PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis
BIT:PIRC - Euronext Milan - IT0005278236 - Common Stock - Currency: EUR
Taking everything into account, PIRC scores 6 out of 10 in our fundamental rating. PIRC was compared to 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PIRC had positive earnings in the past year.
PIRC had a positive operating cash flow in the past year.
In the past 5 years PIRC has always been profitable.
PIRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PIRC (5.21%) is better than 89.66% of its industry peers.
PIRC has a Return On Equity of 12.35%. This is in the better half of the industry: PIRC outperforms 79.31% of its industry peers.
The Return On Invested Capital of PIRC (9.55%) is better than 93.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PIRC is in line with the industry average of 6.14%.
The last Return On Invested Capital (9.55%) for PIRC is above the 3 year average (5.42%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
PIRC has a Profit Margin of 6.81%. This is amongst the best in the industry. PIRC outperforms 89.66% of its industry peers.
In the last couple of years the Profit Margin of PIRC has declined.
PIRC has a Operating Margin of 13.19%. This is amongst the best in the industry. PIRC outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of PIRC has declined.
The Gross Margin of PIRC (63.93%) is better than 96.55% of its industry peers.
PIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
PIRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PIRC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PIRC has about the same amount of shares outstanding.
PIRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.14 indicates that PIRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
PIRC has a better Altman-Z score (2.14) than 65.52% of its industry peers.
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.
PIRC has a better Debt to FCF ratio (4.06) than 86.21% of its industry peers.
PIRC has a Debt/Equity ratio of 0.64. This is a neutral value indicating PIRC is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.64, PIRC is doing good in the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.5
WACC6.36%
2.3 Liquidity
PIRC has a Current Ratio of 1.48. This is a normal value and indicates that PIRC is financially healthy and should not expect problems in meeting its short term obligations.
PIRC has a better Current ratio (1.48) than 62.07% of its industry peers.
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.
PIRC has a Quick ratio (0.96) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
PIRC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.51%.
PIRC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.66% yearly.
The Revenue has decreased by -1.81% in the past year.
PIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.06% yearly.
EPS 1Y (TTM)3.51%
EPS 3Y152.39%
EPS 5Y-0.66%
EPS Q2Q%6.67%
Revenue 1Y (TTM)-1.81%
Revenue growth 3Y15.62%
Revenue growth 5Y5.06%
Sales Q2Q%0.83%
3.2 Future
Based on estimates for the next years, PIRC will show a small growth in Earnings Per Share. The EPS will grow by 4.82% on average per year.
PIRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.48% yearly.
EPS Next Y-6.06%
EPS Next 2Y2.15%
EPS Next 3Y4.82%
EPS Next 5YN/A
Revenue Next Year1.03%
Revenue Next 2Y1.97%
Revenue Next 3Y2.52%
Revenue Next 5Y2.48%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.71, the valuation of PIRC can be described as reasonable.
68.97% of the companies in the same industry are more expensive than PIRC, based on the Price/Earnings ratio.
PIRC is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
PIRC is valuated reasonably with a Price/Forward Earnings ratio of 9.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PIRC is on the same level as its industry peers.
PIRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
PIRC's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PIRC indicates a somewhat cheap valuation: PIRC is cheaper than 65.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.8 | ||
| EV/EBITDA | 4.43 |
4.3 Compensation for Growth
PIRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.15%
EPS Next 3Y4.82%
5. Dividend
5.1 Amount
PIRC has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.30, PIRC has a dividend in line with its industry peers.
PIRC's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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
29.93% of the earnings are spent on dividend by PIRC. This is a low number and sustainable payout ratio.
PIRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.93%
EPS Next 2Y2.15%
EPS Next 3Y4.82%
BIT:PIRC (3/10/2025, 10:56:16 AM)
5.728
+0.08 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners13.15%
Inst Owner ChangeN/A
Ins Owners25.7%
Ins Owner ChangeN/A
Market Cap5.73B
Analysts80.91
Price Target6.73 (17.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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)1.63%
PT rev (3m)2.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 9.3 | ||
| P/S | 0.57 | ||
| P/FCF | 5.8 | ||
| P/OCF | 4.05 | ||
| P/B | 1.03 | ||
| P/tB | 14.85 | ||
| EV/EBITDA | 4.43 |
EPS(TTM)0.59
EY10.3%
EPS(NY)0.62
Fwd EY10.75%
FCF(TTM)0.99
FCFY17.25%
OCF(TTM)1.41
OCFY24.67%
SpS10.09
BVpS5.57
TBVpS0.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.14 |
F-Score5
WACC6.36%
ROIC/WACC1.5
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)3.51%
EPS 3Y152.39%
EPS 5Y-0.66%
EPS Q2Q%6.67%
EPS Next Y-6.06%
EPS Next 2Y2.15%
EPS Next 3Y4.82%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.81%
Revenue growth 3Y15.62%
Revenue growth 5Y5.06%
Sales Q2Q%0.83%
Revenue Next Year1.03%
Revenue Next 2Y1.97%
Revenue Next 3Y2.52%
Revenue Next 5Y2.48%
EBIT growth 1Y3.69%
EBIT growth 3Y52.7%
EBIT growth 5Y2.55%
EBIT Next Year58.77%
EBIT Next 3Y20.23%
EBIT Next 5Y12.1%
FCF growth 1Y29.03%
FCF growth 3Y38.6%
FCF growth 5Y33.61%
OCF growth 1Y34.78%
OCF growth 3Y30.04%
OCF growth 5Y14.35%