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Pirelli & C

WBAG:PC
Snowflake Description

Moderate growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PC
WBAG
€6B
Market Cap
  1. Home
  2. AT
  3. Automobiles
Company description

Pirelli & C. S.p.A. produces and supplies tires for cars, motorcycles, and bicycles in Europe, North American free trade area, the Asia-Pacific, LATAM, the Middle East, Africa, India, Russia, CIS, and South America. The last earnings update was 14 days ago. More info.


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PC Share Price and Events
7 Day Returns
1.7%
WBAG:PC
6.9%
Europe Auto Components
3.4%
AT Market
1 Year Returns
-8.4%
WBAG:PC
-21.7%
Europe Auto Components
-2%
AT Market
PC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pirelli & C (PC) 1.7% 7.1% 5.7% -8.4% - -
Europe Auto Components 6.9% 10.9% 19.9% -21.7% -5.7% 6%
AT Market 3.4% 6% 10.1% -2% 43.4% 29.5%
1 Year Return vs Industry and Market
  • PC outperformed the Auto Components industry which returned -21.7% over the past year.
  • PC underperformed the Market in Austria which returned -2% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

PC Value

 Is Pirelli & C undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Pirelli & C to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Pirelli & C.

WBAG:PC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:PC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 9%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.157 (1 + (1- 24%) (74.52%))
1.545
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.54
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (1.545 * 9.02%)
14.44%

Discounted Cash Flow Calculation for WBAG:PC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pirelli & C is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:PC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 14.44%)
2019 448.60 Analyst x9 391.99
2020 592.50 Analyst x10 452.40
2021 682.45 Analyst x4 455.32
2022 750.95 Est @ 10.04% 437.79
2023 804.85 Est @ 7.18% 410.01
2024 846.53 Est @ 5.18% 376.82
2025 878.51 Est @ 3.78% 341.71
2026 903.09 Est @ 2.8% 306.94
2027 922.15 Est @ 2.11% 273.87
2028 937.19 Est @ 1.63% 243.21
Present value of next 10 years cash flows €3,690.05
WBAG:PC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €937.19 × (1 + 0.51%) ÷ (14.44% – 0.51%)
€6,761.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €6,761.29 ÷ (1 + 14.44%)10
€1,754.62
WBAG:PC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €3,690.05 + €1,754.62
€5,444.67
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €5,444.67 / 1,000.00
€5.44
WBAG:PC Discount to Share Price
Calculation Result
Value per share (EUR) From above. €5.44
Current discount Discount to share price of €6.44
= -1 x (€6.44 - €5.44) / €5.44
-18.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Pirelli & C is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Pirelli & C's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pirelli & C's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:PC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.44
BIT:PIRC Share Price ** BIT (2019-04-18) in EUR €6.44
Europe Auto Components Industry PE Ratio Median Figure of 42 Publicly-Listed Auto Components Companies 13.18x
Austria Market PE Ratio Median Figure of 51 Publicly-Listed Companies 14.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pirelli & C.

WBAG:PC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:PIRC Share Price ÷ EPS (both in EUR)

= 6.44 ÷ 0.44

14.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pirelli & C is overvalued based on earnings compared to the Europe Auto Components industry average.
  • Pirelli & C is good value based on earnings compared to the Austria market.
Price based on expected Growth
Does Pirelli & C's expected growth come at a high price?
Raw Data
WBAG:PC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
13.1%per year
Europe Auto Components Industry PEG Ratio Median Figure of 33 Publicly-Listed Auto Components Companies 1.1x
Austria Market PEG Ratio Median Figure of 32 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

WBAG:PC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.7x ÷ 13.1%

1.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pirelli & C is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Pirelli & C's assets?
Raw Data
WBAG:PC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €4.47
BIT:PIRC Share Price * BIT (2019-04-18) in EUR €6.44
Europe Auto Components Industry PB Ratio Median Figure of 47 Publicly-Listed Auto Components Companies 1.48x
Austria Market PB Ratio Median Figure of 59 Publicly-Listed Companies 1.27x
WBAG:PC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:PIRC Share Price ÷ Book Value per Share (both in EUR)

= 6.44 ÷ 4.47

1.44x

* Primary Listing of Pirelli & C.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pirelli & C is good value based on assets compared to the Europe Auto Components industry average.
X
Value checks
We assess Pirelli & C's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Pirelli & C has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PC Future Performance

 How is Pirelli & C expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pirelli & C expected to grow at an attractive rate?
  • Pirelli & C's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Pirelli & C's earnings growth is expected to exceed the Austria market average.
  • Pirelli & C's revenue growth is expected to exceed the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:PC Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:PC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 13.1%
WBAG:PC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 2.9%
Europe Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Europe Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Austria Market Earnings Growth Rate Market Cap Weighted Average 9%
Austria Market Revenue Growth Rate Market Cap Weighted Average 2.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:PC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:PC Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 6,668 1
2022-12-31 6,358 1
2021-12-31 5,973 1,316 654 8
2020-12-31 5,734 1,073 593 17
2019-12-31 5,434 931 534 17
WBAG:PC Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 5,554 695 438
2018-09-30 5,626 745 435
2018-06-30 5,724 710 374
2018-03-31 5,801 989 309
2017-12-31 5,907 1,002 264
2017-09-30 5,784 816 320
2017-06-30 5,726 1,115 228
2017-03-31 5,640 922 231
2016-12-31 5,490 1,116 151
2016-09-30 5,202 466 31
2016-06-30 4,697 508 -8
2016-03-31 3,647 89 -13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Pirelli & C's earnings are expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).
  • Pirelli & C's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:PC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Pirelli & C Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:PC Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.68 0.75 0.64 6.00
2020-12-31 0.60 0.70 0.52 14.00
2019-12-31 0.53 0.61 0.48 12.00
WBAG:PC Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.44
2018-09-30 0.45
2018-06-30 0.37
2018-03-31 0.37
2017-12-31 0.31
2017-09-30 0.32
2017-06-30 0.60
2017-03-31 1.62
2016-12-31 0.21
2016-09-30 0.22
2016-06-30 -0.05
2016-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Pirelli & C is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Pirelli & C's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pirelli & C has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PC Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Pirelli & C's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Pirelli & C's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Pirelli & C's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Pirelli & C's earnings growth has exceeded the Europe Auto Components industry average in the past year (66% vs -0.9%).
Earnings and Revenue History
Pirelli & C's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Pirelli & C Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:PC Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,554.06 438.04 1,414.96
2018-09-30 5,626.01 434.58 1,456.38
2018-06-30 5,724.47 373.76 1,434.10
2018-03-31 5,800.74 309.03 1,439.11
2017-12-31 5,906.73 263.96 1,447.53
2017-09-30 5,784.05 320.29 1,415.32
2017-06-30 5,726.19 228.42 1,490.47
2017-03-31 5,639.51 231.09 1,408.78
2016-12-31 5,490.29 151.43 1,382.80
2016-09-30 5,201.71 30.99 898.39
2016-06-30 4,696.78 -7.50 940.36
2016-03-31 3,647.37 -12.75 654.62
2015-12-31 1,966.38 1.74 326.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Pirelli & C has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Pirelli & C used its assets less efficiently than the Europe Auto Components industry average last year based on Return on Assets.
  • Pirelli & C has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Pirelli & C's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Pirelli & C has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PC Health

 How is Pirelli & C's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Pirelli & C's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pirelli & C is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Pirelli & C's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Pirelli & C's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Pirelli & C Company Filings, last reported 3 months ago.

WBAG:PC Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,550.93 4,798.77 1,384.61
2018-09-30 4,464.80 4,805.46 569.65
2018-06-30 4,323.24 4,694.76 598.67
2018-03-31 4,267.62 4,581.78 601.22
2017-12-31 4,177.01 4,522.47 1,151.46
2017-09-30 4,159.57 4,840.47 405.30
2017-06-30 4,057.31 4,855.89 548.75
2017-03-31 3,002.88 6,145.74 482.86
2016-12-31 3,274.86 6,623.79 1,581.57
2016-09-30 3,188.16 6,819.57 717.95
2016-06-30 3,195.76 6,732.48 653.52
2016-03-31 3,281.64 6,588.68 1,242.13
2015-12-31 2,161.31 6,376.42 997.23
  • Pirelli & C's level of debt (105.4%) compared to net worth is high (greater than 40%).
  • Unable to establish if Pirelli & C's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (14.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.1x coverage).
X
Financial health checks
We assess Pirelli & C's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Pirelli & C has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.75%
Current annual income from Pirelli & C dividends. Estimated to be 3.64% next year.
If you bought €2,000 of Pirelli & C shares you are expected to receive €55 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Pirelli & C's pays a higher dividend yield than the bottom 25% of dividend payers in Austria (1.44%).
  • Pirelli & C's dividend is below the markets top 25% of dividend payers in Austria (4.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:PC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Europe Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 3.2%
Austria Market Average Dividend Yield Market Cap Weighted Average of 49 Stocks 3.4%
Austria Minimum Threshold Dividend Yield 10th Percentile 1.1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.4%
Austria Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:PC Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.27 8.00
2020-12-31 0.24 17.00
2019-12-31 0.21 17.00
WBAG:PC Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-26 0.177 2.924

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Pirelli & C has stable dividend payments.
  • Pirelli & C only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Pirelli & C's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Pirelli & C's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Pirelli & C afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pirelli & C has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PC Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marco Tronchetti Provera
COMPENSATION €1,092,916
AGE 70
TENURE AS CEO 27.3 years
CEO Bio

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 1992 and has been its Executive Vice Chairman since October 21, 2015. Mr. Tronchetti Provera served as the Chief Executive Officer of Prelios S.p.A. He served as the President of Pirelli Group. Mr. Tronchetti Provera began his career in 1973 and developed sea transport business for family company in the early seventies and also established a financial holding company. He served as President of CAMFIN S.p.A. Mr. Tronchetti Provera served as the Chief Executive Officer and Chairman of Pirelli SpA. In 1986, he joined the Pirelli group as a Managing Partner at Pirelli & C. Since 1988, he served as the Chief Executive Officer and General Manager of the Société Internationale Pirelli S.A., Basle until 1992. Mr. Tronchetti Provera served as the Chief Executive Officer of Telecom Italia S.P.A. since October 13, 2001. He served as an Executive Director of Telecom Italia Spa since October 13, 2001 until September 15, 2006. Mr. Tronchetti Provera has been the Chairman of Pirelli & C. Real Estate S.p.A., since May 30, 2001. He serves as the Chairman of Confindustria. Mr. Tronchetti Provera serves as the Chairman of the Silvio Tronchetti Provera Foundation and Pirelli Foundation. Previously, he served as the Chairman of Advisory Committee at EuroQube Fund. Mr. Tronchetti Provera served as the Chairman of CAM Finanziaria SpA, Nuove Partecipazioni S.p.A., MBA Polymers, Inc., Pirelli Labs S.p.A., Pirelli & C. Eco Technology S.p.A., Pirelli & C A p A, GPI, Gruppo Partecipazioni Industriali S.p.A., Marco Tronchetti Provera & C. S.A.p.A., Pirelli & C.Ambiente S.p.A. and Pirelli & C.A.p.A. He has served as Vice-Chairman of TP Industrial Holding S.p.A. He served as Chairman of Camfin S.p.A. until December 2013 and served as its President. Mr. Tronchetti Provera served as the Chairman of Pirelli & C.SPA. from May 7, 2003 to October 21, 2015. He served as Chairman of Prelios S.p.A. since May 30, 2001 until May 2013. Mr. Tronchetti Provera served as Chairman and Director of Telecom Italia Mobile S.p.A. until September 15, 2006. He served as the Chairman of "Il Sole 24 Ore" from December 1996 to September 2001. Mr. Tronchetti Provera served as Chairman of "Teatro alla Scala" from October 2001 to September 2005. He served as Chairman and Director of Banca Popolare Di Vicenza S.C.p.A. Mr. Tronchetti Provera served as the Chairman and Director of Olimpia S.p.A. He served as the Chairman of Telecom Italia S.P.A. since September 2001 and again served since May 6, 2004. Mr. Tronchetti Provera serves as Deputy Chairman of Mediobanca S.p.A. He has been Deputy Chairman at Mediobanca Banca di Credito Finanziario S.p.A. since May 23, 2007. Mr. Tronchetti Provera served as Vice Chairman of Telecom Italia S.P.A. from October 13, 2001 to September 15, 2006. He previously served as a Deputy Chairman and Director of Mediobanca S.p.A. until July 18, 2013. Mr. Tronchetti Provera serves as a Director of Pirelli Tyre S.p.A. He has been a Director of RCS MediaGroup S.p.A. since September 26, 2016. Mr. Tronchetti Provera serves as Director at Alitalia - Compagnia Aerea Italiana S.p.A., Fondazione Cerba and of Eurostazioni S.p.A., Bocconi University of Milan, F. C. Internazionale Milano S.p.A., RCS Quotidiani S.p.A. and Luigi Bocconi University. He serves as a Member of the European Round Table of Industrialists, Gruppo Italiano Trilateral Commission, International Council of J.P. Morgan, New York Stock Exchange European Advisory Committee and Giunta Direttiva Assonime. Mr. Tronchetti Provera served as a Director of “Teatro alla Scala” from October 2001 to September 2005. He served as a Member of supervisory board of Mediobanca Banca di Credito Finanziario S.p.A. Mr. Tronchetti Provera served as a Director of UniCredit S.p.A. He served as a Director of Prelios SpA. Mr. Tronchetti Provera served as a Member of International Advisory Board and Joint Advisory Council at Allianz SE until December 31, 2014. He served as a Director of Pirelli SpA. Mr. Tronchetti Provera previously served as a Member of Supervisory Board at Mediobanca S.p.A., until October 2008. He serves as an Honorary Co-Chairman for the Italian branch of the Council for the United States and Italy, of which he served as an Italian Co-Chairman for 15 years and Member of the Italian Group of the Trilateral Commission. Mr. Tronchetti Provera holds a Degree in Economics and Business Administration from Bocconi University of Milan, 1971.

CEO Compensation
  • Insufficient data for Marco to compare compensation growth.
  • Insufficient data for Marco to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Pirelli & C management team in years:

2
Average Tenure
56.5
Average Age
  • The tenure for the Pirelli & C management team is about average.
Management Team

Marco Tronchetti Provera

TITLE
Executive Deputy Chairman & CEO
COMPENSATION
€1M
AGE
70
TENURE
27.3 yrs

Francesco Tanzi

TITLE
Executive VP & CFO
AGE
54
TENURE
2 yrs

Andrea Livio Casaluci

TITLE
General Manager of Operations
TENURE
0.9 yrs

Valeria Leone

TITLE
Senior VP of Investor Relations
AGE
57
TENURE
2 yrs

Nicola Verdicchio

TITLE
Senior VP & Chief Legal Officer
AGE
56
TENURE
2 yrs

Maurizio Abet

TITLE
Senior VP of Communication
AGE
50
TENURE
2 yrs

Massimo Battaini

TITLE
Senior VP of Marketing & Supply Chain
AGE
57

Davide Sala

TITLE
Executive VP and Chief Human Resources & Organization Officer

Maurizio Boiocchi

TITLE
Strategic Advisor and Executive VP of Technology & Innovation
AGE
68
TENURE
2 yrs

Roberto Righi

TITLE
Executive Vice President of Commercial Replacement
AGE
53
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the Pirelli & C board of directors in years:

2.4
Average Tenure
56
Average Age
  • The average tenure for the Pirelli & C board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ning Gaoning

TITLE
Chairman of the Board
TENURE
0.7 yrs

Marco Tronchetti Provera

TITLE
Executive Deputy Chairman & CEO
COMPENSATION
€1M
AGE
70
TENURE
3.5 yrs

Andrea Livio Casaluci

TITLE
General Manager of Operations
TENURE
0.3 yrs

Francesco Fallacara

TITLE
Chairman of Board of Statutory Auditors
AGE
54
TENURE
3.9 yrs

Haisu Tao

TITLE
Independent Director
COMPENSATION
€25K
AGE
69
TENURE
1.7 yrs

Fan Xiaohua

TITLE
Independent Director
COMPENSATION
€26K
AGE
44
TENURE
1.7 yrs

Domenico De Sole

TITLE
Independent Director
COMPENSATION
€41K
AGE
74
TENURE
1.7 yrs

Xingqiang Yang

TITLE
Director
COMPENSATION
€30K
AGE
51
TENURE
3.5 yrs

Xin Ping Bai

TITLE
Director
COMPENSATION
€51K
AGE
50
TENURE
3.6 yrs

Giorgio Bruno

TITLE
Director
COMPENSATION
€1M
AGE
58
TENURE
3.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
12. Dec 18 Buy CAMFIN S.p.A. Company 10. Dec 18 10. Dec 18 50,000 €5.95 €297,280
25. Oct 18 Buy CAMFIN S.p.A. Company 23. Oct 18 23. Oct 18 200,000 €5.91 €1,181,220
24. Oct 18 Buy CAMFIN S.p.A. Company 22. Oct 18 22. Oct 18 200,000 €5.94 €1,187,260
23. Oct 18 Buy CAMFIN S.p.A. Company 19. Oct 18 19. Oct 18 200,000 €5.87 €1,173,260
X
Management checks
We assess Pirelli & C's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Pirelli & C has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PC News

Simply Wall St News

PC Company Info

Description

Pirelli & C. S.p.A. produces and supplies tires for cars, motorcycles, and bicycles in Europe, North American free trade area, the Asia-Pacific, LATAM, the Middle East, Africa, India, Russia, CIS, and South America. It provides premium, specialty, super specialty, and prestige tires. The company offers automotive products under the P Zero, Cinturato, Winter, and Scorpion names; motorcycle products under the Pirelli and Metzeler names; and road racing tires under the P Zero Velo name, as well as urban tires under the Cycl-e name. It also provides Pirelli Connesso and Cyber systems that allow tires to communicate digitally with the customers about tire temperature, pressure, and wear; Run Flat and Seal Inside specialties that enable cars to continue driving after a puncture; and Pirelli Noise Cancelling System for reducing road noise of tires. In addition, the company engages in the consumer marketing, digital, and data science businesses, as well as the provision of ancillary services. Further, it provides OEM services; supports car and motorcycle sport events; engages in the research and development of products, processes, and materials; and operates a network of approximately 14,600 points of sale. The company was founded in 1872 and is headquartered in Milan, Italy.

Details
Name: Pirelli & C. S.p.A.
PC
Exchange: WBAG
Founded: 1872
€6,440,000,000
1,000,000,000
Website: http://www.pirelli.com
Address: Pirelli & C. S.p.A.
Viale Piero e Alberto Pirelli n. 25,
Milan,
Milan, 20126,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT PIRC Ordinary Shares Borsa Italiana IT EUR 04. Oct 2017
OTCPK PLLI.F Ordinary Shares Pink Sheets LLC US USD 04. Oct 2017
DB 2PI Ordinary Shares Deutsche Boerse AG DE EUR 04. Oct 2017
LSE 0P1R Ordinary Shares London Stock Exchange GB EUR 04. Oct 2017
WBAG PC Ordinary Shares Wiener Boerse AG AT EUR 04. Oct 2017
BATS-CHIXE PIRCM Ordinary Shares BATS 'Chi-X Europe' GB EUR 04. Oct 2017
Number of employees
Current staff
Staff numbers
30,642
Pirelli & C employees.
Industry
Tires and Rubber
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 22:35
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/04/04
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.