BIT:PIRC

Stock Analysis Report

Executive Summary

Pirelli & C. S.p.A. manufactures and supplies tires for cars, motorcycles, and bicycles worldwide.

Snowflake

Fundamentals

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has Pirelli & C's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.07%

PIRC

-1.1%

IT Auto Components

-0.2%

IT Market


1 Year Return

-20.4%

PIRC

-20.6%

IT Auto Components

-0.3%

IT Market

PIRC matched the Auto Components industry (-20.4%) over the past year.

PIRC underperformed the Market in Italy which returned 0.1% over the past year.


Share holder returns

PIRCIndustryMarket
7 Day0.07%-1.1%-0.2%
30 Day20.8%15.2%4.4%
90 Day2.9%-1.3%1.7%
1 Year-17.9%-20.4%-18.4%-20.6%4.0%-0.3%
3 Yearn/a-14.7%-21.5%31.4%13.4%
5 Yearn/a17.2%3.9%13.3%-31.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pirelli & C undervalued based on future cash flows and its price relative to the stock market?

10.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Pirelli & C is good value based on earnings compared to the IT Auto Components industry average.

Pirelli & C is good value based on earnings compared to the Italy market.


Price Based on Expected Growth

Pirelli & C is poor value based on expected growth next year.


Price Based on Value of Assets

Pirelli & C is good value based on assets compared to the IT Auto Components industry average.


Next Steps

Future Growth

How is Pirelli & C expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pirelli & C's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Pirelli & C's earnings are expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Pirelli & C's revenue growth is expected to exceed the Italy market average.

Pirelli & C's earnings growth is positive but not above the Italy market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Pirelli & C performed over the past 5 years?

63.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pirelli & C has delivered over 20% year on year earnings growth in the past 5 years.

Pirelli & C's 1-year earnings growth is less than its 5-year average (49.6% vs 63.9%)

Pirelli & C's earnings growth has exceeded the Europe Auto Components industry average in the past year (49.6% vs -6.3%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Pirelli & C's financial position?


Financial Position Analysis

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

Pirelli & C's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Pirelli & C's level of debt (107.2%) compared to net worth is high (greater than 40%).

Unable to establish if Pirelli & C's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (18.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is Pirelli & C's current dividend yield, its reliability and sustainability?

3.78%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Pirelli & C's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (1.99%).

Pirelli & C's dividend is below the markets top 25% of dividend payers in Italy (4.36%).

It is too early to tell whether Pirelli & C has stable dividend payments.

Pirelli & C only just started paying a dividend, it is too early to tell if payments are increasing.


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 (2.7x coverage).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Marco Tronchetti Provera (71yo)

27.7yrs

Tenure

€14,946,556

Compensation

Mr. Marco Tronchetti Provera serves as Executive Vice Chairman and Chief Executive Officer at Pirelli & C. S.p.A. He has been the Chief Executive Officer of PIRELLI & C. Società per Azioni (C. S.P.A) since ...


CEO Compensation Analysis

Marco's remuneration is higher than average for companies of similar size in Italy.

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


Management Age and Tenure

2.4yrs

Average Tenure

57.5yo

Average Age

The tenure for the Pirelli & C management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

The average tenure for the Pirelli & C board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy€256,25004 Jun 19
CAMFIN S.p.A.
EntityCompany
Shares50,000
Max Price€5.13
Buy€988,33903 Jun 19
CAMFIN S.p.A.
EntityCompany
Shares192,000
Max Price€5.15
Buy€1,000,66331 May 19
CAMFIN S.p.A.
EntityCompany
Shares194,837
Max Price€5.14
Buy€297,28012 Dec 18
CAMFIN S.p.A.
EntityCompany
Shares50,000
Max Price€5.95
Buy€1,181,22025 Oct 18
CAMFIN S.p.A.
EntityCompany
Shares200,000
Max Price€5.91
Buy€1,187,26024 Oct 18
CAMFIN S.p.A.
EntityCompany
Shares200,000
Max Price€5.94
Buy€1,173,26023 Oct 18
CAMFIN S.p.A.
EntityCompany
Shares200,000
Max Price€5.87

Ownership Breakdown


Management Team

  • Marco Tronchetti Provera (71yo)

    Executive Deputy Chairman & CEO

    • Tenure: 27.7yrs
    • Compensation: €14.95m
  • Maurizio Abet (51yo)

    Senior VP of Communication

    • Tenure: 2.4yrs
  • Nicola Verdicchio (57yo)

    Senior VP & Chief Legal Officer

    • Tenure: 2.4yrs
  • Valeria Leone (58yo)

    Senior VP of Investor Relations

    • Tenure: 2.4yrs
  • Francesco Tanzi (55yo)

    Executive VP & CFO

    • Tenure: 2.4yrs
  • Massimo Battaini (58yo)

    Senior VP of Marketing & Supply Chain

    • Tenure: 0yrs
  • Maurizio Boiocchi (69yo)

    Strategic Advisor and Executive VP of Technology & Innovation

    • Tenure: 2.4yrs
  • Andrea Livio Casaluci

    General Manager of Operations

    • Tenure: 0.8yrs
  • Roberto Righi (54yo)

    Executive Vice President of Commercial Replacement

    • Tenure: 2.4yrs
  • Davide Sala

    Executive VP and Chief Human Resources & Organization Officer

    • Tenure: 0yrs

Board Members

  • Domenico De Sole (75yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: €150.00k
  • Marco Tronchetti Provera (71yo)

    Executive Deputy Chairman & CEO

    • Tenure: 27.7yrs
    • Compensation: €14.95m
  • Giorgio Bruno (59yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: €1.37m
  • Xin Ping Bai (51yo)

    Director

    • Tenure: 4yrs
    • Compensation: €145.00k
  • Xingqiang Yang (52yo)

    Director

    • Tenure: 4yrs
    • Compensation: €90.00k
  • Francesco Fallacara (55yo)

    Chairman of Board of Statutory Auditors

    • Tenure: 4.3yrs
  • Haisu Tao (70yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: €90.00k
  • Andrea Livio Casaluci

    General Manager of Operations

    • Tenure: 0.8yrs
  • Fan Xiaohua (45yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: €90.00k
  • Ning Gaoning (61yo)

    Chairman of the Board

    • Tenure: 1.1yrs
    • Compensation: €197.34k

Company Information

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


Key Information

  • Name: Pirelli & C. S.p.A.
  • Ticker: PIRC
  • Exchange: BIT
  • Founded: 1872
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: €5.664b
  • Shares outstanding: 1.00b
  • Website: https://www.pirelli.com

Number of Employees


Location

  • Pirelli & C. S.p.A.
  • Viale Piero e Alberto Pirelli n. 25
  • Milan
  • Milan
  • 20126
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 2017
0P1RLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2017
PIRCBIT (Borsa Italiana)YesOrdinary SharesITEUROct 2017
2PIDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2017
PIRCMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2017
PLLI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2017

Biography

Pirelli & C. S.p.A. manufactures and supplies tires for cars, motorcycles, and bicycles worldwide. The company provides premium, specialty, super specialty, and prestige tires. It offers automotive product ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 21:44
End of Day Share Price2019/09/20 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.