Natuzzi SPA (NTZ) AI Stock Analysis

• Market Cap: $37.17M
• Dividend Yield: N/A
• Average Volume (3M): 3.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -2.91%
• EPS Growth: 3.98%
• Country: US
• Employees: 3,205
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -1.50
• Shares Outstanding: 11,014,609
• 10 Day Avg. Volume: 793
• 30 Day Avg. Volume: 3,780
• PEG Ratio: -0.94
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.67
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $3.50 ▲(3.55%Upside)

Natuzzi SPA's overall stock score is heavily influenced by its weak financial performance and technical analysis, both of which indicate significant challenges and bearish sentiment. Valuation metrics further highlight the company's financial struggles, while the earnings call provides a mixed but somewhat positive outlook, slightly improving the overall score.

Natuzzi SPA Business Overview & Revenue Model

Company Description

Natuzzi S.p.A. engages in the design, manufacture, and marketing of leather and fabric upholstered furniture through its own and franchised stores worldwide. It operates through two segments, Natuzzi Brand and Private Label. The company's products primarily include stationary furniture, such as sofas, loveseats, and armchairs; sectional furniture; motion furniture; sofa beds; occasional chairs, including recliners and massage chairs; home furnishing accessories, including coffee tables, lamps, rugs, and wall units; and home accessories, which include vases, mirrors, magazines racks, trays, and decorative objects. It also sells polyurethane foam and leather by-products. As of December 31, 2021, it operated 253 Natuzzi Italia stores; 72 Divani&Divani by Natuzzi stores; and 326 Natuzzi Editions stores. The company was formerly known as Industrie Natuzzi S.p.A. and changed its name to Natuzzi S.p.A. in June 2002. Natuzzi S.p.A. was incorporated in 1959 and is headquartered in Santeramo in Colle, Italy.

How the Company Makes Money

Natuzzi makes money primarily through the sale of its furniture products, which are distributed globally across its retail network. The company's revenue streams include direct sales through Natuzzi-branded stores and online platforms, as well as wholesale distribution to third-party retailers. Natuzzi also engages in strategic partnerships and collaborations to expand its market presence and enhance brand visibility. Factors contributing to its earnings include its strong brand reputation, a diverse product portfolio, and a focus on design and quality, which drive customer demand and loyalty.

Natuzzi SPA Financial Statement Overview

Summary

Natuzzi SPA faces significant financial challenges, with declining revenues and persistent losses impacting its overall financial health. The balance sheet shows high leverage and decreasing equity, which could exacerbate financial stress. Cash flow issues further limit the company's ability to invest in growth or manage debt efficiently.

Income Statement

Natuzzi SPA's revenue has been declining from $468.5M in 2022 to $318.8M in 2024, indicating a significant revenue contraction. The company has reported negative EBIT and net income for recent years, reflecting operational losses and challenges in achieving profitability. Gross profit margins have also decreased, indicating pressures on cost management. The consistent negative net profit margin and EBIT margin highlight ongoing profitability struggles.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating higher financial leverage, which poses a risk given the company's profitability issues. Equity has decreased from 2023 to 2024, reducing financial stability. However, the equity ratio remains moderate, suggesting some degree of asset backing. The decline in total assets and equity over the years flags potential liquidity issues.

Cash Flow

The company's cash flow statement reveals negative free cash flow in recent years, indicating insufficient cash generation to cover capital expenditures. Operating cash flow has also diminished, reflecting reduced cash generation from core operations. The weak operating cash flow to net income ratio further highlights challenges in converting income to cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
318.80M	328.62M	468.50M	427.40M	328.30M
	Gross Profit
115.70M	120.36M	164.30M	153.80M	103.10M
	EBIT
-6.27M	-9.50M	8.40M	-12.57M	-8.70M
	EBITDA
14.33M	14.41M	31.68M	8.80M	9.56M
	Net Income Common Stockholders
-15.15M	-16.07M	1.30M	3.58M	-24.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.32M	33.61M	54.48M	53.47M	48.19M
	Total Assets
319.02M	338.35M	368.60M	390.00M	356.00M
	Total Debt
99.80M	102.51M	98.39M	110.72M	100.83M
	Net Debt
79.47M	68.90M	43.92M	57.25M	52.64M
	Total Liabilities
260.82M	265.06M	276.00M	306.20M	280.70M
	Stockholders Equity
54.01M	68.94M	87.90M	82.30M	74.30M
Cash Flow		Free Cash Flow
-5.41M	-8.61M	9.09M	-4.49M	9.43M
	Operating Cash Flow
1.72M	3.21M	18.70M	500.00K	12.30M
	Investing Cash Flow
-4.32M	-7.88M	-4.70M	7.00M	2.30M
	Financing Cash Flow
-12.76M	-15.70M	-13.50M	-2.00M	-5.60M

Natuzzi SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTZ, the sentiment is Negative. The current price of 3.38 is below the 20-day moving average (MA) of 3.91, below the 50-day MA of 3.92, and below the 200-day MA of 4.37, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 13.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTZ.

Natuzzi SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	73 Outperform	$188.47M	14.07	9.48%	1.90%	7.24%	-9.51%
LZB	72 Outperform	$1.56B	16.22	9.84%	2.31%	1.81%	8.09%
ETD	69 Neutral	$696.78M	12.15	12.09%	5.69%	-6.32%	-18.35%
Sector *	62 Neutral	$16.17B	10.72	-5.56%	3.15%	1.66%	-23.91%
MLKN	58 Neutral	$1.15B	39.82	2.28%	4.43%	-2.68%	-56.16%
BSET	54 Neutral	$135.78M	―	-3.83%	5.13%	-11.78%	-13.89%
NTZ	45 Neutral	$37.17M	―	-25.01%	―	-2.91%	3.98%