Pirelli & C. S.p.A.
Pirelli & C. S.p.A. Fundamental Analysis
Pirelli & C. S.p.A. (PLLIF) shows weak financial fundamentals with a PE ratio of 11.38, profit margin of 7.83%, and ROE of 9.29%. The company generates $6.5B in annual revenue with weak year-over-year growth of 0.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PLLIF's fundamental strength across five key dimensions:
Efficiency Score
WeakPLLIF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPLLIF trades at attractive valuation levels.
Growth Score
WeakPLLIF faces weak or negative growth trends.
Financial Health Score
ExcellentPLLIF maintains a strong and stable balance sheet.
Profitability Score
WeakPLLIF struggles to sustain strong margins.
Key Financial Metrics
Is PLLIF Expensive or Cheap?
P/E Ratio
PLLIF trades at 11.38 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PLLIF's PEG of 1.00 indicates fair valuation.
Price to Book
The market values Pirelli & C. S.p.A. at 1.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.90 times EBITDA. This is generally considered low.
How Well Does PLLIF Make Money?
Net Profit Margin
For every $100 in sales, Pirelli & C. S.p.A. keeps $7.83 as profit after all expenses.
Operating Margin
Core operations generate 13.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.29 in profit for every $100 of shareholder equity.
ROA
Pirelli & C. S.p.A. generates $4.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pirelli & C. S.p.A. produces operating cash flow of $1.26B, showing steady but balanced cash generation.
Free Cash Flow
Pirelli & C. S.p.A. generates strong free cash flow of $875.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.88 in free cash annually.
FCF Yield
PLLIF converts 15.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How PLLIF Stacks Against Its Sector Peers
| Metric | PLLIF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.38 | 24.18 | Better (Cheaper) |
| ROE | 9.29% | 1174.00% | Weak |
| Net Margin | 7.83% | 783.00% | Weak |
| Debt/Equity | 0.66 | 0.79 | Neutral |
| Current Ratio | 1.21 | 2.59 | Neutral |
| ROA | 4.04% | -8308.00% (disorted) | Weak |
PLLIF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pirelli & C. S.p.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1071.70%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Growth, Discretionary
Declining