WBAG:BRE

Stock Analysis Report

Executive Summary

Brembo S.p.A., together with its subsidiaries, designs, develops, and produces braking systems and components under the Brembo, Breco, AP Racing, Bybre, and Marchesini brands for cars, motorbikes, and industrial vehicles and machinery.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Brembo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

BRE

-2.2%

AT Auto Components

-0.6%

AT Market


1 Year Return

15.7%

BRE

7.3%

AT Auto Components

2.0%

AT Market

Return vs Industry: BRE exceeded the Austrian Auto Components industry which returned 7.3% over the past year.

Return vs Market: BRE exceeded the Austrian Market which returned 2% over the past year.


Shareholder returns

BREIndustryMarket
7 Day0.5%-2.2%-0.6%
30 Day17.8%8.1%3.0%
90 Day31.7%23.0%6.7%
1 Year18.2%15.7%11.3%7.3%5.7%2.0%
3 Yearn/a-1.6%-9.7%46.0%32.8%
5 Yearn/a24.5%10.2%65.2%42.0%

Price Volatility Vs. Market

How volatile is Brembo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Brembo undervalued compared to its fair value and its price relative to the market?

15.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRE (€10.81) is trading above our estimate of fair value (€5.96)

Significantly Below Fair Value: BRE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRE is poor value based on its PE Ratio (15.4x) compared to the Auto Components industry average (11.6x).

PE vs Market: BRE is poor value based on its PE Ratio (15.4x) compared to the Austrian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: BRE is poor value based on its PEG Ratio (11.1x)


Price to Book Ratio

PB vs Industry: BRE is overvalued based on its PB Ratio (2.8x) compared to the XE Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Brembo forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRE's forecast earnings growth (1.4% per year) is above the savings rate (0.5%).

Earnings vs Market: BRE's earnings (1.4% per year) are forecast to grow slower than the Austrian market (8.4% per year).

High Growth Earnings: BRE's earnings are forecast to grow, but not significantly.

Revenue vs Market: BRE's revenue (2.9% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: BRE's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRE's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Brembo performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRE has high quality earnings.

Growing Profit Margin: BRE's current net profit margins (8.6%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: BRE's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: BRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BRE had negative earnings growth (-14.4%) over the past year, making it difficult to compare to the Auto Components industry average (-8.3%).


Return on Equity

High ROE: BRE's Return on Equity (17.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Brembo's financial position?


Financial Position Analysis

Short Term Liabilities: BRE's short term assets (€1.2B) exceeds its short term liabilities (€958.0M)

Long Term Liabilities: BRE's short term assets (1.2B) exceeds its long term liabilities (484.3M)


Debt to Equity History and Analysis

Debt Level: BRE's debt to equity ratio (41.2%) is considered high

Reducing Debt: BRE's debt to equity ratio has reduced from 110.8% to 41.2% over the past 5 years.

Debt Coverage: BRE's debt is well covered by operating cash flow (64.8%).

Interest Coverage: BRE's interest payments on its debt are well covered by EBIT (19.3x coverage).


Balance Sheet

Inventory Level: BRE has a high level of physical assets or inventory.

Debt Coverage by Assets: BRE's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Brembo's current dividend yield, its reliability and sustainability?

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.7%markettop25%4.3%industryaverage3.4%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: BRE's dividend (2.03%) is higher than the bottom 25% of dividend payers in the Austrian market (1.69%).

High Dividend: BRE's dividend (2.03%) is low compared to the top 25% of dividend payers in the Austrian market (4.26%).


Stability and Growth of Payments

Stable Dividend: BRE's dividends per share have been stable in the past 10 years.

Growing Dividend: BRE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.3%), BRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRE's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


Next Steps

Management

What is the CEO of Brembo's salary, the management and board of directors tenure and is there insider trading?

10.6yrs

Average management tenure


CEO

Daniele Schillaci 0

0.3yrs

Tenure

0

Mr. Daniele Schillaci has been Chief Executive Officer, Managing Director ?& Director at Brembo S.p.A. since July 1, 2019. Mr. Schillaci served as an Executive Vice President of Global Marketing and Sales, ...


Management Age and Tenure

10.6yrs

Average Tenure

Experienced Management: BRE's management team is seasoned and experienced (10.6 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

Experienced Board: BRE's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Cristina Bombassei

    Chief CSR Officer & Executive Director

    • Tenure: 22.8yrs
    • Compensation: €195.55k
  • Alberto Bombassei (79yo)

    Chairman & President

    • Tenure: 26.8yrs
    • Compensation: €5.20m
  • Matteo Tiraboschi

    Executive Deputy Chairman

    • Tenure: 8.4yrs
    • Compensation: €3.41m
  • Umberto Simonelli (37yo)

    Chief Legal & Corporate Affairs Officer and Company Secretary

    • Tenure: 10.8yrs
  • Daniele Schillaci

    CEO, MD & Director

    • Tenure: 0.3yrs
  • Giovanni Canavotto

    GM of Systems Division & Executive Director

    • Tenure: 0yrs

Board Members

  • Cristina Bombassei

    Chief CSR Officer & Executive Director

    • Tenure: 22.8yrs
    • Compensation: €195.55k
  • Alberto Bombassei (79yo)

    Chairman & President

    • Tenure: 26.8yrs
    • Compensation: €5.20m
  • Umberto Nicodano

    Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: €55.00k
  • Valerio Battista (62yo)

    Lead Independent Director

    • Tenure: 2.6yrs
  • Matteo Tiraboschi

    Executive Deputy Chairman

    • Tenure: 8.4yrs
    • Compensation: €3.41m
  • Daniele Schillaci

    CEO, MD & Director

    • Tenure: 0.3yrs
  • Raffaele Pagani

    Chairwoman of Board of Statutory Auditors

    • Tenure: 5.5yrs
    • Compensation: €61.73k
  • Barbara Borra

    Independent & Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: €65.00k
  • Laura Cioli

    Independent & Non-Executive Director

    • Tenure: 0yrs
  • Giovanni Canavotto

    GM of Systems Division & Executive Director

    • Tenure: 0yrs

Company Information

Brembo S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brembo S.p.A.
  • Ticker: BRE
  • Exchange: WBAG
  • Founded: 1961
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €3.519b
  • Shares outstanding: 325.19m
  • Website: https://www.brembo.com

Number of Employees


Location

  • Brembo S.p.A.
  • Kilometro Rosso Science and Technology Park
  • Viale Europa, 2
  • Stezzano
  • Bergamo
  • 24040
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BREBIT (Borsa Italiana)YesOrdinary SharesITEURJul 1995
0RPVLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1995
BRBO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1995
BRCADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1995
BREWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 1995

Biography

Brembo S.p.A., together with its subsidiaries, designs, develops, and produces braking systems and components under the Brembo, Breco, AP Racing, Bybre, and Marchesini brands for cars, motorbikes, and indu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 21:23
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.