Prysmian SpA (PRY) AI Stock Analysis

• Market Cap: €25.75B
• Dividend Yield: 0.9%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.09
• Revenue Growth: 21.75%
• EPS Growth: 89.66%
• Country: IT
• Employees: 33,740
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.01
• Shares Outstanding: 296,356,570
• 10 Day Avg. Volume: 1,147,959
• 30 Day Avg. Volume: 1,076,005
• 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: €93.22
• Price Target Upside: 4.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €94.00 ▲(5.59% Upside)

Prysmian SpA's stock score is primarily driven by strong financial performance and positive technical indicators. The company's robust revenue growth and profitability are significant strengths, although the decline in free cash flow and high debt levels are concerns. The stock's positive technical trend supports its attractiveness, but its high valuation and low dividend yield limit its appeal to value and income-focused investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Market Position

As a leading player in its industry, Prysmian benefits from a strong market position, enabling it to leverage economies of scale and maintain competitive advantages.

Return on Equity

A strong return on equity indicates efficient management of shareholder funds, enhancing investor confidence and supporting sustainable growth.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth can limit the company's ability to invest in growth opportunities and manage debt, impacting long-term financial health.

High Debt Levels

High debt levels can strain financial resources, increasing risk and potentially limiting the company's ability to respond to market changes or invest in growth.

EBIT Margin Decrease

A decrease in EBIT margin suggests rising costs or pricing pressures, which could impact profitability and require strategic adjustments to maintain margins.

Prysmian SpA Business Overview & Revenue Model

Company Description

Prysmian S.p.A., together with its subsidiaries, produces, distributes, and sells cables and systems, and related accessories for the energy and telecommunications industries worldwide. The company operates through three segments: Projects, Energy, and Telecom. The Projects segment designs, produces, and installs high and extra high voltage cables for electricity transmission from power plants, and within transmission and primary distribution grids; high voltage cabling systems for terrestrial and submarine applications; submarine cable solutions for power transmission and distribution; data transmission cables; and umbilical cables, hoses, and electrical, optical, and signalling components for oil well management, as well as offers services for terrestrial and submarine interconnections between various countries and between offshore wind farms and the mainland, which is used for generation and distribution of electricity. The Energy segment includes trade and installers; power distribution and overhead transmission lines; industrial and network components for various industries, which comprise oil and gas, downhole technology, elevators, automotive, nuclear, mining, marine, water, and infrastructure sectors, as well as for renewable energy field, military, railways, and cranes; and provides asset monitoring solutions. The Telecom segment manufactures cable systems and connectivity products, such as optical fiber, optical cables, connectivity components and accessories, optical ground wires, and copper cables that are used in telecommunication networks. Prysmian S.p.A. was founded in 1879 and is headquartered in Milan, Italy.

How the Company Makes Money

Prysmian generates revenue primarily through the sale of its cable products and related services. The company has a diversified revenue model that includes several key streams: the Energy segment, which comprises high voltage, medium voltage, and low voltage cables for utility companies and industrial applications; and the Telecommunications segment, which focuses on the production of optical fiber and copper cables for telecommunication networks. Significant partnerships with utility providers and telecommunications companies enhance its market reach and sales. Additionally, Prysmian benefits from long-term contracts and projects, including infrastructure developments and renewable energy initiatives, which contribute to stable and recurring revenue. The company's global presence and ability to innovate in cable technology further bolster its earnings potential.

Prysmian SpA Financial Statement Overview

Summary

Prysmian SpA demonstrates strong revenue growth and profitability, with stable margins and improved leverage. However, the significant decline in free cash flow growth and high debt levels pose potential risks. The company maintains a solid return on equity, indicating effective equity utilization, but needs to address cash flow challenges to sustain long-term financial health.

Income Statement

Prysmian SpA shows a strong revenue growth trajectory with a 4.15% increase in TTM, following a robust 10.89% annual growth in 2024. The gross profit margin remains healthy at 33.51% TTM, although slightly down from 36.92% in 2024. Net profit margin is stable at 3.99% TTM, reflecting consistent profitability. However, the EBIT margin has decreased to 11.26% TTM from 7.02% in 2024, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.97 TTM from 1.06 in 2024, indicating better leverage management. Return on equity is strong at 14.90% TTM, showcasing effective use of equity. The equity ratio is stable, reflecting a balanced asset structure. However, the high total debt level remains a potential risk.

Cash Flow

Free cash flow growth has declined by 67.4% TTM, a significant drop from the previous year's growth. The operating cash flow to net income ratio is stable at 0.29 TTM, indicating consistent cash generation relative to net income. However, the free cash flow to net income ratio has decreased to 0.56 TTM, suggesting reduced cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.86B	17.03B	15.35B	16.07B	12.74B	10.02B
Gross Profit	6.32B	6.29B	5.70B	5.45B	4.07B	3.62B
EBITDA	2.73B	1.66B	1.45B	1.17B	881.00M	787.00M
Net Income	753.00M	729.00M	529.00M	504.00M	308.00M	178.00M
Balance Sheet
Total Assets	18.67B	18.20B	13.32B	12.76B	12.02B	9.93B
Cash, Cash Equivalents and Short-Term Investments	590.00M	1.08B	1.85B	1.57B	1.96B	1.19B
Total Debt	5.26B	5.38B	3.10B	3.07B	3.73B	3.17B
Total Liabilities	13.06B	12.90B	9.35B	8.98B	8.93B	7.51B
Stockholders Equity	5.42B	5.09B	3.78B	3.58B	2.92B	2.26B
Cash Flow
Free Cash Flow	1.18B	1.14B	792.00M	584.00M	494.00M	443.00M
Operating Cash Flow	2.12B	1.93B	1.42B	1.04B	777.00M	705.00M
Investing Cash Flow	-5.75B	-4.85B	-491.00M	-498.00M	-582.00M	-250.00M
Financing Cash Flow	3.05B	2.20B	-424.00M	-961.00M	335.00M	-325.00M

Prysmian SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:PRY, the sentiment is Positive. The current price of 89.02 is below the 20-day moving average (MA) of 89.11, above the 50-day MA of 83.71, and above the 200-day MA of 65.11, indicating a neutral trend. The MACD of 1.68 indicates Positive momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 53.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:PRY.

Prysmian SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAIRE	73 Outperform	€4.31B	16.91	42.37%	2.73%	30.91%	40.89%
ELN	72 Outperform	€930.64M	21.99	15.29%	1.94%	-18.41%	-15.30%
IP	72 Outperform	€4.37B	20.42	10.96%	0.75%	-4.26%	-9.37%
COM	71 Outperform	€1.06B	17.68	―	2.16%	-20.36%	-23.31%
PRY	69 Neutral	€25.75B	34.26	21.00%	0.90%	21.75%	89.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TES	46 Neutral	€66.79M	―	3.93%	―	-2.77%	2.22%