PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis
BIT:PIRC - Euronext Milan - IT0005278236 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to PIRC. PIRC was compared to 30 industry peers in the Automobile Components industry. While PIRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PIRC is not valued too expensively and it also shows a decent growth rate. PIRC also has an excellent dividend rating. These ratings would make PIRC suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year PIRC was profitable.
In the past year PIRC had a positive cash flow from operations.
Each year in the past 5 years PIRC has been profitable.
PIRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PIRC's Return On Assets of 5.36% is amongst the best of the industry. PIRC outperforms 93.33% of its industry peers.
PIRC's Return On Equity of 12.28% is amongst the best of the industry. PIRC outperforms 83.33% of its industry peers.
PIRC has a Return On Invested Capital of 10.66%. This is amongst the best in the industry. PIRC outperforms 93.33% 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 6.39%.
The 3 year average ROIC (6.34%) for PIRC is below the current ROIC(10.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.28% | ||
| ROIC | 10.66% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
1.3 Margins
PIRC has a Profit Margin of 6.99%. This is amongst the best in the industry. PIRC outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of PIRC has declined.
PIRC has a Operating Margin of 13.48%. 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 remained more or less at the same level.
PIRC has a better Gross Margin (64.22%) than 93.33% of its industry peers.
PIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.48% | ||
| PM (TTM) | 6.99% | ||
| GM | 64.22% |
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
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 2.15 indicates that PIRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of PIRC (2.15) is better than 73.33% of its industry peers.
The Debt to FCF ratio of PIRC is 4.23, which is a neutral value as it means it would take PIRC, 4.23 years of fcf income to pay off all of its debts.
PIRC's Debt to FCF ratio of 4.23 is amongst the best of the industry. PIRC outperforms 86.67% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that PIRC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, PIRC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.64
WACC6.49%
2.3 Liquidity
PIRC has a Current Ratio of 1.23. 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 Current ratio (1.23) which is in line with its industry peers.
PIRC has a Quick Ratio of 1.23. This is a bad value and indicates that PIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PIRC (0.77) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.02% over the past year.
Measured over the past 5 years, PIRC shows a small growth in Earnings Per Share. The EPS has been growing by 1.33% on average per year.
PIRC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
PIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.94% yearly.
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
3.2 Future
The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
Based on estimates for the next years, PIRC will show a small growth in Revenue. The Revenue will grow by 2.11% on average per year.
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year2.35%
Revenue Next 2Y2.88%
Revenue Next 3Y3.13%
Revenue Next 5Y2.11%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 9.47, the valuation of PIRC can be described as very reasonable.
66.67% of the companies in the same industry are more expensive than PIRC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. PIRC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.37, the valuation of PIRC can be described as reasonable.
PIRC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, PIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PIRC.
63.33% of the companies in the same industry are more expensive than PIRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.38 | ||
| EV/EBITDA | 4.33 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)7.12
EPS Next 2Y9.11%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
PIRC has a Yearly Dividend Yield of 4.30%, which is a nice return.
PIRC's Dividend Yield is a higher than the industry average which is at 5.39.
Compared to an average S&P500 Dividend Yield of 2.42, PIRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of PIRC has a limited annual growth rate of 2.92%.
Dividend Growth(5Y)2.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PIRC pays out 28.30% of its income as dividend. This is a sustainable payout ratio.
The dividend of PIRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.3%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
BIT:PIRC (7/4/2025, 7:00:00 PM)
5.776
-0.04 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners13.77%
Inst Owner ChangeN/A
Ins Owners27.72%
Ins Owner ChangeN/A
Market Cap5.78B
Analysts83
Price Target6.87 (18.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend0.2
Dividend Growth(5Y)2.92%
DP28.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.8%
Min EPS beat(2)-1.96%
Max EPS beat(2)0.36%
EPS beat(4)3
Avg EPS beat(4)11.46%
Min EPS beat(4)-1.96%
Max EPS beat(4)39.27%
EPS beat(8)7
Avg EPS beat(8)19.38%
EPS beat(12)11
Avg EPS beat(12)25.48%
EPS beat(16)14
Avg EPS beat(16)30.41%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)2.31%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)5
Avg Revenue beat(12)17.85%
Revenue beat(16)9
Avg Revenue beat(16)27.3%
PT rev (1m)3.03%
PT rev (3m)1.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 8.37 | ||
| P/S | 0.56 | ||
| P/FCF | 6.38 | ||
| P/OCF | 4.39 | ||
| P/B | 0.99 | ||
| P/tB | 8.14 | ||
| EV/EBITDA | 4.33 |
EPS(TTM)0.61
EY10.56%
EPS(NY)0.69
Fwd EY11.95%
FCF(TTM)0.9
FCFY15.66%
OCF(TTM)1.32
OCFY22.79%
SpS10.27
BVpS5.84
TBVpS0.71
PEG (NY)2.61
PEG (5Y)7.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.28% | ||
| ROCE | 13.66% | ||
| ROIC | 10.66% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 27.01% | ||
| OM | 13.48% | ||
| PM (TTM) | 6.99% | ||
| GM | 64.22% | ||
| FCFM | 8.81% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
ROICexc(3y)7.45%
ROICexc(5y)5.98%
ROICexgc(3y)18.21%
ROICexgc(5y)15.26%
ROCE(3y)8.22%
ROCE(5y)6.5%
ROICexcg growth 3Y6.83%
ROICexcg growth 5Y-0.05%
ROICexc growth 3Y13.56%
ROICexc growth 5Y3.32%
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.23 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 70.84% | ||
| Cap/Sales | 4.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.98% | ||
| Profit Quality | 126.07% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.15 |
F-Score6
WACC6.49%
ROIC/WACC1.64
Cap/Depr(3y)65.74%
Cap/Depr(5y)60.49%
Cap/Sales(3y)5.68%
Cap/Sales(5y)5.68%
Profit Quality(3y)193.7%
Profit Quality(5y)400.33%
High Growth Momentum
Growth
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.99%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
Revenue Next Year2.35%
Revenue Next 2Y2.88%
Revenue Next 3Y3.13%
Revenue Next 5Y2.11%
EBIT growth 1Y7.11%
EBIT growth 3Y15.49%
EBIT growth 5Y3.46%
EBIT Next Year54.41%
EBIT Next 3Y18.84%
EBIT Next 5Y10.63%
FCF growth 1Y12.96%
FCF growth 3Y12.02%
FCF growth 5Y7.38%
OCF growth 1Y12.62%
OCF growth 3Y12.04%
OCF growth 5Y4.79%