DB:ARQ

Stock Analysis Report

Executive Summary

Landi Renzo S.p.A. designs, produces, installs, and sells LPG and CNG fuel supply systems in Italy, Europe, America, Asia, and Rest of the World.


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ARQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

ARQ

18.5%

DE Auto Components

9.1%

DE Market


1 Year Return

-63.4%

ARQ

-44.5%

DE Auto Components

-13.1%

DE Market

Return vs Industry: ARQ underperformed the German Auto Components industry which returned -45.1% over the past year.

Return vs Market: ARQ underperformed the German Market which returned -14.2% over the past year.


Shareholder returns

ARQIndustryMarket
7 Day1.9%18.5%9.1%
30 Day-5.7%-5.7%-1.0%
90 Day-50.8%-36.1%-20.7%
1 Year-63.4%-63.4%-42.2%-44.5%-10.6%-13.1%
3 Year-4.0%-4.0%-55.8%-59.5%-10.7%-18.1%
5 Year-61.5%-61.5%-59.4%-63.7%-10.7%-22.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARQ (€0.42) is trading below our estimate of fair value (€0.52)

Significantly Below Fair Value: ARQ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ARQ is good value based on its PE Ratio (8.5x) compared to the Auto Components industry average (11.9x).

PE vs Market: ARQ is good value based on its PE Ratio (8.5x) compared to the German market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: ARQ is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: ARQ is overvalued based on its PB Ratio (0.8x) compared to the DE Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Landi Renzo forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARQ's forecast earnings growth (27.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: ARQ's earnings (27.9% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARQ's revenue (2.6% per year) is forecast to grow slower than the German market (3.9% per year).

High Growth Revenue: ARQ's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARQ's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Landi Renzo performed over the past 5 years?

42.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARQ has high quality earnings.

Growing Profit Margin: ARQ's current net profit margins (3.2%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: ARQ has become profitable over the past 5 years, growing earnings by 42.7% per year.

Accelerating Growth: ARQ's earnings growth over the past year (29.5%) is below its 5-year average (42.7% per year).

Earnings vs Industry: ARQ earnings growth over the past year (29.5%) exceeded the Auto Components industry -48.3%.


Return on Equity

High ROE: ARQ's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Landi Renzo's financial position?


Financial Position Analysis

Short Term Liabilities: ARQ's short term assets (€113.1M) exceed its short term liabilities (€90.4M).

Long Term Liabilities: ARQ's short term assets (€113.1M) exceed its long term liabilities (€61.2M).


Debt to Equity History and Analysis

Debt Level: ARQ's debt to equity ratio (121.6%) is considered high.

Reducing Debt: ARQ's debt to equity ratio has increased from 73.2% to 121.6% over the past 5 years.

Debt Coverage: ARQ's debt is not well covered by operating cash flow (10.4%).

Interest Coverage: ARQ's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ARQ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARQ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ARQ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARQ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average board tenure


CEO

Cristiano Musi (45yo)

3s

Tenure

Mr. Cristiano Musi has been Chief Executive Officer of Landi Renzo S.p.A. since Aptil 28, 2017. Mr. Musi served as General Manager of Landi Renzo S.p.A. since December 12, 2016 until July 27, 2017. Mr. Mus ...


Board Members

NamePositionTenureCompensationOwnership
Stefano Landi
Executive Chairman7yrs€310.75kno data
Cristiano Musi
CEO & Director3yrsno datano data
Giovannina Domenichini
Honorary Chairperson10yrs€18.50kno data
Silvia Landi
Director3.75yrsno datano data
Angelo Iori
Director3.75yrsno datano data
Anton Karl
Independent Director3.75yrsno datano data
Sara Fornasiero
Lead Independent Director4yrsno datano data
Vincenzo Russi
Independent Director1yrno datano data
Paolo Emanuele Maria Ferrero
Director1yrno datano data
Fabio Zucchetti
Chairman of the Board of Statutory Auditors1yrno datano data

3.8yrs

Average Tenure

59yo

Average Age

Experienced Board: ARQ's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

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


Key Information

  • Name: Landi Renzo S.p.A.
  • Ticker: ARQ
  • Exchange: DB
  • Founded: 1954
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €50.850m
  • Shares outstanding: 112.50m
  • Website: https://www.landirenzogroup.com

Number of Employees


Location

  • Landi Renzo S.p.A.
  • Via Nobel 2/4/6
  • Corte Tegge
  • Cavriago
  • Reggio Emilia
  • 42025
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LRBIT (Borsa Italiana)YesCommon StockITEURJun 2007
ARQDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2007
0ND3LSE (London Stock Exchange)YesCommon StockGBEURJun 2007
LRMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 2007

Biography

Landi Renzo S.p.A. designs, produces, installs, and sells LPG and CNG fuel supply systems in Italy, Europe, America, Asia, and Rest of the World. The company offers LPG and CNG alternative fuel systems for vehicles, including electro-mechanical components, such as pressure regulators, injectors, electrovalves, and multivalves; electronic devices comprising electronic control units, switches-indicators, timing advanced processors, and other accessories; and vehicle safety and mobility devices. It also provides professional loudspeakers for use in sound reinforcement systems, live events, and permanent installations; and original equipment manufacturer solutions, including components and systems. In addition, the company designs and builds components and infrastructures for various applications that include CNG refuelling stations and systems for automotive purposes; compressors and auxiliary systems for processing gas from the extraction phase to final distribution; and installations for transforming biogas into biomethane. It provides its products and services under the SAFE and MED names to car manufacturers, independent retailers, and importers. The company was founded in 1954 and is headquartered in Cavriago, Italy. Landi Renzo S.p.A. is a subsidiary of Girefin S.p.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 02:17
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.