WBAG:PC

Stock Analysis Report

Executive Summary

Pirelli & C. S.p.A. manufactures and supplies tires for cars, motorcycles, and bicycles worldwide.

Snowflake

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Pirelli & C's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.3%

PC

-2.2%

AT Auto Components

-0.6%

AT Market


1 Year Return

-14.5%

PC

7.3%

AT Auto Components

2.0%

AT Market

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

Return vs Market: PC underperformed the Austrian Market which returned 2% over the past year.


Shareholder returns

PCIndustryMarket
7 Day-2.3%-2.2%-0.6%
30 Day-4.2%8.1%3.0%
90 Day17.9%23.0%6.7%
1 Year-11.8%-14.5%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 Pirelli & C's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pirelli & C undervalued compared to its fair value and its price relative to the market?

12.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PC (€5.31) is trading above our estimate of fair value (€2.79)

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


Price To Earnings Ratio

PE vs Industry: PC is poor value based on its PE Ratio (12x) compared to the Auto Components industry average (11.6x).

PE vs Market: PC is good value based on its PE Ratio (12x) compared to the Austrian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: PC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: PC is good value based on its PB Ratio (1.1x) compared to the XE Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Pirelli & C forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PC's forecast earnings growth (6.1% per year) is above the savings rate (0.5%).

Earnings vs Market: PC's earnings (6.1% per year) are forecast to grow slower than the Austrian market (8.4% per year).

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

Revenue vs Market: PC's revenue (3.6% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: PC's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PC's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Pirelli & C performed over the past 5 years?

56.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PC has high quality earnings.

Growing Profit Margin: PC's current net profit margins (7.7%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: PC's earnings have grown significantly by 56.6% per year over the past 5 years.

Accelerating Growth: PC's earnings growth over the past year (1.6%) is below its 5-year average (56.6% per year).

Earnings vs Industry: PC earnings growth over the past year (1.6%) exceeded the Auto Components industry -8.3%.


Return on Equity

High ROE: PC's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pirelli & C's financial position?


Financial Position Analysis

Short Term Liabilities: PC's short term assets (€3.5B) exceeds its short term liabilities (€3.1B)

Long Term Liabilities: PC's short term assets (3.5B) do not cover its long term liabilities (5.6B)


Debt to Equity History and Analysis

Debt Level: PC's debt to equity ratio (107.9%) is considered high

Reducing Debt: Insufficient data to determine if PC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PC's debt is well covered by operating cash flow (20.5%).

Interest Coverage: PC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: PC's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Pirelli & C's current dividend yield, its reliability and sustainability?

3.33%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.7%markettop25%4.3%industryaverage3.4%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: PC's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Austrian market (1.69%).

High Dividend: PC's dividend (3.33%) is low compared to the top 25% of dividend payers in the Austrian market (4.26%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), PC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PC's dividends in 3 years are forecast to be well covered by earnings (35.3% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Marco Tronchetti Provera (71yo)

27.8yrs

Tenure

€5,048,852

Compensation

Mr. Marco Tronchetti Provera serves as Executive Vice Chairman and Chief Executive Officer at Pirelli & C. S.p.A. He has been the Chief Executive Officer of PIRELLI & C. Società per Azioni (C. S.P.A) since ...


CEO Compensation Analysis

Compensation vs Market: Marco's total compensation ($USD5.58M) is above average for companies of similar size in the Austrian market ($USD2.17M).

Compensation vs Earnings: Marco's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: PC's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

59yo

Average Age

Experienced Board: PC's board of directors are considered experienced (3.9 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.


Recent Insider Transactions

Buy€256,25004 Jun 19
CAMFIN S.p.A.
EntityCompany
Shares50,000
Max Price€5.13
Buy€988,33903 Jun 19
CAMFIN S.p.A.
EntityCompany
Shares192,000
Max Price€5.15
Buy€1,000,66331 May 19
CAMFIN S.p.A.
EntityCompany
Shares194,837
Max Price€5.14
Buy€297,28012 Dec 18
CAMFIN S.p.A.
EntityCompany
Shares50,000
Max Price€5.95

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Management Team

  • Marco Tronchetti Provera (71yo)

    Executive Deputy Chairman & CEO

    • Tenure: 27.8yrs
    • Compensation: €5.05m
  • Maurizio Abet (51yo)

    Senior VP of Communication

    • Tenure: 2.6yrs
  • Nicola Verdicchio (57yo)

    Senior VP & Chief Legal Officer

    • Tenure: 2.6yrs
  • Valeria Leone (58yo)

    Senior VP of Investor Relations

    • Tenure: 2.6yrs
  • Francesco Tanzi (55yo)

    Executive VP & CFO

    • Tenure: 2.6yrs
  • Massimo Battaini (58yo)

    Senior VP of Marketing & Supply Chain

    • Tenure: 0yrs
  • Maurizio Boiocchi (69yo)

    Strategic Advisor and Executive VP of Technology & Innovation

    • Tenure: 2.6yrs
  • Andrea Livio Casaluci

    General Manager of Operations

    • Tenure: 1.5yrs
  • Roberto Righi (54yo)

    Executive Vice President of Commercial Replacement

    • Tenure: 2.6yrs
  • Davide Sala

    Executive VP and Chief Human Resources & Organization Officer

    • Tenure: 0yrs

Board Members

  • Ze'ev Goldberg (59yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: €90.00k
  • Domenico De Sole (75yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: €150.00k
  • Marco Tronchetti Provera (71yo)

    Executive Deputy Chairman & CEO

    • Tenure: 27.8yrs
    • Compensation: €5.05m
  • Giorgio Bruno (59yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: €1.37m
  • Xin Ping Bai (51yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: €145.00k
  • Xingqiang Yang (52yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: €90.00k
  • Francesco Fallacara (55yo)

    Chairman of Board of Statutory Auditors

    • Tenure: 4.5yrs
  • Haisu Tao (70yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: €90.00k
  • Fan Xiaohua (45yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: €90.00k
  • Ning Gaoning (61yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: €197.34k

Company Information

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


Key Information

  • Name: Pirelli & C. S.p.A.
  • Ticker: PC
  • Exchange: WBAG
  • Founded: 1872
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: €5.322b
  • Shares outstanding: 1.00b
  • Website: https://www.pirelli.com

Number of Employees


Location

  • Pirelli & C. S.p.A.
  • Viale Piero e Alberto Pirelli n. 25
  • Milan
  • Milan
  • 20126
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 2017
0P1RLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2017
PIRCBIT (Borsa Italiana)YesOrdinary SharesITEUROct 2017
2PIDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2017
PIRCMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2017
PLLI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2017

Biography

Pirelli & C. S.p.A. manufactures and supplies tires for cars, motorcycles, and bicycles worldwide. The company provides premium, specialty, super specialty, and prestige tires. It offers automotive product ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 22:11
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.