BIT:BRE

Stock Analysis Report

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Executive Summary

Brembo S.p.A., together with its subsidiaries, designs, develops, and produces braking systems and components under the Brembo Racing, AP Racing, and Marchesini brands for cars, motorbikes, and industrial vehicles and machinery. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BRE is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BRE's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

7.2%

BRE

5.4%

IT Auto Components

2.8%

IT Market


1 Year Return

1.1%

BRE

-9.4%

IT Auto Components

-9.9%

IT Market

Return vs Industry: BRE exceeded the Italian Auto Components industry which returned -13.2% over the past year.

Return vs Market: BRE exceeded the Italian Market which returned -10.9% over the past year.


Shareholder returns

BREIndustryMarket
7 Day7.2%5.4%2.8%
30 Day15.0%15.3%13.3%
90 Day39.3%24.9%7.9%
1 Year1.1%1.1%-7.4%-9.4%-7.4%-9.9%
3 Year-10.7%-14.3%-33.0%-37.9%1.2%-8.6%
5 Year36.0%26.8%-16.4%-26.7%4.7%-28.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRE (€11.21) is trading above our estimate of fair value (€6.59)

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 (28.7x) compared to the XE Auto Components industry average (25.2x).

PE vs Market: BRE is poor value based on its PE Ratio (28.7x) compared to the Italian market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BRE is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BRE is overvalued based on its PB Ratio (2.7x) compared to the XE Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Brembo forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRE's forecast earnings growth (30.6% per year) is above the savings rate (2%).

Earnings vs Market: BRE's earnings (30.6% per year) are forecast to grow faster than the Italian market (24.6% per year).

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

Revenue vs Market: BRE's revenue (8% per year) is forecast to grow faster than the Italian market (3.4% per year).

High Growth Revenue: BRE's revenue (8% 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 (11.7%).


Next Steps

Past Performance

How has Brembo performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRE has high quality earnings.

Growing Profit Margin: BRE's current net profit margins (5.7%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: BRE's earnings have declined by 2.3% per year over the past 5 years.

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

Earnings vs Industry: BRE had negative earnings growth (-43.4%) over the past year, making it difficult to compare to the Auto Components industry average (-43.4%).


Return on Equity

High ROE: BRE's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Brembo's financial position?


Financial Position Analysis

Short Term Liabilities: BRE's short term assets (€1.4B) exceed its short term liabilities (€915.1M).

Long Term Liabilities: BRE's short term assets (€1.4B) exceed its long term liabilities (€814.9M).


Debt to Equity History and Analysis

Debt Level: BRE's debt to equity ratio (62.6%) is considered high.

Reducing Debt: BRE's debt to equity ratio has reduced from 67.5% to 62.6% over the past 5 years.

Debt Coverage: BRE's debt is well covered by operating cash flow (34.5%).

Interest Coverage: BRE's interest payments on its debt are well covered by EBIT (12.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.57%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: BRE is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

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


Next Steps

Management

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

11.6yrs

Average management tenure


CEO

Daniele Schillaci

1.33yrs

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

NamePositionTenureCompensationOwnership
Alberto Bombassei
Chairman & President27.83yrs€5.20mno data
Matteo Tiraboschi
Executive Deputy Chairman9.42yrs€3.41mno data
Cristina Bombassei
Chief CSR Officer & Executive Director23.83yrs€195.55kno data
Daniele Schillaci
CEO, MD & Director1.33yrsno datano data
Umberto Silva
Chief Legal & Corporate Affairs Officer and Company Secretary11.75yrsno datano data
Alessandra Ramorino
Chief Internal Audit Officerno datano datano data

11.6yrs

Average Tenure

Experienced Management: BRE's management team is seasoned and experienced (11.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alberto Bombassei
Chairman & President27.83yrs€5.20mno data
Matteo Tiraboschi
Executive Deputy Chairman9.42yrs€3.41mno data
Cristina Bombassei
Chief CSR Officer & Executive Director23.83yrs€195.55kno data
Daniele Schillaci
CEO, MD & Director1.33yrsno datano data
Gianfelice Mario Rocca
Independent & Non-Executive Director9.83yrs€45.00kno data
Umberto Nicodano
Non-Executive Director20.83yrs€55.00kno data
Valerio Battista
Lead Independent Director3.58yrsno datano data
Laura Cioli
Independent & Non-Executive Directorno datano datano data
Raffaella Pagani
President of Board of Statutory Auditors6.5yrs€61.73kno data
Nicoletta Giadrossi
Independent & Non-Executive Director3.58yrsno datano data
Elisabetta Magistretti
Independent Director0.58yrno datano data
Elizabeth Robinson
Independent Director0.58yrno datano data

6.5yrs

Average Tenure

67.5yo

Average Age

Experienced Board: BRE's board of directors are considered experienced (6.5 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

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


Key Information

  • Name: Brembo S.p.A.
  • Ticker: BRE
  • Exchange: BIT
  • Founded: 1961
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €3.631b
  • Shares outstanding: 323.89m
  • Website: https://www.brembo.com

Number of Employees


Location

  • Brembo S.p.A.
  • Kilometro Rosso Science & Tech Park
  • Viale Europa, 2
  • Stezzano
  • Bergamo
  • 24040
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BREBIT (Borsa Italiana)YesOrdinary SharesITEURJul 1995
0RPVLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1995
BRBO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1995
BREMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1995
BRCADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1995
BREWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 1995

Biography

Brembo S.p.A., together with its subsidiaries, designs, develops, and produces braking systems and components under the Brembo Racing, AP Racing, and Marchesini brands for cars, motorbikes, and industrial ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 21:05
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.