Saipem (SAPMY) AI Stock Analysis

43 Followers

Saipem

(Other OTC:SAPMY)

Select Model

Rating:69Neutral

Price Target:$1.00▲(5.82% Upside)

Action:downgraded

Date:11/05/26

The score is driven primarily by strong financial recovery, improved profitability, deleveraging, and positive current cash generation. These strengths are partly offset by volatile cash flow, cyclical industry exposure, weak near-term momentum, and a relatively high P/E ratio.

Positive Factors

Profitability TurnaroundThe return to positive net income across multiple reporting periods indicates a meaningful recovery from the prior loss-making phase. Sustained profitability improves internal funding capacity, supports balance-sheet repair, and provides a stronger base for executing future energy infrastructure projects.

Negative Factors

Thin Net MarginsSaipem converts only a small portion of revenue into bottom-line earnings, leaving limited protection against project cost overruns, delays, or weaker operating conditions. Thin net profitability also constrains retained earnings and makes the quality of the recent turnaround more sensitive to execution discipline.

Saipem (SAPMY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $9.02B
Dividend Yield: 4.19%
Average Volume (3M): 5,600
Price to Earnings (P/E): 31.2
Beta (1Y): 0.69
Revenue Growth: 9.32%
EPS Growth: -12.64%
Country: US
Employees: 30,409
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Equipment & Services

Saipem Business Overview & Revenue Model

Company Description

Saipem SpA provides energy and infrastructure solutions worldwide. It operates through Asset Based Services, Offshore Drilling, and Energy Carriers segments. The company offers development of subsea fields and pipelaying; installation and lifting of...

How the Company Makes Money

Saipem makes money primarily by executing contracted engineering, procurement, construction, and installation (EPCI) projects for customers in the energy sector. Revenue is largely generated from (1) Offshore E&C-type work, where Saipem is paid under...

Saipem Earnings Call Summary

Earnings Call Date:Oct 23, 2024(Q3-2024)|% Change Since:126.08%|Next Earnings Date:Oct 24, 2018

Earnings Call SentimentPositive

The earnings call reflects a strong performance in Q3 2024, with significant achievements in order intake, revenue growth, and cash flow generation. While there are challenges related to the temporary suspension in Saudi Arabia and legacy onshore projects, the company's upgraded guidance and robust backlog provide a positive outlook.

Positive Updates

Record Order Intake and Backlog

Saipem recorded the highest quarterly order intake since Q2 2019, with an order intake of EUR 6.4 billion, and a backlog standing at EUR 33 billion, an all-time high.

Negative Updates

Impact of Saudi Aramco's Temporary Suspension

The temporary suspension impacted the drilling operations, particularly for the Perro Negro fleet, leading to adjustments in operations and financial expectations.

Company Guidance

In the recent earnings call, Saipem executive Alessandro Puliti provided a robust outlook for the company's performance in 2024. For the third quarter, Saipem achieved the highest quarterly order intake since Q2 2019, with revenues reaching €3.7 billion, marking a 23% year-on-year increase. The company also reported an EBITDA of €340 million, reflecting a 48% year-on-year growth. The EBITDA margin improved by 40 basis points to 9.2%, supported by the E&C and drilling offshore activities. Saipem's net cash flow generation stood at €115 million, with a significant order intake of €6.4 billion, leading to a record high backlog of €33 billion. Based on these strong results, Saipem upgraded its 2024 guidance, expecting revenues to exceed €14 billion and EBITDA to surpass €1.3 billion, driven by the performance in offshore E&C and despite some impact from the temporary suspension of operations in Saudi Arabia.

Saipem Financial Statement Overview

Summary

Strong turnaround, with 77% TTM revenue growth, materially improved margins, lower leverage, and positive operating and free cash flow. The score is tempered by thin net margins, cyclical exposure, and volatile cash-flow trends.

Income Statement

86Very Positive

Balance Sheet

78Positive

Cash Flow

69Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.64B	14.89B	14.55B	11.88B	9.99B	6.53B
Gross Profit	5.06B	1.81B	4.43B	3.69B	3.31B	-136.00M
EBITDA	1.72B	1.64B	1.32B	899.98M	538.98M	-1.73B
Net Income	267.00M	297.77M	306.00M	179.00M	-337.30M	-2.74B
Balance Sheet
Total Assets	5.46B	14.61B	14.52B	12.87B	12.40B	13.14B
Cash, Cash Equivalents and Short-Term Investments	1.08B	2.35B	2.50B	2.22B	2.28B	1.92B
Total Debt	1.19B	3.10B	3.02B	3.12B	2.13B	2.83B
Total Liabilities	3.15B	11.97B	11.99B	10.47B	10.31B	11.19B
Stockholders Equity	2.31B	2.64B	2.52B	2.39B	2.21B	326.00M
Cash Flow
Free Cash Flow	1.21B	1.11B	735.00M	114.00M	-990.00M	-141.00M
Operating Cash Flow	1.50B	1.44B	1.06B	586.00M	-477.00M	90.00M
Investing Cash Flow	-712.00M	-614.74M	-542.00M	-175.00M	5.00M	-490.00M
Financing Cash Flow	-550.00M	-1.18B	-544.00M	-282.00M	871.00M	331.00M

Saipem Technical Analysis

Technical Analysis SentimentNegative

Last Price0.94

Price Trends

50DMA0.99Negative

100DMA1.00Negative

200DMA0.95Negative

Market Momentum

MACD-0.01Positive

RSI39.87Neutral

STOCH12.28Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAPMY, the sentiment is Negative. The current price of 0.94 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 0.99, and below the 200-day MA of 0.95, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAPMY.

Saipem Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

SAPMY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	76Outperform	$25.43B	20.17	38.54%	0.31%	7.95%	42.53%
SAPMY	69Neutral	$9.44B	31.22	10.42%	4.19%	9.32%	-12.64%
BKR	66Neutral	$49.07B	16.78	14.83%	1.88%	3.71%	0.14%
HAL	66Neutral	$27.24B	13.79	18.46%	2.08%	1.53%	58.46%
SLB	66Neutral	$75.22B	24.55	11.77%	2.30%	4.57%	-20.58%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOV	57Neutral	$6.42B	44.51	2.31%	2.44%	-0.96%	-59.98%

* Energy Sector Average

Performance Comparison

SAPMY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SAPMY	Saipem Spa	0.94	0.42	81.38%
BKR	Baker Hughes Company	48.86	0.88	1.84%
FTI	TechnipFMC	64.92	21.37	49.08%
HAL	Halliburton Company	32.76	6.00	22.43%
NOV	NOV Inc.	17.80	2.43	15.80%
SLB	SLB N.V.	50.91	14.85	41.19%

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: Nov 04, 2026

Saipem AI Stock Analysis