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Brembo SPA
(BRE)
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Rating:69Neutral
Price Target:
€12.00
▲(20.48% Upside)
Action:Reiterated
Date:08/04/26
Overall score reflects solid financial performance with manageable leverage and improving free cash flow, tempered by a step-down in profitability versus prior peak years and only mixed cash conversion. Technicals are mildly supportive with price above major moving averages, but momentum indicators are not strongly bullish. Valuation is broadly reasonable with a moderate P/E and a supportive dividend yield.
Positive Factors
OEM relationships & premium positioning
Brembo's entrenched OEM relationships and premium/performance positioning mean durable revenue streams tied to multi-year platform cycles. Motorsport-derived tech reinforces brand and helps win OEM contracts, supporting stable order visibility and higher-margin opportunities over coming quarters.
Negative Factors
Profitability below prior peaks
Margins and net income have declined from 2022–2024 highs, indicating structural mix shifts or cost pressures. Lower operating leverage reduces earnings resilience to volume shocks and could persist if product mix or input costs are not corrected, limiting profit recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
OEM relationships & premium positioning
Brembo's entrenched OEM relationships and premium/performance positioning mean durable revenue streams tied to multi-year platform cycles. Motorsport-derived tech reinforces brand and helps win OEM contracts, supporting stable order visibility and higher-margin opportunities over coming quarters.
Read all positive factors
Brembo SPA (BRE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€5.29B
Dividend Yield2.94%
Average Volume (3M)284.71K
Price to Earnings (P/E)14.2
Beta (1Y)1.07
Revenue GrowthN/A
EPS GrowthN/A
CountryIT
Employees14,932
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.72
Shares Outstanding333,922,240
10 Day Avg. Volume334,007
30 Day Avg. Volume284,713
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.30
Price to Sales (P/S)0.81
P/FCF Ratio17.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€11.35Price Target Upside13.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.72
Revenue Forecast (FY)€3.84B
Brembo SPA Business Overview & Revenue Model
Company Description
Brembo S.p.A. is an Italian company specializing in the engineering, production, and global distribution of advanced braking systems and related components. Their sophisticated solutions cater to a diverse array of vehicles, including passenger ca...
How the Company Makes Money
Brembo makes money mainly by selling braking systems and components to vehicle manufacturers and to the replacement-parts market. Its core revenue model is product sales (notably brake calipers, discs/rotors, pads and complete brake assemblies) un...
Brembo SPA Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.77B | 3.70B | 3.86B | 3.88B | 3.64B | 2.79B |
| Gross Profit | 1.12B | 1.05B | 2.13B | 1.79B | 1.66B | 1.50B |
| EBITDA | 612.36M | 603.20M | 680.18M | 652.26M | 613.79M | 499.48M |
| Net Income | 229.01M | 209.30M | 262.60M | 305.04M | 292.83M | 215.54M |
Balance Sheet | ||||||
| Total Assets | 4.96B | 4.79B | 4.63B | 4.17B | 3.85B | 3.68B |
| Cash, Cash Equivalents and Short-Term Investments | 582.90M | 656.70M | 867.61M | 510.06M | 415.88M | 557.46M |
| Total Debt | 1.40B | 1.38B | 1.24B | 989.81M | 948.73M | 971.97M |
| Total Liabilities | 2.57B | 2.46B | 2.30B | 2.07B | 1.90B | 1.89B |
| Stockholders Equity | 2.34B | 2.29B | 2.29B | 2.07B | 1.91B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | 291.18M | 170.25M | 14.44M | 246.65M | 57.57M | 171.78M |
| Operating Cash Flow | 646.55M | 581.74M | 425.50M | 659.47M | 341.51M | 413.81M |
| Investing Cash Flow | -333.27M | -743.98M | -79.90M | -414.72M | -316.06M | -334.07M |
| Financing Cash Flow | -261.52M | -164.67M | -83.32M | -154.90M | -235.35M | -56.30M |
Brembo SPA Technical Analysis
Positive
9.96
Price Trends
10.65
Negative
9.77
Positive
9.56
Positive
Market Momentum
0.03
Negative
50.29
Neutral
50.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BRE, the sentiment is Positive. The current price of 9.96 is below the 20-day moving average (MA) of 10.33, below the 50-day MA of 10.65, and above the 200-day MA of 9.56, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BRE.
Brembo SPA Peers Comparison
UnderperformOutperform
Sector (55)
IT:BRE
Brembo SPA
10.21
1.63
18.98%
IT:IP
Interpump Group SPA
37.68
-1.61
-4.09%
IT:SGF
Sogefi SPA
2.00
-0.58
-22.49%
IT:PIRC
Pirelli & C. SpA
6.49
0.99
18.04%
Brembo SPA Corporate Events
Brembo Forms Joint Venture with NBHX to Localize Sensify Braking in China
May 22, 2026
Brembo has entered a joint venture with China’s Ningbo Huaxiang Electronic (NBHX) to localize its Sensify intelligent braking platform for the Chinese market, marking a significant push into the world’s most dynamic automotive arena. T...
Brembo Delivers Solid Q1, Lifts 2026 Outlook and Advances Sensify Rollout
May 7, 2026
Brembo reported first‑quarter 2026 revenues of €937.4 million, down 2.1% year on year but up 1.9% at constant exchange rates, as growth in motorcycles and several key markets offset declines in cars, racing and China. Profitability imp...
Brembo’s Sensify Intelligent Braking Platform Enters Large-Scale Production
May 4, 2026
Brembo has begun large-scale series production of its Sensify ȑ intelligent braking platform for a major global vehicle manufacturer, where it will be fitted as standard on all vehicles in a specific program. The launch confirms the industria...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.