. Retail performance was bolstered by a 4% increase in directly operated store sales to EUR 70.1 million, with significant growth in the U.S. market. The call emphasized the transformation from a manufacturing entity to a brand retailer, focusing on enhancing customer experience, merchandising, and digital capabilities to drive future sales growth.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
Neutral
3.76
Price Trends
3.86
Negative
4.28
Negative
4.36
Negative
Market Momentum
-0.09
Positive
49.38
Neutral
48.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTZ, the sentiment is Neutral. The current price of 3.76 is below the 20-day moving average (MA) of 3.89, below the 50-day MA of 3.86, and below the 200-day MA of 4.36, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 48.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $192.90M | 14.40 | 9.48% | 2.19% | 7.24% | -9.51% | |
71 Outperform | $710.00M | 12.38 | 12.09% | 5.58% | -6.32% | -18.35% | |
68 Neutral | $1.55B | 16.15 | 9.84% | 2.34% | 3.04% | -16.49% | |
63 Neutral | $1.34B | 46.64 | 2.28% | 3.79% | -2.68% | -56.16% | |
62 Neutral | $16.72B | 10.85 | -7.48% | 3.11% | 1.66% | -24.52% | |
50 Neutral | $124.12M | ― | -3.83% | 5.61% | -11.78% | -13.89% | |
45 Neutral | $41.36M | ― | -25.01% | ― | -2.91% | 3.98% |
* Consumer Cyclical Sector Average
Performance Comparison
NTZ
Natuzzi SPA
3.76
-1.19
-24.04%
BSET
Bassett Furniture
14.26
1.19
9.10%
ETD
Ethan Allen
27.92
2.33
9.11%
FLXS
Flexsteel
36.58
4.21
13.01%
MLKN
MillerKnoll
19.81
-5.77
-22.56%
LZB
La-Z-Boy Incorporated
37.96
1.91
5.30%
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.