Brembo (BIT:BRE) - Share price, News & Analysis

BRE fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	3/6
Financial Health	6/6
Dividends	4/6

BRE Stock Overview

Brembo S.p.A., together with its subsidiaries, designs, develops, produces, and sells braking systems and components for cars, motorbikes, and commercial and industrial vehicles and machinery.

Rewards

PE ratio (15.3x) is below the Italian market (17.3x)

Earnings are forecast to grow 8.13% per year

Risk Analysis

Unstable dividend track record

Brembo Competitors

Volkswagen

XTRA:VOW3

€84.6b

Mercedes-Benz Group

XTRA:MBG

€67.7b

Ferrari

NYSE:RACE

US$34.6b

Snam

BIT:SRG

€17.8b

Price History & Performance

Summary of all time highs, changes and price drops for Brembo
Historical stock prices
Current Share Price	€10.66
52 Week High	€13.52
52 Week Low	€8.10
Beta	1.4
1 Month Change	6.97%
3 Month Change	-7.95%
1 Year Change	4.20%
3 Year Change	9.56%
5 Year Change	-24.88%
Change since IPO	1,715.74%

Recent News & Updates

May 13

Is Brembo S.p.A. (BIT:BRE) Potentially Undervalued?

While Brembo S.p.A. ( BIT:BRE ) might not be the most widely known stock at the moment, it saw a double-digit share...

Apr 12

Is Brembo (BIT:BRE) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Mar 28

A Look At The Fair Value Of Brembo S.p.A. (BIT:BRE)

How far off is Brembo S.p.A. ( BIT:BRE ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

	BRE	IT Auto Components	IT Market
7D	-0.9%	-2.7%	0.7%
1Y	4.2%	-2.3%	-5.5%

Return vs Industry: BRE exceeded the Italian Auto Components industry which returned -2.3% over the past year.

Return vs Market: BRE exceeded the Italian Market which returned -5.5% over the past year.

Price Volatility

Is BRE's price volatile compared to industry and market?
BRE volatility
BRE Average Weekly Movement	6.5%
Auto Components Industry Average Movement	6.7%
Market Average Movement	6.2%
10% most volatile stocks in IT Market	8.6%
10% least volatile stocks in IT Market	4.0%

Stable Share Price: BRE is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BRE's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1961	12,656	Daniele Schillaci	https://www.brembo.com

Brembo S.p.A., together with its subsidiaries, designs, develops, produces, and sells braking systems and components for cars, motorbikes, and commercial and industrial vehicles and machinery. It operates through Discs/Systems/Motorbikes and After Market/Performance Group segments. The company offers brake discs, calipers, wheel-side modules, and braking systems, as well as integrated engineering services for light commercial and heavy industrial vehicles, motorbikes, and racing competitions.

Brembo Fundamentals Summary

How do Brembo's earnings and revenue compare to its market cap?
BRE fundamental statistics
Market Cap	€3.45b
Earnings (TTM)	€226.07m
Revenue (TTM)	€2.99b

15.3x

P/E Ratio

1.2x

P/S Ratio

Is BRE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BRE income statement (TTM)
Revenue	€2.99b
Cost of Revenue	€1.58b
Gross Profit	€1.41b
Other Expenses	€1.19b
Earnings	€226.07m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	0.70
Gross Margin	47.28%
Net Profit Margin	7.56%
Debt/Equity Ratio	36.0%

How did BRE perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

39%

Payout Ratio

Does BRE pay a reliable dividends?

See BRE dividend history and benchmarks

When do you need to buy BRE by to receive an upcoming dividend?
Brembo dividend dates
Ex Dividend Date	May 23 2022
Dividend Pay Date	May 25 2022
Days until Ex dividend	0 days
Days until Dividend pay date	2 days

Does BRE pay a reliable dividends?

See BRE dividend history and benchmarks

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

15.27x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: BRE (€10.66) is trading above our estimate of fair value (€8.25)

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

Price To Earnings Ratio

PE vs Industry: BRE is poor value based on its PE Ratio (15.3x) compared to the Italian Auto Components industry average (12.2x).

PE vs Market: BRE is good value based on its PE Ratio (15.3x) compared to the Italian market (17.3x).

Price to Earnings Growth Ratio

PEG Ratio: BRE is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: BRE is overvalued based on its PB Ratio (1.9x) compared to the IT Auto Components industry average (0.9x).

Future Growth

How is Brembo forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRE's forecast earnings growth (8.1% per year) is above the savings rate (1.7%).

Earnings vs Market: BRE's earnings (8.1% per year) are forecast to grow slower than the Italian market (9.7% per year).

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

Revenue vs Market: BRE's revenue (4.7% per year) is forecast to grow faster than the Italian market (-0.03% per year).

High Growth Revenue: BRE's revenue (4.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BRE's Return on Equity is forecast to be low in 3 years time (13.3%).

Past Performance

How has Brembo performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BRE has high quality earnings.

Growing Profit Margin: BRE's current net profit margins (7.6%) are higher than last year (7.2%).

Past Earnings Growth Analysis

Earnings Trend: BRE's earnings have declined by 6.9% per year over the past 5 years.

Accelerating Growth: BRE's earnings growth over the past year (34.1%) exceeds its 5-year average (-6.9% per year).

Earnings vs Industry: BRE earnings growth over the past year (34.1%) underperformed the Auto Components industry 38%.

Return on Equity

High ROE: BRE's Return on Equity (12.2%) is considered low.

Financial Health

How is Brembo's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BRE's short term assets (€1.7B) exceed its short term liabilities (€1.1B).

Long Term Liabilities: BRE's short term assets (€1.7B) exceed its long term liabilities (€830.7M).

Debt to Equity History and Analysis

Debt Level: BRE's net debt to equity ratio (12.4%) is considered satisfactory.

Reducing Debt: BRE's debt to equity ratio has reduced from 56.8% to 36% over the past 5 years.

Debt Coverage: BRE's debt is well covered by operating cash flow (58.5%).

Interest Coverage: BRE's interest payments on its debt are well covered by EBIT (29.6x coverage).

Balance Sheet

Dividend

What is Brembo current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BRE's dividend (2.53%) is higher than the bottom 25% of dividend payers in the Italian market (1.62%).

High Dividend: BRE's dividend (2.53%) is low compared to the top 25% of dividend payers in the Italian market (4.8%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.8%), BRE's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (64.3%), BRE's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

13.0yrs

Average management tenure

CEO

Daniele Schillaci

2.83yrs

Tenure

Mr. Daniele Schillaci has been Chief Executive Officer, Managing Director ?& Director at Brembo S.p.A. since July 1, 2019. Mr. Schillaci served as an Executive Vice President of Global Marketing and Sales,...

Leadership Team

Experienced Management: BRE's management team is seasoned and experienced (13 years average tenure).

Board Members

Experienced Board: BRE's board of directors are considered experienced (5.1 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31