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PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis

BIT:PIRC - Euronext Milan - IT0005278236 - Common Stock - Currency: EUR

5.39  +0.18 (+3.38%)

Fundamental Rating

5

Overall PIRC gets a fundamental rating of 5 out of 10. We evaluated PIRC against 29 industry peers in the Automobile Components industry. While PIRC has a great profitability rating, there are some minor concerns on its financial health. PIRC is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

PIRC had positive earnings in the past year.
In the past year PIRC had a positive cash flow from operations.
PIRC had positive earnings in 4 of the past 5 years.
Of the past 5 years PIRC 4 years had a positive operating cash flow.
PIRC.MI Yearly Net Income VS EBIT VS OCF VS FCFPIRC.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

1.2 Ratios

PIRC has a Return On Assets of 5.21%. This is amongst the best in the industry. PIRC outperforms 89.66% of its industry peers.
Looking at the Return On Equity, with a value of 12.35%, PIRC is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.55%, PIRC belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PIRC is in line with the industry average of 6.41%.
The 3 year average ROIC (5.42%) for PIRC is below the current ROIC(9.55%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.21%
ROE 12.35%
ROIC 9.55%
ROA(3y)2.91%
ROA(5y)2.42%
ROE(3y)7.58%
ROE(5y)6.54%
ROIC(3y)5.42%
ROIC(5y)4.69%
PIRC.MI Yearly ROA, ROE, ROICPIRC.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 50 100 150

1.3 Margins

The Profit Margin of PIRC (6.81%) is better than 89.66% of its industry peers.
PIRC's Profit Margin has declined in the last couple of years.
The Operating Margin of PIRC (13.19%) is better than 100.00% of its industry peers.
PIRC's Operating Margin has declined in the last couple of years.
The Gross Margin of PIRC (63.93%) is better than 93.10% of its industry peers.
PIRC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.19%
PM (TTM) 6.81%
GM 63.93%
OM growth 3Y32.07%
OM growth 5Y-2.4%
PM growth 3Y118.33%
PM growth 5Y-2.81%
GM growth 3Y10.9%
GM growth 5Y4.62%
PIRC.MI Yearly Profit, Operating, Gross MarginsPIRC.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PIRC is creating some value.
PIRC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
PIRC.MI Yearly Shares OutstandingPIRC.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
PIRC.MI Yearly Total Debt VS Total AssetsPIRC.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

PIRC has an Altman-Z score of 2.11. This is not the best score and indicates that PIRC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.11, PIRC is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
PIRC has a debt to FCF ratio of 4.06. This is a neutral value as PIRC would need 4.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.06, PIRC belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that PIRC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, PIRC perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 4.06
Altman-Z 2.11
ROIC/WACC1.49
WACC6.42%
PIRC.MI Yearly LT Debt VS Equity VS FCFPIRC.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 1.48 indicates that PIRC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, PIRC is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
PIRC has a Quick Ratio of 1.48. This is a bad value and indicates that PIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.96, PIRC perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.48
Quick Ratio 0.96
PIRC.MI Yearly Current Assets VS Current LiabilitesPIRC.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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3

3. Growth

3.1 Past

The earnings per share for PIRC have decreased by -1.69% in the last year.
Measured over the past years, PIRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.65% on average per year.
EPS 1Y (TTM)-1.69%
EPS 3Y9.65%
EPS 5YN/A
EPS Q2Q%-7.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.64%

3.2 Future

PIRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.36% yearly.
PIRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.29% yearly.
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year2.91%
Revenue Next 2Y3.27%
Revenue Next 3Y3.62%
Revenue Next 5Y1.29%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
PIRC.MI Yearly Revenue VS EstimatesPIRC.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
PIRC.MI Yearly EPS VS EstimatesPIRC.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.29, which indicates a very decent valuation of PIRC.
The rest of the industry has a similar Price/Earnings ratio as PIRC.
The average S&P500 Price/Earnings ratio is at 28.79. PIRC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.97 indicates a reasonable valuation of PIRC.
The rest of the industry has a similar Price/Forward Earnings ratio as PIRC.
PIRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.29
Fwd PE 8.97
PIRC.MI Price Earnings VS Forward Price EarningsPIRC.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as PIRC.
PIRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PIRC is cheaper than 62.07% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.45
EV/EBITDA 4.2
PIRC.MI Per share dataPIRC.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PIRC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y9.11%
EPS Next 3Y9.36%

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6

5. Dividend

5.1 Amount

PIRC has a Yearly Dividend Yield of 3.80%.
Compared to an average industry Dividend Yield of 5.69, PIRC has a dividend in line with its industry peers.
PIRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
Industry RankSector Rank
Dividend Yield 3.8%

5.2 History

The dividend of PIRC is nicely growing with an annual growth rate of 92.65%!
Dividend Growth(5Y)92.65%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

PIRC pays out 29.93% of its income as dividend. This is a sustainable payout ratio.
PIRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.93%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
PIRC.MI Yearly Income VS Free CF VS DividendPIRC.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B
PIRC.MI Dividend Payout.PIRC.MI Dividend Payout, showing the Payout Ratio.PIRC.MI Dividend Payout.PayoutRetained Earnings

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PIRELLI & C SPA

BIT:PIRC (4/25/2025, 7:00:00 PM)

5.39

+0.18 (+3.38%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)05-14 2025-05-14
Inst Owners13.15%
Inst Owner ChangeN/A
Ins Owners25.7%
Ins Owner ChangeN/A
Market Cap5.39B
Analysts80.95
Price Target6.7 (24.3%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.8%
Yearly Dividend0.22
Dividend Growth(5Y)92.65%
DP29.93%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.73%
Min EPS beat(2)8.18%
Max EPS beat(2)39.27%
EPS beat(4)4
Avg EPS beat(4)21.81%
Min EPS beat(4)8.18%
Max EPS beat(4)39.27%
EPS beat(8)8
Avg EPS beat(8)24.67%
EPS beat(12)11
Avg EPS beat(12)28.11%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)-0.47%
Revenue beat(8)2
Avg Revenue beat(8)14.41%
Revenue beat(12)6
Avg Revenue beat(12)27.44%
Revenue beat(16)10
Avg Revenue beat(16)34.4%
PT rev (1m)0.32%
PT rev (3m)4.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
Industry RankSector Rank
PE 9.29
Fwd PE 8.97
P/S 0.53
P/FCF 5.45
P/OCF 3.81
P/B 0.97
P/tB 13.97
EV/EBITDA 4.2
EPS(TTM)0.58
EY10.76%
EPS(NY)0.6
Fwd EY11.15%
FCF(TTM)0.99
FCFY18.33%
OCF(TTM)1.41
OCFY26.22%
SpS10.09
BVpS5.57
TBVpS0.39
PEG (NY)2.56
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.21%
ROE 12.35%
ROCE 12.58%
ROIC 9.55%
ROICexc 10.49%
ROICexgc 22.69%
OM 13.19%
PM (TTM) 6.81%
GM 63.93%
FCFM 9.79%
ROA(3y)2.91%
ROA(5y)2.42%
ROE(3y)7.58%
ROE(5y)6.54%
ROIC(3y)5.42%
ROIC(5y)4.69%
ROICexc(3y)6.43%
ROICexc(5y)5.59%
ROICexgc(3y)16.59%
ROICexgc(5y)14.86%
ROCE(3y)7.21%
ROCE(5y)6.23%
ROICexcg growth 3Y46.63%
ROICexcg growth 5Y-1.38%
ROICexc growth 3Y52.18%
ROICexc growth 5Y2.29%
OM growth 3Y32.07%
OM growth 5Y-2.4%
PM growth 3Y118.33%
PM growth 5Y-2.81%
GM growth 3Y10.9%
GM growth 5Y4.62%
F-Score5
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 4.06
Debt/EBITDA 1.84
Cap/Depr 71.27%
Cap/Sales 4.21%
Interest Coverage 250
Cash Conversion 73.3%
Profit Quality 143.8%
Current Ratio 1.48
Quick Ratio 0.96
Altman-Z 2.11
F-Score5
WACC6.42%
ROIC/WACC1.49
Cap/Depr(3y)60.81%
Cap/Depr(5y)61.61%
Cap/Sales(3y)5.48%
Cap/Sales(5y)5.99%
Profit Quality(3y)200%
Profit Quality(5y)390.76%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.69%
EPS 3Y9.65%
EPS 5YN/A
EPS Q2Q%-7.14%
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.64%
Revenue Next Year2.91%
Revenue Next 2Y3.27%
Revenue Next 3Y3.62%
Revenue Next 5Y1.29%
EBIT growth 1Y3.69%
EBIT growth 3Y52.7%
EBIT growth 5Y2.55%
EBIT Next Year58.15%
EBIT Next 3Y20.12%
EBIT Next 5Y10.45%
FCF growth 1Y29.03%
FCF growth 3Y38.6%
FCF growth 5Y33.61%
OCF growth 1Y34.78%
OCF growth 3Y30.04%
OCF growth 5Y14.35%