Company DescriptionDanieli & C. Officine Meccaniche S.p.A. designs, builds, and sells plants for the iron and steel industry in Europe, Russia, the Middle East, the Americas, and South East Asia. It operates through two segments, Plant Making and Steel Making. The company designs and builds plants for various process areas, including mines; pellet production plants; blast furnaces; direct reduction; scrap shredders; steelworks for production of liquid steel; and continuous casting for blooms and billets, slabs, and thin slabs. It also designs and builds rolling mills for long products and seamless tubes; lines for welded tubes; hot and cold rolling mills for flat products; process lines for flat products; and plants for dimensional checking and for non-destructive quality control, and conditioning plants. In addition, the company offers plants for secondary processing, such as peeling, straightening, 2-roll reeling, and drawing machines; forging presses and manipulators, and forging plants; extrusion presses for ferrous and non-ferrous materials; plants for longitudinal cutting and for transversal cutting; plant automation systems; and cranes and lifting equipment. Further, it is involved in the production and sale of special steel comprising ingots, blooms, billets, and forged and rolled products; and structural steel comprising high carbon steel, as well as case-hardened, hardened and tempered, and surface hardened steel for use in various engineering components. The company was founded in 1914 and is based in Buttrio, Italy.

How the Company Makes Money

Danieli & C.Officine Meccaniche SPA Financial Statement Overview

Summary

Danieli & C.Officine Meccaniche SPA exhibits strong revenue growth and profitability, supported by an efficient cost structure. The balance sheet is solid with low leverage and a strong equity base, though there is room to enhance returns on equity. Cash flow challenges are noted, particularly in free cash flow generation, but overall cash operations remain robust. The company is well-positioned for future growth, though improving cash flow metrics will be key to sustaining its financial health.

Income Statement

Very Positive

The company demonstrates strong revenue growth with a 11.2% increase from the previous year, indicating a positive trend. Gross profit margin is robust at 29.7%, reflecting efficient production and pricing strategies. Net profit margin is healthy at 5.5%, supported by a strong EBIT margin of 5.1% and an EBITDA margin of 11.0%. Overall, the income statement suggests solid profitability and growth potential.

Balance Sheet

Positive

The balance sheet is stable with a low debt-to-equity ratio of 0.23, indicating conservative leverage practices. The equity ratio stands at 35.0%, showing a solid base of stockholder equity relative to total assets. Return on equity is relatively modest at 9.2%, suggesting room for improved efficiency in using equity to generate profits.

Cash Flow

Positive

Cash flow analysis reveals a decrease in free cash flow by 67.4%, which is a concern. However, the operating cash flow to net income ratio is favorable at 1.38, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio is 0.65, which shows some challenges in converting net income into free cash flow.

Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
4.35B	3.91B	3.47B	3.04B	2.38B
	Gross Profit
1.29B	902.23M	630.98M	770.74M	715.40M
	EBIT
220.78M	137.61M	209.56M	143.88M	91.61M
	EBITDA
477.30M	445.90M	444.71M	243.09M	219.80M
	Net Income Common Stockholders
240.80M	243.64M	218.72M	80.19M	62.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.62B	2.21B	2.07B	1.66B	1.57B
	Total Assets
7.49B	6.54B	6.16B	5.45B	5.08B
	Total Debt
605.05M	313.63M	561.11M	585.26M	601.71M
	Net Debt
-1.54B	-1.44B	-954.96M	-487.61M	-388.73M
	Total Liabilities
4.86B	4.13B	3.94B	3.44B	3.14B
	Stockholders Equity
2.63B	2.40B	2.22B	2.01B	1.94B
Cash Flow		Free Cash Flow
156.08M	478.80M	166.47M	138.42M	16.40M
	Operating Cash Flow
331.84M	638.39M	279.39M	279.71M	191.79M
	Investing Cash Flow
-194.30M	-92.12M	-24.63M	-231.61M	-191.69M
	Financing Cash Flow
289.92M	-280.31M	168.56M	26.50M	-111.16M

Danieli & C.Officine Meccaniche SPA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0APM		€2.33B	7.10	10.20%	0.88%	―	―
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
0DUK		€197.30M	53.22	-1.16%	0.55%	―	―
0EWD		€3.77B	17.45	11.06%	0.94%	―	―
0NIG		€162.71M	28.14	3.89%	3.99%	―	―

* Industrials Sector Average

Performance Comparison

GB:0APM

Danieli & C.Officine Meccaniche SPA

34.85

-2.68

-7.14%

GB:0DUK

Biesse SPA

7.22

-4.31

-37.38%

GB:0EWD

Interpump Group SPA

35.48

-7.39

-17.24%

GB:0NIG

Sabaf Technology and Safety

14.50

-4.73

-24.60%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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