Interpump Group SPA (IP) AI Stock Analysis

• Market Cap: €3.73B
• Dividend Yield: 0.92%
• Average Volume (3M): 458.75K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.08
• Revenue Growth: -7.22%
• EPS Growth: -17.21%
• Country: IT
• Employees: 9,069
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): 0.63
• Shares Outstanding: 108,879,295
• 10 Day Avg. Volume: 437,739
• 30 Day Avg. Volume: 458,755
• PEG Ratio: 2.85
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.78
• 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: €41.50
• Price Target Upside: 18.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Interpump Group SPA exhibits strong financial performance with robust cash flow and profitability margins, offsetting concerns about its debt levels. However, technical indicators show a bearish trend with the stock trading below key moving averages and nearing oversold conditions. The stock's valuation is reasonable, offering potential upside if market sentiment improves.

Positive Factors

Cash Flow

Cash flow continued to be strong, with free cash flow in the quarter reaching €48m and net debt decreasing.

M&A Strategy

The company performed well on cash generation and M&A strategy, leading to a maintained Buy rating.

Negative Factors

Hydraulics Market

The quarter showed a persistent negative trend in Hydraulics, with revenues falling short of expectations.

Profitability

The company reported a disappointing fourth-quarter performance, missing profitability guidance due to an inventory write-down.

Interpump Group SPA Business Overview & Revenue Model

Company Description

Interpump Group S.p.A. manufactures and markets high pressure plunger pumps in Italy, rest of Europe, North America, the Far East, Oceania, and internationally. It operates in two segments, Hydraulic Sector and Water Jetting Sector. The Hydraulic Sector segment produces and sells power take-offs that transmit drive from an industrial vehicle engine or transmission through hydraulic components; hydraulic cylinders that are components of hydraulic systems of various vehicle types; front-end and underbody cylinders for use in industrial vehicles in the construction sector; double acting cylinders, which are used in a range of applications, such as earthmoving and agricultural machinery, cranes and truck cranes, waste compactors, etc.; hydraulic hoses and fittings that are used in hydraulic equipment and water systems; and pumps, directional controls, valves, other hydraulic components, and ancillary products. The Water Jetting Sector segment provides high pressure pumps and systems that are used in a range of industrial sectors for the conveyance of fluids. This segment's high pressure plunger pumps are the primary components of pressure washers, as well as used for car wash installations, forced lubrication systems for machine tools, and inverse osmosis systems for seawater desalination plants. Its very high-pressure pumps and systems used for cleaning surfaces, ship hulls, and various hoses; removing machining burr; cutting and removing cement, asphalt, and paint coatings from stone, cement, and metal surfaces; and cutting solid materials. This segment also engages in drawing, blanking, and pressing sheet metals; and providing high pressure homogenizers, mixers, agitators, piston pumps, valves, and other machines for use in the food processing, chemicals, cosmetics, and pharmaceutical industries. The company was founded in 1977 and is based in Sant'Ilario d'Enza, Italy.

How the Company Makes Money

Interpump Group S.p.A. generates revenue through the design, manufacturing, and sale of its products in the Water Jetting and Hydraulic sectors. The company's primary revenue streams come from selling high-pressure pumps and hydraulic components to OEMs (Original Equipment Manufacturers), distributors, and end-users across various industries including automotive, agriculture, construction, and industrial cleaning. Interpump's earnings are supported by a global distribution network and strategic acquisitions that enhance its product portfolio and market reach. The company also capitalizes on its technological expertise to provide customized solutions, which further bolsters its revenue generation.

Interpump Group SPA Financial Statement Overview

Summary

Interpump Group SPA maintains a strong financial position with consistent revenue growth, solid profitability margins, and effective cash flow management. Despite significant debt, the company's robust cash flow generation mitigates potential risks. Continued focus on operational efficiency is essential for sustaining long-term growth and stability.

Income Statement

Interpump Group SPA has demonstrated strong revenue growth, with a notable increase from 2020 to 2021 and continuous growth into 2023. However, there was a slight drop in revenue in 2024. Gross profit margin has been stable, averaging around 35%, indicating efficient cost management. The net profit margin has slightly decreased, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins are robust, reflecting strong operational performance.

Balance Sheet

The company's balance sheet shows a solid equity position with a debt-to-equity ratio that has been improving over the years. The equity ratio is healthy, indicating a strong reliance on equity rather than debt to finance assets. However, the company has a considerable amount of debt, which could pose risks if not managed properly. Return on equity (ROE) is commendable, showcasing effective use of equity capital.

Cash Flow

Interpump Group SPA exhibits strong cash flow generation capabilities, with operating cash flow consistently growing. The free cash flow has shown substantial growth, particularly from 2022 to 2023. The operating cash flow to net income ratio suggests that the company's income is well-supported by cash flow, enhancing sustainability. The free cash flow to net income ratio further signifies good cash profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.08B	2.24B	2.08B	1.60B	1.29B
	Gross Profit
713.65M	779.97M	724.51M	574.69M	463.49M
	EBIT
311.89M	417.05M	384.00M	295.05M	207.24M
	EBITDA
450.93M	520.21M	471.47M	359.23M	284.60M
	Net Income Common Stockholders
227.06M	274.27M	266.50M	195.88M	170.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
392.64M	334.48M	358.27M	349.01M	343.17M
	Total Assets
3.39B	3.24B	3.13B	2.77B	2.15B
	Total Debt
801.68M	820.98M	899.23M	843.27M	611.92M
	Net Debt
409.04M	486.50M	540.95M	494.26M	268.75M
	Total Liabilities
1.37B	1.44B	1.56B	1.43B	999.31M
	Stockholders Equity
2.01B	1.79B	1.55B	1.33B	1.14B
Cash Flow		Free Cash Flow
228.46M	164.23M	71.31M	250.09M	217.94M
	Operating Cash Flow
357.65M	332.55M	203.87M	257.23M	280.88M
	Investing Cash Flow
-216.13M	-199.50M	-165.46M	-411.15M	-98.96M
	Financing Cash Flow
-64.66M	-175.20M	-52.95M	157.06M	-55.76M

Interpump Group SPA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.90
• 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:IP, the sentiment is Neutral. The current price of 34.9 is above the 20-day moving average (MA) of 31.18, above the 50-day MA of 32.48, and below the 200-day MA of 39.13, indicating a neutral trend. The MACD of 0.81 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 90.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:IP.

Interpump Group SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LDO	75 Outperform	€28.14B	25.36	12.77%	0.59%	16.17%	63.09%
TEN	74 Outperform	€18.42B	10.21	10.53%	4.00%	-14.41%	-44.84%
PRY	71 Outperform	€16.38B	23.02	15.32%	1.45%	20.34%	25.32%
IP	66 Neutral	€3.73B	16.43	11.94%	0.92%	-7.22%	-17.21%
Sector *	64 Neutral	$4.43B	12.01	5.15%	249.50%	3.98%	-11.60%
SFER	46 Neutral	€1.00B	112.46	-10.16%	1.71%	-10.48%	-360.89%