CIR SpA - Compagnie Industriali Riunite (CIR) AI Stock Analysis

• Market Cap: €594.52M
• Dividend Yield: N/A
• Average Volume (3M): 477.58K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.71
• Revenue Growth: -13.42%
• EPS Growth: N/A
• Country: IT
• Employees: 15,450
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 0.02
• Shares Outstanding: 916,059,940
• 10 Day Avg. Volume: 750,527
• 30 Day Avg. Volume: 477,578
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €0.65
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: €0.50 ▼(-23.08% Downside)

CIR SpA's overall stock score is driven by a mixed financial performance with strong gross margins but declining revenue and cash flow constraints. The technical analysis indicates a neutral to slightly bearish outlook, with potential for a rebound due to oversold conditions. The valuation is relatively attractive, suggesting the stock might be undervalued, but the absence of a dividend yield is a drawback for income investors.

CIR SpA - Compagnie Industriali Riunite Business Overview & Revenue Model

Company Description

CIR S.p.A. - Compagnie Industriali Riunite, through its subsidiaries, primarily operates in the automotive components and healthcare sectors in Italy, other European countries, North America, South America, Asia, and internationally. The company develops, produces, and sells suspension components, including coil springs, stabilizer bars, torsion bars, stabilinkers, leaf springs, and track adjusters for cars, light and heavy commercial vehicles, earth-moving machines, and railway rolling stock manufacturers; and precision springs for automotive, electric solutions, lighting, trains, and construction sectors. It also offers oil, petrol, diesel fuel, and engine and cabin air filters for original equipment, replacement for original suppliers, and independent aftermarkets; and air and cooling systems, such as intake manifold systems, air induction systems, coolant pump modules, thermostat housing and ducts, and thermal management solutions. In addition, the company operates nursing homes, and functional and psychiatric rehabilitation units; and provides treatment for serious cerebral injuries and neurological pathologies, as well as trauma or chronic-degenerative muscular and skeletal pathologies. Further, it manages Ospedale Fratelli Montecchi di hospital in Suzzara, Italy; and Villa dei Pini care home in Civitanova Marche. The company offers healthcare services under the Anni Azzurri, Santo Stefano, Neomesia, and Charleston brands. CIR S.p.A. - Compagnie Industriali Riunite is based in Milan, Italy.

How the Company Makes Money

CIR generates revenue primarily through its diversified portfolio of subsidiaries. The automotive components segment, led by Sogefi, contributes significantly to the company's earnings by supplying parts to major automobile manufacturers worldwide. Revenue is derived from the sale of these components, which includes filtration systems, suspension parts, and engine components. In the healthcare sector, KOS provides services such as nursing homes and rehabilitation facilities, generating income through patient care services and government contracts. The media division earns revenue through advertising and content production, leveraging its stakes in media companies. Additionally, CIR benefits from strategic partnerships and collaborations within these sectors, enhancing its market presence and revenue potential.

CIR SpA - Compagnie Industriali Riunite Financial Statement Overview

Summary

CIR SpA demonstrates strong gross margins and improved profitability but struggles with declining revenue and cash flow constraints. The balance sheet is stable with manageable leverage, but the shrinking asset base could limit growth. Enhancing revenue growth and improving cash conversion will be essential.

Income Statement

CIR SpA shows a moderate performance in the income statement with a strong gross profit margin of 65.2% in 2024, indicating effective cost management. However, the net profit margin improved to 7.3% in 2024 from a much lower margin in 2023, reflecting a recovery. The revenue growth rate was negative at -23.5% from 2023 to 2024, which is concerning. EBIT and EBITDA margins were reasonably strong, particularly the EBITDA margin at 17.1%, suggesting effective earnings before non-cash charges.

Balance Sheet

CIR SpA's balance sheet reflects stability with a debt-to-equity ratio of 1.43 in 2024, indicating a manageable level of debt relative to equity. Return on equity improved significantly to 16.7% in 2024, showcasing effective management of equity to generate profits. The equity ratio stands at a healthy 28.7%, suggesting a solid capital structure. However, the overall asset base has been slightly shrinking over recent years.

Cash Flow

The cash flow statement shows a challenging environment with a decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio was strong at 1.37 in 2024, indicating good cash generation relative to net income. However, the free cash flow to net income ratio was 0.58, reflecting some constraints in converting net income into free cash flow, which may impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.08B	1.82B	2.38B	2.24B	1.98B	1.83B
Gross Profit	1.00B	1.19B	297.28M	954.49M	903.79M	841.34M
EBITDA	249.69M	318.49M	254.16M	296.13M	330.61M	240.89M
Net Income	-12.98M	132.18M	32.79M	14.19M	47.03M	-39.63M
Balance Sheet
Total Assets	3.07B	2.76B	3.23B	3.31B	3.33B	3.47B
Cash, Cash Equivalents and Short-Term Investments	727.84M	430.34M	395.30M	477.85M	559.10M	714.70M
Total Debt	1.28B	1.13B	1.44B	1.50B	1.57B	1.67B
Total Liabilities	1.87B	1.69B	2.20B	2.30B	2.35B	2.48B
Stockholders Equity	863.25M	791.17M	753.62M	743.36M	740.39M	770.98M
Cash Flow
Free Cash Flow	68.29M	76.73M	111.57M	70.79M	94.94M	42.06M
Operating Cash Flow	183.47M	180.89M	213.57M	206.13M	207.29M	170.85M
Investing Cash Flow	-293.74M	-49.01M	-167.19M	-140.74M	-70.82M	-150.81M
Financing Cash Flow	-306.48M	-502.94M	-136.50M	-157.16M	-257.41M	-142.22M

CIR SpA - Compagnie Industriali Riunite Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CIR, the sentiment is Positive. The current price of 0.65 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.63, and above the 200-day MA of 0.60, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 63.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CIR.

CIR SpA - Compagnie Industriali Riunite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FILA	69 Neutral	462.12M	7.29	11.08%	4.42%	-14.79%	-64.42%
CIR	64 Neutral	€594.52M	13.46	5.14%	―	-13.42%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%