Avio S.p.A. (AVIO) AI Stock Analysis

• Market Cap: €1.36B
• Dividend Yield: 0.39%
• Average Volume (3M): 656.74K
• Price to Earnings (P/E): 157.0
• Beta (1Y): 0.41
• Revenue Growth: 32.64%
• EPS Growth: -38.77%
• Country: IT
• Employees: 1,352
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 46,789,543
• 10 Day Avg. Volume: 749,352
• 30 Day Avg. Volume: 656,743
• PEG Ratio: -7.50
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 13.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €54.75
• Price Target Upside: 87.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €42.00 ▲(43.84% Upside)

Avio S.p.A.'s overall stock score reflects a combination of mixed financial performance and bearish technical indicators. The company's strong balance sheet and free cash flow generation are positive aspects, but declining profit margins and operational inefficiencies are concerns. The technical analysis indicates a bearish trend, and the high P/E ratio suggests the stock may be overvalued. Investors should be cautious given the current valuation and technical outlook.

Positive Factors

Negative Factors

Avio S.p.A. Business Overview & Revenue Model

Company Description

Avio S.p.A., through its subsidiaries, engages in the design, development, and production of propellant propulsion systems for space launchers in Italy and internationally. It is involved in the design, development, and production of solid propellant propulsion systems for tactical missiles; development, integration, and supply of light space launchers; and research and development of low environmental impact propulsion systems, and satellite tracking control motors. The company also offers propulsion boosters, liquid oxygen turbo pumps, and aerodynamic control surfaces. It offers space launchers under the VEGA and ARIANE names. The company was founded in 1984 and is based in Rome, Italy.

How the Company Makes Money

Avio generates revenue through multiple streams, primarily from contracts with governmental space agencies, commercial satellite operators, and international partnerships. Key revenue sources include the production of propulsion systems for the Ariane and Vega launch vehicles, as well as ongoing contracts for satellite launch services. The company benefits from significant collaborations, particularly with the European Space Agency (ESA) and the Italian Space Agency (ASI), which provide funding and support for various projects. Additionally, Avio's focus on innovation and technology development allows it to participate in emerging markets such as small satellite launches and reusable launch systems, further diversifying its revenue potential.

Avio S.p.A. Financial Statement Overview

Summary

Avio S.p.A. presents a mixed financial performance. The company shows positive revenue growth and strong free cash flow generation, indicating potential for future growth. However, declining profit margins and operational inefficiencies pose challenges. The balance sheet is strong with low leverage, providing financial stability. Overall, while there are areas of concern, the company maintains a stable financial position with opportunities for improvement in profitability and operational efficiency.

Income Statement

Avio S.p.A. shows a mixed performance in its income statement. The company has achieved a modest revenue growth rate of 3.88% TTM, indicating a positive trend in sales. However, the gross profit margin has decreased over time, from 33.14% in 2023 to 21.99% TTM, suggesting increased cost pressures. The net profit margin is low at 0.89% TTM, reflecting challenges in translating revenue into profit. The EBIT margin is negative, indicating operational inefficiencies, though the EBITDA margin remains positive at 5.08% TTM, showing some resilience in cash earnings.

Balance Sheet

Avio S.p.A.'s balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.036 TTM, indicating conservative leverage. The return on equity is modest at 1.94% TTM, suggesting limited profitability from equity investments. The equity ratio is strong, highlighting a solid capital structure with a significant portion of assets financed by equity. Overall, the balance sheet suggests financial stability with low risk from debt.

Cash Flow

The cash flow statement of Avio S.p.A. shows a robust free cash flow growth rate of 99.76% TTM, indicating significant improvement in cash generation. The operating cash flow to net income ratio is low at 0.045 TTM, suggesting that operating cash flows are not fully covering net income. However, the free cash flow to net income ratio is high at 0.97 TTM, demonstrating effective cash conversion from profits. Overall, the cash flow position is improving, but there are areas for enhancement in operating cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	665.82M	483.99M	343.70M	73.22M	324.14M	206.11M
Gross Profit	146.47M	130.03M	113.89M	72.40M	96.64M	105.57M
EBITDA	33.84M	23.97M	22.62M	21.45M	30.15M	35.34M
Net Income	5.94M	6.09M	6.49M	-435.00K	8.48M	14.12M
Balance Sheet
Total Assets	1.08B	1.09B	1.06B	1.29B	1.24B	1.12B
Cash, Cash Equivalents and Short-Term Investments	86.50M	101.68M	95.59M	131.40M	104.61M	124.67M
Total Debt	11.24M	11.59M	19.46M	56.95M	47.45M	62.03M
Total Liabilities	762.05M	779.52M	744.75M	982.10M	926.12M	810.48M
Stockholders Equity	310.59M	302.83M	300.62M	293.66M	302.48M	303.48M
Cash Flow
Free Cash Flow	30.97M	25.10M	6.14M	33.22M	7.54M	12.80M
Operating Cash Flow	31.98M	60.26M	42.48M	65.74M	41.26M	47.40M
Investing Cash Flow	-35.37M	-35.16M	-38.85M	-34.23M	-33.71M	-34.60M
Financing Cash Flow	3.32M	-19.01M	-39.44M	-4.72M	-27.59M	-32.44M

Avio S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AVIO, the sentiment is Negative. The current price of 29.2 is below the 20-day moving average (MA) of 33.50, below the 50-day MA of 35.74, and above the 200-day MA of 22.01, indicating a neutral trend. The MACD of -2.40 indicates Positive momentum. The RSI at 37.08 is Neutral, neither overbought nor oversold. The STOCH value of 33.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:AVIO.

Avio S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LDO	66 Neutral	€29.35B	28.03	12.10%	1.02%	14.13%	5.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FCT	54 Neutral	€7.03B	54.23	14.30%	―	18.44%	―
AVIO	52 Neutral	€1.36B	157.01	1.96%	0.39%	32.64%	-38.77%