BIT:BRE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

Risks

  • Brembo has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-1.6%

BIT:BRE

-3.6%

IT Auto Components

-0.1%

IT Market


1 Year Return

-26.6%

BIT:BRE

-34.6%

IT Auto Components

-3.6%

IT Market

BRE outperformed the Auto Components industry which returned -33.2% over the past year.

BRE underperformed the Market in Italy which returned -1.5% over the past year.


Share holder returns

BREIndustryMarket
7 Day-1.6%-3.6%-0.1%
30 Day-14.3%-12.7%-4.7%
90 Day-16.8%-16.4%-1.7%
1 Year-25.0%-26.6%-32.8%-34.6%0.5%-3.6%
3 Year-13.7%-18.3%-23.5%-29.7%20.4%4.0%
5 Year64.5%50.1%-5.1%-15.8%7.2%-36.1%

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 based on future cash flows and its price relative to the stock market?

11.8x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Brembo is good value based on earnings compared to the IT Auto Components industry average.

Brembo is good value based on earnings compared to the Italy market.


Price Based on Expected Growth

Brembo is poor value based on expected growth next year.


Price Based on Value of Assets

Brembo is overvalued based on assets compared to the IT Auto Components industry average.


Next Steps

Future Growth

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

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Brembo's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Brembo's earnings are expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

Brembo's revenue growth is positive but not above the Italy market average.

Brembo's earnings growth is positive but not above the Italy market average.

Brembo's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Brembo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Brembo performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Brembo's year on year earnings growth rate has been positive over the past 5 years.

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

Brembo's 1-year earnings growth is negative, it can't be compared to the Europe Auto Components industry average.


Return on Equity

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


Return on Assets

Brembo used its assets more efficiently than the IT Auto Components industry average last year based on Return on Assets.


Return on Capital Employed

Brembo's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Brembo's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Brembo's level of debt (41.2%) 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 (110.8% vs 41.2% today).

Debt is well covered by operating cash flow (64.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 19.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

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

2.83%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Brembo's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.11%).

Brembo's dividend is below the markets top 25% of dividend payers in Italy (4.57%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

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

10.4yrs

Average management tenure


CEO

Daniele Schillaci 0

0.1yrs

Tenure

0

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, ...


Management Age and Tenure

10.4yrs

Average Tenure

The average tenure for the Brembo management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.7yrs

Average Tenure

The tenure for the Brembo board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Cristina Bombassei

    Chief CSR Officer & Executive Director

    • Tenure: 22.6yrs
    • Compensation: €195.55k
  • Alberto Bombassei (79yo)

    Chairman & President

    • Tenure: 26.6yrs
    • Compensation: €5.20m
  • Matteo Tiraboschi

    Executive Deputy Chairman

    • Tenure: 8.2yrs
    • Compensation: €3.41m
  • Umberto Simonelli (37yo)

    Chief Legal & Corporate Affairs Officer and Company Secretary

    • Tenure: 10.5yrs
  • Daniele Schillaci

    CEO, MD & Director

    • Tenure: 0.1yrs
  • Giovanni Canavotto

    GM of Systems Division & Executive Director

    • Tenure: 0.0yrs

Board Members

  • Cristina Bombassei

    Chief CSR Officer & Executive Director

    • Tenure: 22.6yrs
    • Compensation: €195.55k
  • Alberto Bombassei (79yo)

    Chairman & President

    • Tenure: 26.6yrs
    • Compensation: €5.20m
  • Umberto Nicodano

    Non-Executive Director

    • Tenure: 19.6yrs
    • Compensation: €55.00k
  • Valerio Battista (62yo)

    Lead Independent Director

    • Tenure: 2.3yrs
  • Matteo Tiraboschi

    Executive Deputy Chairman

    • Tenure: 8.2yrs
    • Compensation: €3.41m
  • Daniele Schillaci

    CEO, MD & Director

    • Tenure: 0.1yrs
  • Raffaele Pagani

    Chairwoman of Board of Statutory Auditors

    • Tenure: 5.3yrs
    • Compensation: €61.73k
  • Barbara Borra

    Independent & Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: €65.00k
  • Laura Cioli

    Independent & Non-Executive Director

    • Tenure: 0.0yrs
  • Giovanni Canavotto

    GM of Systems Division & Executive Director

    • Tenure: 0.0yrs

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: €2.696b
  • Shares outstanding: 325.19m
  • Website: https://www.brembo.com

Number of Employees


Location

  • Brembo S.p.A.
  • Kilometro Rosso Science and Technology 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
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, Breco, AP Racing, Bybre, and Marchesini brands for cars, motorbikes, and indu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 20:44
End of Day Share Price2019/08/20 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.