Prysmian SpA (PRY) AI Stock Analysis

• Market Cap: €16.04B
• Dividend Yield: 1.45%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.13
• Revenue Growth: 20.34%
• EPS Growth: 25.32%
• Country: IT
• Employees: 33,740
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.52
• Shares Outstanding: 295,785,500
• 10 Day Avg. Volume: 1,591,415
• 30 Day Avg. Volume: 1,433,545
• PEG Ratio: -3.65
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.17
• 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: €69.53
• Price Target Upside: 27.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: €60.00 ▲( 10.17% Upside)

Prysmian SpA’s stock is supported by strong revenue growth and efficient cash flow management. However, declining profitability margins and moderate leverage pose challenges. The stock is currently experiencing positive market momentum and is fairly valued, making it a reasonable investment option with some risks to consider.

Positive Factors

Financial Performance

Transmission revenues in 4Q24 rose 33% YoY and were 14% higher than consensus, with EBITDA also 10% higher than estimates.

Growth Outlook

Growth will be primarily driven by Transmission, and is based on existing backlog with therefore very high visibility.

Market Potential

The company offering an attractive growth profile, strong cash generation, with very high visibility on its main growth driver (Transmission), and achievable targets with some upside potential in the other segments.

Negative Factors

Earnings Impact

The bottom line was negatively impacted by some one-off/non-cash items deriving from the integration of Encore Wire.

Market Reaction

The announcement of a pause in the US listing process and an unexciting outlook for Power Grid and Electrification have not been appreciated by the market.

Revenue Growth

On Electrification, the slowdown in some cyclical markets, plus the uncertainty around the tariffs, could temporarily have a negative impact on revenue growth.

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 SpA generates revenue through the sale of its cable and system solutions across its Energy and Telecom sectors. The Energy segment, which includes power distribution and transmission cables, serves utilities, industrial customers, and infrastructure projects, forming a significant portion of its revenue. Within the Telecom sector, Prysmian earns money by providing optical fiber cables and connectivity products to telecommunications operators and data centers, which are essential for broadband network deployment. The company also benefits from strategic partnerships and long-term contracts with governments and private entities, contributing to steady revenue streams. Key factors contributing to its earnings include its global presence, extensive product portfolio, and focus on innovation and technology in cable solutions.

Prysmian SpA Financial Statement Overview

Summary

Prysmian SpA shows robust revenue growth and strong cash flow management, but faces challenges with declining profitability margins and a TTM EBIT loss. The balance sheet indicates moderate leverage, but increasing debt levels require attention.

Income Statement

Prysmian SpA has shown a consistent increase in total revenue over the years, with a TTM (Trailing-Twelve-Months) revenue of €18.1 billion, marking a growth of 6.4% from the previous year. However, TTM gross profit margin has decreased to 30.3% from the previous year's 36.9%, and the TTM EBIT margin is negative due to an EBIT loss. The net profit margin is 3.8% for TTM, slightly below the previous year's 4.3%. Despite revenue growth, the decline in margins and EBIT loss are concerning.

Balance Sheet

The company's debt-to-equity ratio stands at 1.1, indicating a moderate level of leverage. The return on equity is 14% for TTM, which is healthy but slightly down from previous years. The equity ratio is 26.9%, suggesting that the company relies more on debt financing. While the balance sheet shows stability, the increasing debt level and slight decline in ROE could pose risks.

Cash Flow

Prysmian SpA has demonstrated strong operating cash flow growth, with TTM operating cash flow at €2.04 billion. The free cash flow has grown by 4.1% from the previous year. The operating cash flow to net income ratio is robust at 2.94, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 1.71 further highlights efficient cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
18.11B	17.03B	15.35B	16.07B	12.74B	10.02B
	Gross Profit
5.49B	6.29B	5.70B	5.45B	4.07B	3.62B
	EBIT
-794.00K	1.21B	860.00M	849.00M	572.00M	353.00M
	EBITDA
2.81B	1.66B	1.45B	1.17B	881.00M	787.00M
	Net Income Common Stockholders
694.00M	729.00M	529.00M	504.00M	308.00M	178.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
580.00M	1.08B	1.85B	1.57B	1.96B	1.19B
	Total Assets
18.49B	18.20B	13.32B	12.76B	12.02B	9.93B
	Total Debt
5.48B	5.38B	3.10B	3.07B	3.73B	3.17B
	Net Debt
4.95B	4.35B	1.35B	1.78B	2.03B	2.01B
	Total Liabilities
13.32B	12.90B	9.35B	8.98B	8.93B	7.51B
	Stockholders Equity
4.97B	5.09B	3.78B	3.58B	2.92B	2.26B
Cash Flow		Free Cash Flow
1.19B	1.14B	792.00M	584.00M	494.00M	443.00M
	Operating Cash Flow
2.04B	1.93B	1.42B	1.04B	777.00M	705.00M
	Investing Cash Flow
-4.98B	-4.85B	-491.00M	-498.00M	-582.00M	-250.00M
	Financing Cash Flow
2.32B	2.20B	-424.00M	-961.00M	335.00M	-325.00M

Prysmian SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 54.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 54.46 is above the 20-day moving average (MA) of 52.21, above the 50-day MA of 50.56, and below the 200-day MA of 59.40, indicating a neutral trend. The MACD of 1.81 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 55.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:PRY.

Prysmian SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRY	71 Outperform	€16.04B	22.92	15.32%	1.45%	20.34%	25.32%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
0N54		€7.10B	8.55	16.17%	4.25%	―	―
0NRE		€82.18B	11.59	25.20%	5.32%	―	―
0MHC		€2.62B	13.76	8.74%	5.74%	―	―
0HXB		€17.50B	9.70	10.53%	4.27%	―	―