Pirelli & C. SpA (PIRC) AI Stock Analysis

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Pirelli & C. SpA

(Milan:PIRC)

Select Model

Rating:66Neutral

Price Target:EUR 7.00▲(4.48% Upside)

Action:reiterated

Date:08/11/26

The score is mainly driven by solid cash generation and improving leverage, offset by the major TTM red flag of negative operating profitability. Technicals are steady but not strongly bullish, while valuation is supportive with a reasonable P/E and a high dividend yield.

Positive Factors

Cash generationConsistently positive operating and free cash flow provides durable internal funding for capex, R&D, dividends and debt reduction. Over a 2–6 month horizon this cashability supports resilience through cyclicality and enables management to prioritize strategic investments or balance-sheet repair.

Negative Factors

Operating profitability deteriorationA swing to negative operating margins in the TTM signals structural pressure on core profitability—whether from cost inflation, mix shifts, or pricing limits. If this persists it undermines sustainable earnings, weakens cash conversion and constrains strategic options over the coming months.

Pirelli & C. SpA (PIRC) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 7.33B
Dividend Yield: 4.83%
Average Volume (3M): 1.59M
Price to Earnings (P/E): 13.4
Beta (1Y): 0.61
Revenue Growth: -0.77%
EPS Growth: 0.46%
Country: Italy
Employees: 30,704
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

Pirelli & C. SpA Business Overview & Revenue Model

Company Description

Pirelli & C. S.p.A., an Italian enterprise founded in Milan in 1872, operates globally as a prominent manufacturer and supplier of vehicle tires. The company's diverse product range caters to cars, motorcycles, and bicycles, featuring established bra...

How the Company Makes Money

Pirelli makes money primarily by manufacturing and selling branded tires through two main channels: (1) replacement tires (sold to consumers and fleets via dealers, distributors, and retail networks) and (2) original equipment (OE) tires (sold direct...

Pirelli & C. SpA Financial Statement Overview

Summary

Financials are supported by consistently positive free cash flow and improving leverage (debt-to-equity down to ~0.47–0.49x). However, the latest TTM shows a key risk: operating profitability flipped negative (EBIT/EBITDA margins negative) despite higher revenue and positive net income, increasing uncertainty around earnings quality and near-term margin sustainability.

Income Statement

56Neutral

Balance Sheet

63Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.81B	6.78B	6.77B	6.65B	6.62B	5.33B
Gross Profit	3.85B	2.22B	4.22B	4.40B	4.41B	3.67B
EBITDA	1.56B	1.49B	1.41B	1.39B	1.27B	1.07B
Net Income	524.15M	497.53M	467.98M	479.08M	417.76M	302.80M
Balance Sheet
Total Assets	13.66B	13.35B	13.68B	13.53B	13.90B	13.88B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.61B	1.67B	1.48B	1.54B	2.00B
Total Debt	3.13B	2.96B	3.83B	3.96B	4.49B	5.28B
Total Liabilities	6.98B	6.90B	7.77B	7.91B	8.44B	8.84B
Stockholders Equity	6.40B	6.28B	5.76B	5.49B	5.32B	4.91B
Cash Flow
Free Cash Flow	651.93M	927.94M	888.89M	960.83M	796.24M	632.40M
Operating Cash Flow	1.15B	1.31B	1.29B	1.36B	1.13B	919.07M
Investing Cash Flow	-382.58M	-360.29M	-421.26M	-392.86M	-326.62M	-256.39M
Financing Cash Flow	-651.19M	-888.10M	-610.70M	-979.58M	-1.40B	-1.08B

Pirelli & C. SpA Technical Analysis

Technical Analysis SentimentPositive

Last Price6.70

Price Trends

50DMA6.57Positive

100DMA6.53Positive

200DMA6.17Positive

Market Momentum

MACD0.03Negative

RSI54.80Neutral

STOCH70.30Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:PIRC, the sentiment is Positive. The current price of 6.70 is above the 20-day moving average (MA) of 6.64, above the 50-day MA of 6.57, and above the 200-day MA of 6.17, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 70.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:PIRC.

Pirelli & C. SpA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

IT:PIRC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IT:BRE	70Outperform	EUR 5.27B	13.97	9.85%	2.98%	―	―
IT:INDB	70Outperform	EUR 114.21M	21.08	3.56%	3.00%	9.32%	-78.38%
IT:PIRC	66Neutral	EUR 7.33B	13.40	8.40%	4.83%	-0.77%	0.46%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

IT:PIRC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:PIRC	Pirelli & C. SpA	6.70	0.87	15.00%
IT:BRE	Brembo SPA	10.06	0.47	4.93%
IT:LNDR	Landi Renzo S.p.A.	0.66	-0.20	-23.26%
IT:INDB	Indel B S.p.A.	20.00	1.46	7.87%
IT:CFL	Cofle S.p.A.	1.69	-1.92	-53.19%
IT:RFG	Racing Force SpA	5.18	0.49	10.49%

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.

Date of analysis: Aug 11, 2026

Pirelli & C. SpA AI Stock Analysis