Esprinet Spa (PRT) AI Stock Analysis

• Market Cap: €276.71M
• Dividend Yield: 7.08%
• Average Volume (3M): 377.06K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.98
• Revenue Growth: 7.48%
• EPS Growth: 19.55%
• Country: IT
• Employees: 1,808
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.06
• Shares Outstanding: 50,417,416
• 10 Day Avg. Volume: 193,273
• 30 Day Avg. Volume: 377,057
• PEG Ratio: -0.03
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -65.97
• 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: €6.48
• Price Target Upside: 14.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €6.50 ▲(15.04% Upside)

Esprinet Spa's stock is supported by strong technical indicators and attractive valuation metrics, including a reasonable P/E ratio and high dividend yield. However, financial performance is a concern due to profitability and cash flow challenges, which slightly dampen the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth, even if modest, indicates the company's ability to maintain its market position and adapt to changing market demands, supporting long-term business stability.

Business Model

A diversified revenue model with multiple streams, including IT hardware and value-added services, enhances resilience and reduces dependency on a single income source, contributing to long-term sustainability.

Market Position

Being a leading distributor in a key region like Southern Europe provides competitive advantages, including strong brand recognition and established customer relationships, which are crucial for sustained growth.

Negative Factors

Profitability Challenges

Low profitability margins indicate difficulties in cost management and pricing power, which can hinder the company's ability to reinvest in growth and innovation over the long term.

Cash Flow Issues

Negative cash flows suggest operational inefficiencies and potential liquidity constraints, which could limit the company's capacity to fund operations and strategic initiatives.

High Leverage

Increased leverage heightens financial risk and can strain the company's balance sheet, potentially impacting its ability to secure favorable financing and invest in growth opportunities.

Esprinet Spa Business Overview & Revenue Model

Company Description

Esprinet S.p.A., together with its subsidiaries, engages in the wholesale distribution of information technology (IT) and consumer electronics primarily in Italy, Spain, Portugal, and rest of Europe. The company distributes home, leisure, and office products, such as air conditioning, audio, DIY and gardening, electricity and lighting, gaming, mobility, navigation, networking, printing, sports and leisure, TV and home cinema, and video surveillance and access control products. It also offers bags, backpacks, and suitcases; drones; home appliances; mobile phones and landline phones; monitors; musical instruments and DJ mixers; notebooks and tablets; papers and consumables; and photo and video devices. In addition, the company provides toys; audio, cabling, furniture, office, stationary, storage, and rack and power products; workstations; PC components; peripherals; scanners; and video projection products and smart boards. Further, it offers auto-ID and POS, cloud, cyber security, software, unified communication and collaboration, and wiring products; 3D printers, pens, and accessories; measuring instruments; and servers and systems. The company serves IT resellers, including value-added and corporate resellers, system integrators, dealers, specialized resellers, and retailers and E-tailers. Esprinet S.p.A. is based in Vimercate, Italy.

How the Company Makes Money

Esprinet generates revenue through a multi-faceted model primarily focused on wholesale distribution. Key revenue streams include the sale of IT hardware, software licensing, and consumer electronics products to retailers and resellers. The company also earns income from value-added services such as logistics, inventory management, and technical support. Significant partnerships with major technology brands enhance its product offerings and attract a broad customer base, while its established distribution network in Southern Europe allows it to capitalize on regional market demands. Additionally, Esprinet benefits from economies of scale, reducing costs and increasing profitability through efficient supply chain management.

Esprinet Spa Financial Statement Overview

Summary

Esprinet Spa demonstrates modest revenue growth and stable gross margins, but profitability and cash flow challenges persist. Increased leverage and low return on equity indicate financial risks, while negative cash flows suggest operational inefficiencies.

Income Statement

Esprinet Spa shows a modest revenue growth in the TTM period with a 1.09% increase, indicating a slight recovery from previous declines. The gross profit margin is stable at around 5.5%, but the net profit margin remains low at 0.51%, reflecting challenges in converting revenue into profit. The negative EBIT margin suggests operational inefficiencies, although the EBITDA margin is slightly positive, indicating some potential for operational improvement.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.38 in the TTM period, indicating higher leverage and potential financial risk. Return on equity is relatively low at 5.68%, suggesting limited profitability from shareholders' investments. The equity ratio stands at 20.91%, highlighting a moderate reliance on equity financing.

Cash Flow

Esprinet Spa faces challenges with negative operating and free cash flows in the TTM period, indicating cash management issues. The free cash flow to net income ratio is positive at 1.04, suggesting that free cash flow exceeds net income, but the negative operating cash flow to net income ratio highlights operational cash generation struggles.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.22B	4.14B	3.99B	4.68B	4.69B	4.49B
Gross Profit	233.25M	226.94M	218.44M	242.97M	231.89M	193.67M
EBITDA	61.84M	68.82M	35.82M	86.93M	83.05M	62.10M
Net Income	21.68M	21.52M	-11.88M	47.35M	44.18M	31.41M
Balance Sheet
Total Assets	1.78B	2.02B	1.84B	1.87B	1.92B	1.82B
Cash, Cash Equivalents and Short-Term Investments	179.01M	216.35M	261.00M	172.19M	491.47M	558.93M
Total Debt	516.80M	262.28M	249.00M	265.68M	273.81M	265.98M
Total Liabilities	1.41B	1.63B	1.47B	1.47B	1.54B	1.43B
Stockholders Equity	373.22M	389.25M	367.41M	409.22M	386.12M	386.87M
Cash Flow
Free Cash Flow	-92.94M	-3.20M	154.55M	-263.84M	15.81M	70.63M
Operating Cash Flow	-89.77M	2.77M	168.04M	-251.41M	21.65M	77.61M
Investing Cash Flow	-2.81M	-5.61M	-19.95M	-19.06M	-17.02M	-44.29M
Financing Cash Flow	107.98M	-41.80M	-59.39M	-48.82M	-72.09M	61.83M

Esprinet Spa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:PRT, the sentiment is Positive. The current price of 5.65 is below the 20-day moving average (MA) of 5.80, below the 50-day MA of 5.68, and above the 200-day MA of 4.69, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 14.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:PRT.

Esprinet Spa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGV	71 Outperform	€290.18M	15.39	―	2.83%	-24.28%	-57.55%
PRT	67 Neutral	€276.71M	12.96	5.83%	7.08%	7.48%	19.55%
IOT	62 Neutral	€445.47M	-28.56	-3.24%	―	1.84%	-22.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%