Saipem SpA

WBAG:SPM3 Stock Report

Market Cap: €4.6b

Saipem Valuation

Is SPM3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SPM3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SPM3 (€2.34) is trading below our estimate of fair value (€4.87)

Significantly Below Fair Value: SPM3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SPM3?

Key metric: As SPM3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SPM3. This is calculated by dividing SPM3's market cap by their current earnings.
What is SPM3's PE Ratio?
PE Ratio15.1x
Earnings€307.00m
Market Cap€4.63b

Price to Earnings Ratio vs Peers

How does SPM3's PE Ratio compare to its peers?

The above table shows the PE ratio for SPM3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.3x
SBO Schoeller-Bleckmann Oilfield Equipment
9.2x18.6%€494.1m
OMV OMV
9.6x16.8%€12.7b
002353 Yantai Jereh Oilfield Services Group
15x18.0%CN¥36.8b
002423 COFCO Capital Holdings
27.6x3.8%CN¥35.8b
SPM3 Saipem
15.1x25.1%€4.6b

Price-To-Earnings vs Peers: SPM3 is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (15x).

Price to Earnings Ratio vs Industry

How does SPM3's PE Ratio compare vs other companies in the European Energy Services Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SPM3 15.1xIndustry Avg. 9.4xNo. of Companies8PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SPM3 is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the European Energy Services industry average (9.4x).

Price to Earnings Ratio vs Fair Ratio

What is SPM3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPM3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.1x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: SPM3 is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (12x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SPM3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.34
€3.06
+30.6%
12.1%€3.50€2.20n/a16
Nov ’25€2.22
€2.97
+33.6%
11.0%€3.40€2.20n/a17
Oct ’25€1.97
€2.89
+46.4%
11.6%€3.40€2.10n/a17
Sep ’25€2.03
€2.87
+41.4%
12.0%€3.40€2.10n/a18
Aug ’25€2.20
€2.88
+30.8%
11.7%€3.40€2.10n/a19
Jul ’25€2.42
€2.81
+16.3%
12.7%€3.20€2.00n/a18
Jun ’25€2.32
€2.74
+18.0%
14.3%€3.20€2.00n/a18
May ’25€2.21
€2.74
+23.9%
14.3%€3.20€2.00n/a18
Apr ’25€2.04
€2.60
+27.6%
16.4%€3.14€1.65n/a17
Mar ’25€1.73
€2.32
+34.3%
15.0%€3.00€1.65n/a17
Feb ’25n/a
€2.23
0%
17.6%€3.00€1.40n/a16
Jan ’25€1.49
€2.24
+50.3%
17.3%€3.00€1.40n/a16
Dec ’24€1.47
€2.24
+52.3%
17.3%€3.00€1.40n/a16
Nov ’24€1.43
€2.23
+55.7%
17.2%€3.00€1.40€2.2216
Oct ’24€1.47
€2.14
+46.0%
18.1%€2.90€1.40€1.9713
Sep ’24€1.49
€2.14
+43.4%
19.0%€2.90€1.40€2.0312
Aug ’24€1.47
€1.99
+35.7%
19.5%€2.57€1.23€2.2014
Jul ’24€1.18
€1.93
+63.9%
18.7%€2.50€1.23€2.4213
Jun ’24€1.20
€1.93
+60.5%
18.7%€2.50€1.23€2.3213
May ’24€1.38
€1.94
+40.4%
18.0%€2.50€1.23€2.2114
Apr ’24n/a
€1.81
0%
16.9%€2.20€1.23€2.0414
Mar ’24€1.54
€2.03
+31.5%
45.8%€5.20€1.23€1.7314
Feb ’24€1.39
€1.89
+35.8%
51.0%€5.20€1.23n/a14
Jan ’24€1.13
€1.65
+46.1%
63.7%€5.20€0.70€1.4914
Dec ’23€1.02
€1.65
+62.1%
63.7%€5.20€0.70€1.4714
Nov ’23€0.98
€5.13
+422.0%
219.4%€40.48€0.70€1.4311

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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