BIT:LR

Stock Analysis Report

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Executive Summary

Landi Renzo S.p.A. designs, produces, installs, and sells LPG and CNG fuel supply systems in Italy, Europe, America, Asia, and Rest of the World.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

LR

2.1%

IT Auto Components

1.9%

IT Market


1 Year Return

-32.0%

LR

-21.7%

IT Auto Components

-6.6%

IT Market

Return vs Industry: LR underperformed the Italian Auto Components industry which returned -23.1% over the past year.

Return vs Market: LR underperformed the Italian Market which returned -9% over the past year.


Shareholder returns

LRIndustryMarket
7 Day2.2%2.1%1.9%
30 Day0.9%-1.7%-1.9%
90 Day40.2%0.3%10.7%
1 Year-32.0%-32.0%-19.7%-21.7%-4.2%-6.6%
3 Year-28.3%-28.3%-39.6%-44.5%-4.9%-13.6%
5 Year-29.6%-29.6%-31.8%-39.6%-7.4%-36.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LR (€0.64) is trading above our estimate of fair value (€0.52)

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


Price To Earnings Ratio

PE vs Industry: LR is poor value based on its PE Ratio (17.6x) compared to the XE Auto Components industry average (10.4x).

PE vs Market: LR is poor value based on its PE Ratio (17.6x) compared to the Italian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: LR is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: LR is overvalued based on its PB Ratio (1.1x) compared to the XE Auto Components industry average (0.8x).


Next Steps

Future Growth

How is Landi Renzo forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

53.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LR's forecast earnings growth (53.9% per year) is above the savings rate (2%).

Earnings vs Market: LR's earnings (53.9% per year) are forecast to grow faster than the Italian market (25.2% per year).

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

Revenue vs Market: LR's revenue (4.2% per year) is forecast to grow slower than the Italian market (5.2% per year).

High Growth Revenue: LR's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LR's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Landi Renzo performed over the past 5 years?

49.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LR has a large one-off loss of €1.8M impacting its March 31 2020 financial results.

Growing Profit Margin: LR's current net profit margins (2.2%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: LR has become profitable over the past 5 years, growing earnings by 49.3% per year.

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

Earnings vs Industry: LR had negative earnings growth (-36.2%) over the past year, making it difficult to compare to the Auto Components industry average (-36.2%).


Return on Equity

High ROE: LR's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Landi Renzo's financial position?


Financial Position Analysis

Short Term Liabilities: LR's short term assets (€119.3M) exceed its short term liabilities (€97.5M).

Long Term Liabilities: LR's short term assets (€119.3M) exceed its long term liabilities (€62.8M).


Debt to Equity History and Analysis

Debt Level: LR's debt to equity ratio (140.2%) is considered high.

Reducing Debt: LR's debt to equity ratio has increased from 77.2% to 140.2% over the past 5 years.

Debt Coverage: LR's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: LR's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Landi Renzo current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LR'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 LR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LR'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?

4.1yrs

Average board tenure


CEO

Cristiano Musi (46 yo)

3.33yrs

Tenure

Mr. Cristiano Musi has been Chief Executive Officer of Landi Renzo S.p.A. since Aptil 28, 2017. Mr. Musi served as General Manager of Landi Renzo S.p.A. since December 12, 2016 until July 27, 2017. Mr. Mus ...


Board Members

NamePositionTenureCompensationOwnership
Stefano Landi
Executive Chairman7.33yrs€310.75kno data
Cristiano Musi
CEO & Director3.33yrsno datano data
Giovannina Domenichini
Honorary Chairperson10.33yrs€18.50kno data
Silvia Landi
Director4.08yrsno datano data
Domenico Sardano
Standing Statutory Auditor2.83yrsno datano data
Angelo Iori
Director4.08yrsno datano data
Anton Karl
Independent Director4.08yrsno datano data
Sara Fornasiero
Lead Independent Director4.33yrsno datano data
Diana Rizzo
Standing Statutory Auditor4.33yrsno datano data
Vincenzo Russi
Independent Director1.33yrsno datano data
Paolo Emanuele Maria Ferrero
Director1.33yrsno datano data
Fabio Zucchetti
Chairman of the Board of Statutory Auditors1.33yrsno datano data

4.1yrs

Average Tenure

60yo

Average Age

Experienced Board: LR's board of directors are considered experienced (4.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Landi Renzo S.p.A.
  • Ticker: LR
  • Exchange: BIT
  • Founded: 1954
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €71.775m
  • Shares outstanding: 112.50m
  • Website: https://www.landirenzogroup.com

Number of Employees


Location

  • Landi Renzo S.p.A.
  • Via Nobel 2/4/6
  • Corte Tegge
  • Cavriago
  • Reggio Emilia
  • 42025
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LRBIT (Borsa Italiana)YesCommon StockITEURJun 2007
ARQDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2007
0ND3LSE (London Stock Exchange)YesCommon StockGBEURJun 2007
LRMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 2007

Biography

Landi Renzo S.p.A. designs, produces, installs, and sells LPG and CNG fuel supply systems in Italy, Europe, America, Asia, and Rest of the World. The company offers LPG and CNG alternative fuel systems for ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 22:11
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
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.