DB:AEU

Stock Analysis Report

Executive Summary

Prysmian S.p.A. produces, distributes, and sells cables and systems, and related accessories for the energy and telecommunications industries worldwide.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

AEU

1.1%

DE Electrical

-0.9%

DE Market


1 Year Return

34.9%

AEU

31.5%

DE Electrical

12.8%

DE Market

Return vs Industry: AEU exceeded the German Electrical industry which returned 31.6% over the past year.

Return vs Market: AEU exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

AEUIndustryMarket
7 Day-1.6%1.1%-0.9%
30 Day10.4%1.0%0.6%
90 Day13.4%1.1%2.9%
1 Year38.2%34.9%31.9%31.5%16.3%12.8%
3 Year6.0%-3.4%-7.4%-10.4%15.8%5.7%
5 Year49.8%30.6%-4.4%-11.0%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

27.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AEU (€23.36) is trading above our estimate of fair value (€18.02)

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


Price To Earnings Ratio

PE vs Industry: AEU is good value based on its PE Ratio (27.3x) compared to the Electrical industry average (31.2x).

PE vs Market: AEU is poor value based on its PE Ratio (27.3x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: AEU is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: AEU is good value based on its PB Ratio (2.5x) compared to the DE Electrical industry average (2.6x).


Next Steps

Future Growth

How is Prysmian forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEU's forecast earnings growth (15.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: AEU's earnings (15.7% per year) are forecast to grow faster than the German market (13% per year).

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

Revenue vs Market: AEU's revenue (2.5% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: AEU's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEU's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has Prysmian performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEU has a large one-off loss of €127.0M impacting its September 30 2019 financial results.

Growing Profit Margin: AEU's current net profit margins (1.9%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: AEU's earnings have grown by 6.8% per year over the past 5 years.

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

Earnings vs Industry: AEU had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Electrical industry average (17.2%).


Return on Equity

High ROE: AEU's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Prysmian's financial position?


Financial Position Analysis

Short Term Liabilities: AEU's short term assets (€4.9B) exceed its short term liabilities (€4.2B).

Long Term Liabilities: AEU's short term assets (€4.9B) exceed its long term liabilities (€3.6B).


Debt to Equity History and Analysis

Debt Level: AEU's debt to equity ratio (125.1%) is considered high.

Reducing Debt: AEU's debt to equity ratio has reduced from 133.9% to 125.1% over the past 5 years.

Debt Coverage: AEU's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: AEU's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: AEU's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

1.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEU's dividend (1.86%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: AEU's dividend (1.86%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: AEU's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.7%), AEU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEU's dividends in 3 years are forecast to be well covered by earnings (25.2% payout ratio).


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Valerio Battista (62yo)

€1,643,914

Compensation

Mr. Valerio Battista serves as the Chief Executive Officer and General Manager of Prysmian S.p.A. (also known as Prysmian Cables and Systems). Mr. Battista has been an Executive Director of Prysmian S.p.A. ...


CEO Compensation Analysis

Compensation vs Market: Valerio's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD3.37M).

Compensation vs Earnings: Valerio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Valerio Battista
CEO, GM & Executive Director0yrs€1.64mno data
Pier Francesco Facchini
CFO & Executive Director13yrs€863.38kno data
Fabio Romeo
Chief Strategy & Development Officer and Executive Director13yrs€1.35mno data
Massimo Battaini
President & CEO of North America and Executive Director6yrs€622.81kno data
Andrea Pirondini
Chief Operating Officer6.1yrsno datano data
Stefano Brandinali
Chief Digital Officer & Chief Information Officer4.3yrsno datano data
Maria Bifulco
Investor Relations Director0yrsno datano data
Alessandro Nespoli
Chief Audit & Compliance Officer0yrsno datano data
Lorenzo Caruso
Chief Communication Officer0yrsno datano data
Fabrizio Rutschmann
Chief Human Resources Officer9.7yrsno datano data

7.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: AEU's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Valerio Battista
CEO, GM & Executive Director0yrs€1.64mno data
Pier Francesco Facchini
CFO & Executive Director13yrs€863.38kno data
Fabio Romeo
Chief Strategy & Development Officer and Executive Director13yrs€1.35mno data
Massimo Battaini
President & CEO of North America and Executive Director6yrs€622.81kno data
Francesco Gori
Independent Director1.4yrsno datano data
Claudio De Conto
Independent Chairman of the Board0yrs€51.40kno data
Pellegrino Libroia
Chairman of the Statutory Auditors6.8yrs€75.00kno data
Maria Elena Bruna Cappello
Independent Non-Executive Director7.8yrs€60.00kno data
Maria Mariani
Independent Non-Executive Director4.8yrs€46.70kno data
Monica de Virgiliis
Independent Non-Executive Director4.8yrs€33.30kno data

6.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: AEU's board of directors are considered experienced (6.8 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 been diluted in the past year, with total shares outstanding growing by 13.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Prysmian S.p.A.
  • Ticker: AEU
  • Exchange: DB
  • Founded:
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: €6.091b
  • Shares outstanding: 263.22m
  • Website: https://www.prysmiangroup.com/it

Number of Employees


Location

  • Prysmian S.p.A.
  • Via Chiese 6
  • Milan
  • Milan
  • 20126
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRYBIT (Borsa Italiana)YesOrdinary SharesITEURMay 2007
AEUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
0NUXLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2007
PRYM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
PRYMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2007
PRYWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMay 2007
PRY NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 2007
PRYM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Prysmian S.p.A. produces, distributes, and sells cables and systems, and related accessories for the energy and telecommunications industries worldwide. The company operates through Energy, Projects, and Telecom segments. The Energy segment manufactures medium voltage cable systems to connect industrial and residential buildings to primary distribution grids; low voltage products for power distribution and the wiring of buildings; cable systems for various industrial applications, such as trains, aircraft, ships, port cranes, tunnel and mining excavation systems, nuclear power stations, military vehicles, and renewable energy; and solutions for elevator and automotive industries. The Projects segment designs, manufactures, and installs high and extra high voltage cables for underground and submarine power transmission; and provides solutions from project management to cable installation for submarine cables between offshore wind farms and the mainland used for generation and distribution. The Telecom segment manufactures cable systems and connectivity products comprising optical fiber, optical cables, connectivity components and accessories, optical ground wires, and copper cables used in telecommunication networks. Prysmian S.p.A. is headquartered in Milan, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:49
End of Day Share Price2020/02/21 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.