Aquafil SpA (ECNL) AI Stock Analysis

• Market Cap: €113.52M
• Dividend Yield: N/A
• Average Volume (3M): 121.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -5.15%
• EPS Growth: 39.04%
• Country: IT
• Employees: 2,498
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.29
• Shares Outstanding: 73,172,200
• 10 Day Avg. Volume: 71,672
• 30 Day Avg. Volume: 121,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €1.85
• Price Target Upside: 39.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Aquafil SpA is currently facing financial difficulties, with challenges in revenue and profitability, as well as high leverage, which are significant concerns. However, the technical analysis provides some short-term optimism with positive momentum indicators. Despite this, the valuation metrics, particularly the negative P/E ratio, reflect the underlying risks and make the stock less appealing for long-term investors.

Positive Factors

Consumer Demand

As consumer demand for sustainable products grows, Econyl's role in circular economy practices positions Aquafil for long-term growth and a competitive edge on the market.

Financial Position

Aquafil's financial position improved significantly over the quarter, supported by the successful completion of its €40mn capital raise, which strengthened the company's balance sheet.

Market Positioning

Aquafil boasts a unique positioning in the market, as it is a pioneer in circularity with Econyl, a unique regeneration system to produce sustainable fibre and polymers from nylon 6 waste.

Negative Factors

Earnings Performance

Aquafil’s 4Q results came in below expectations and company targets on profitability, impacting the rest of the P&L and the NFP.

Investment

The company plans sizeable investments in production capacity, technological improvements, and automation, which may strain financial resources in the short term.

Aquafil SpA Business Overview & Revenue Model

Company Description

Aquafil SpA is an Italian company operating primarily in the synthetic fibers sector, with a focus on producing and supplying polyamide (nylon) yarns and fibers. The company is renowned for its ECONYL® brand, which is a sustainable nylon product made from regenerated waste materials. Aquafil serves various industries, including fashion, sportswear, and interior design, emphasizing sustainability and innovation in its production processes.

How the Company Makes Money

Aquafil SpA generates revenue primarily through the manufacturing and sale of polyamide yarns and fibers, particularly its ECONYL® brand. The company's business model focuses on creating high-quality, sustainable products from recycled materials, which it sells to manufacturers in the fashion, textile, and flooring industries. Key revenue streams include direct sales of its nylon products to businesses and partnerships with companies that use ECONYL® in their products. Significant collaborations with major brands in the fashion and interior design sectors also contribute to Aquafil's earnings, as these partnerships enhance the visibility and demand for its sustainable materials.

Aquafil SpA Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
571.81M	684.90M	570.31M	446.87M	551.51M
	Gross Profit
159.55M	204.31M	180.22M	156.81M	173.18M
	EBIT
-8.86M	37.56M	21.48M	8.78M	17.39M
	EBITDA
39.84M	92.79M	63.98M	51.21M	54.71M
	Net Income Common Stockholders
-25.85M	29.15M	10.67M	595.00K	9.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
163.37M	120.65M	153.52M	209.79M	92.04M
	Total Assets
701.22M	724.96M	668.67M	679.70M	618.33M
	Total Debt
411.90M	83.15M	332.39M	427.48M	340.81M
	Net Debt
254.24M	-27.54M	179.74M	218.53M	250.41M
	Total Liabilities
575.96M	549.55M	516.56M	552.80M	476.00M
	Stockholders Equity
125.25M	175.40M	152.10M	126.90M	142.34M
Cash Flow		Free Cash Flow
35.90M	-52.15M	49.44M	32.39M	-15.80M
	Operating Cash Flow
69.58M	-13.12M	89.05M	60.26M	40.27M
	Investing Cash Flow
-33.22M	-38.63M	-40.25M	-29.45M	-91.13M
	Financing Cash Flow
10.62M	9.78M	-105.10M	87.74M	37.98M

Aquafil SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:ECNL, the sentiment is Positive. The current price of 1.33 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.29, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 81.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:ECNL.

Aquafil SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	74 Outperform	€17.58B	9.65	10.53%	4.16%	-14.41%	-44.84%
ENI	67 Neutral	€38.70B	15.07	4.83%	7.70%	-1.16%	-23.76%
ERG	67 Neutral	€2.62B	13.71	8.74%	5.71%	-0.39%	6.12%
PRY	62 Neutral	€14.74B	19.54	16.44%	1.52%	10.89%	32.38%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%
ECNL	50 Neutral	€113.52M	―	-11.50%	―	-5.15%	39.04%