DB:PA6

Stock Analysis Report

Executive Summary

Prima Industrie SpA develops, manufactures, and markets laser systems for industrial applications, sheet metal processing machines, and industrial electronics and laser sources.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • Prima Industrie has significant price volatility in the past 3 months.
  • Prima Industrie is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

DB:PA6

2.6%

DE Machinery

2.6%

DE Market


1 Year Return

-64.2%

DB:PA6

-34.4%

DE Machinery

-9.6%

DE Market

PA6 underperformed the Machinery industry which returned -35.4% over the past year.

PA6 underperformed the Market in Germany which returned -10.8% over the past year.


Share holder returns

PA6IndustryMarket
7 Day-1.7%2.6%2.6%
30 Day-23.3%-5.7%-3.0%
90 Day-31.0%-13.8%-1.4%
1 Year-63.2%-64.2%-32.2%-34.4%-6.8%-9.6%
3 Year-5.8%-10.2%-22.5%-28.0%11.0%1.5%
5 Year5.5%-2.8%3.7%-8.0%25.6%8.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Prima Industrie undervalued based on future cash flows and its price relative to the stock market?

8.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Prima Industrie's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Prima Industrie's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Prima Industrie is good value based on earnings compared to the DE Machinery industry average.

Prima Industrie is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Prima Industrie earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Prima Industrie is good value based on assets compared to the DE Machinery industry average.


Next Steps

Future Growth

How is Prima Industrie expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Prima Industrie's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Prima Industrie's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Prima Industrie's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.

Prima Industrie's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.

Prima Industrie's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Prima Industrie will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Prima Industrie performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Prima Industrie has delivered over 20% year on year earnings growth in the past 5 years.

Prima Industrie's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Prima Industrie's 1-year earnings growth is negative, it can't be compared to the DE Machinery industry average.


Return on Equity

Prima Industrie has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Prima Industrie used its assets less efficiently than the DE Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Prima Industrie has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Prima Industrie's financial position?


Financial Position Analysis

Prima Industrie is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Prima Industrie's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Prima Industrie's level of debt (95.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (109.7% vs 95.8% today).

Operating cash flow is negative therefore debt is not well covered.

Prima Industrie earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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

1.76%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Prima Industrie's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.55%).

Prima Industrie's dividend is below the markets top 25% of dividend payers in Germany (4.22%).

Whilst dividend payments have been stable, Prima Industrie has been paying a dividend for less than 10 years.

Dividend payments have increased, but Prima Industrie only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Prima Industrie's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average board tenure


CEO

Domenico Peiretti 0

0.0yrs

Tenure

€22,000

Compensation

Mr. Domenico Peiretti serves as Chief Executive Officer of Prima Electro S.p.A. Mr. Peiretti has been Chief Executive Officer of Prima Electronics since May 2, 2011 and also serves as its Managing Director ...


CEO Compensation Analysis

Domenico's remuneration is lower than average for companies of similar size in Germany.

Domenico's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

5.3yrs

Average Tenure

74yo

Average Age

The tenure for the Prima Industrie board of directors is about average.


Insider Trading

More shares have been bought than sold by Prima Industrie individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

Buy€49,08027 May 19
Gianfranco Carbonato
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,000
Max Price€16.36
Buy€33,69223 May 19
Gianfranco Carbonato
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,000
Max Price€16.94
Buy€83,40521 May 19
Gianfranco Carbonato
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares5,000
Max Price€16.76
Buy€38,99111 Dec 18
Gianfranco Carbonato
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,000
Max Price€19.60
Buy€195,93419 Nov 18
Gianfranco Carbonato
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max Price€19.98

Ownership Breakdown


Management Team

  • Gianfranco Carbonato (74yo)

    Executive Chairman

    • Tenure: 8.3yrs
    • Compensation: €407.06k
  • Domenico Peiretti

    MD & Director

    • Tenure: 0.0yrs
    • Compensation: €22.00k
  • Ezio Basso

    MD, GM & Executive Director

    • Tenure: 0.0yrs
    • Compensation: €335.26k

Board Members

  • Paolo Cantarella (75yo)

    Independent Director

    • Tenure: 2.3yrs
  • Gianfranco Carbonato (74yo)

    Executive Chairman

    • Tenure: 8.3yrs
    • Compensation: €407.06k
  • Domenico Peiretti

    MD & Director

    • Tenure: 0.0yrs
    • Compensation: €22.00k
  • Ezio Basso

    MD, GM & Executive Director

    • Tenure: 0.0yrs
    • Compensation: €335.26k
  • Mario Mauri

    Independent Director

    • Tenure: 0.0yrs
    • Compensation: €23.00k
  • Rafic Mansour

    Non-Independent Director

    • Tenure: 0.0yrs
    • Compensation: €23.00k
  • Michael Mansour

    Non-Independent Director

    • Tenure: 0.0yrs
    • Compensation: €22.00k
  • Donatella Busso (46yo)

    Independent Director

    • Tenure: 0.0yrs
    • Compensation: €27.00k
  • Franco Nada

    Chairman of the Board of Statutory Auditors

    • Tenure: 0.0yrs
  • Paola Gatto

    Independent Director

    • Tenure: 2.3yrs

Company Information

Prima Industrie SpA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prima Industrie SpA
  • Ticker: PA6
  • Exchange: DB
  • Founded: 1977
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €122.938m
  • Shares outstanding: 10.38m
  • Website: https://www.primaindustrie.com

Number of Employees


Location

  • Prima Industrie SpA
  • Via Antonelli, 32
  • Collegno
  • Turin
  • 10093
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRIBIT (Borsa Italiana)YesOrdinary SharesITEUROct 1999
PA6DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1999
0NFPLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1999
PRIMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1999

Biography

Prima Industrie SpA develops, manufactures, and markets laser systems for industrial applications, sheet metal processing machines, and industrial electronics and laser sources. The company operates in two ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 20:54
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
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.