BIT:PIRC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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

Stable Share Price: PIRC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

PIRC

-1.1%

IT Auto Components

-3.1%

IT Market


1 Year Return

-32.9%

PIRC

-22.0%

IT Auto Components

-15.8%

IT Market

Return vs Industry: PIRC underperformed the Italian Auto Components industry which returned -22% over the past year.

Return vs Market: PIRC underperformed the Italian Market which returned -15.8% over the past year.


Shareholder returns

PIRCIndustryMarket
7 Day-3.1%-1.1%-3.1%
30 Day-0.06%-1.6%-4.4%
90 Day-3.6%1.9%-3.3%
1 Year-32.9%-32.9%-20.1%-22.0%-13.8%-15.8%
3 Yearn/a-42.4%-47.1%-14.1%-21.9%
5 Yearn/a-21.3%-30.3%-5.4%-26.8%

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 compared to its fair value and its price relative to the market?

98.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PIRC (€3.64) is trading above our estimate of fair value (€2.94)

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


Price To Earnings Ratio

PE vs Industry: PIRC is poor value based on its PE Ratio (98.5x) compared to the XE Auto Components industry average (21.6x).

PE vs Market: PIRC is poor value based on its PE Ratio (98.5x) compared to the Italian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: PIRC is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Pirelli & C forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

60.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PIRC's forecast earnings growth (60.4% per year) is above the savings rate (2%).

Earnings vs Market: PIRC's earnings (60.4% per year) are forecast to grow faster than the Italian market (23.6% per year).

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

Revenue vs Market: PIRC's revenue (6% per year) is forecast to grow faster than the Italian market (3.5% per year).

High Growth Revenue: PIRC's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PIRC's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

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

33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PIRC has a large one-off loss of €63.7M impacting its June 30 2020 financial results.

Growing Profit Margin: PIRC's current net profit margins (0.8%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: PIRC's earnings have grown significantly by 33.7% per year over the past 5 years.

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

Earnings vs Industry: PIRC had negative earnings growth (-93.4%) over the past year, making it difficult to compare to the Auto Components industry average (-45.5%).


Return on Equity

High ROE: PIRC's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Pirelli & C's financial position?


Financial Position Analysis

Short Term Liabilities: PIRC's short term assets (€3.6B) exceed its short term liabilities (€2.5B).

Long Term Liabilities: PIRC's short term assets (€3.6B) do not cover its long term liabilities (€6.4B).


Debt to Equity History and Analysis

Debt Level: PIRC's debt to equity ratio (128.9%) is considered high.

Reducing Debt: Insufficient data to determine if PIRC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PIRC's debt is not well covered by operating cash flow (13%).

Interest Coverage: PIRC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.05%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

3.4yrs

Average management tenure


CEO

Marco Tronchetti Provera (72 yo)

0.67

Tenure

€4,513,980

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

Compensation vs Market: Marco's total compensation ($USD5.24M) is above average for companies of similar size in the Italian market ($USD1.77M).

Compensation vs Earnings: Marco's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marco Tronchetti Provera
Executive Vice Chairman & CEO0.67yr€4.51mno data
Andrea Livio Casaluci
General Manager of Operations2.33yrs€1.42mno data
Angelos Papadimitriou
GM – co CEO & Director0.083yrno datano data
Francesco Tanzi
Executive VP & CFO3.42yrsno datano data
Valeria Leone
Senior VP of Investor Relations3.42yrsno datano data
Nicola Verdicchio
Senior VP & Chief Legal Officer3.42yrsno datano data
Maurizio Abet
Senior VP of Communication3.42yrsno datano data
Massimo Battaini
Senior VP of Marketing & Supply Chainno datano datano data
Davide Sala
Executive VP and Chief Human Resources & Organization Officerno datano datano data
Maurizio Boiocchi
Strategic Advisor and Executive VP of Technology & Innovation3.42yrsno datano data
Roberto Righi
Executive Vice President of Commercial Replacement3.42yrsno datano data
Francesco Sala
Executive Vice President of Technical Operationsno datano datano data

3.4yrs

Average Tenure

58.5yo

Average Age

Experienced Management: PIRC's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marco Tronchetti Provera
Executive Vice Chairman & CEO0.67yr€4.51mno data
Angelos Papadimitriou
GM – co CEO & Director0.083yrno datano data
Ze'ev Goldberg
Director5yrs€90.00kno data
Laura Cioli
Independent Director3.08yrs€110.00kno data
Giorgio Bruno
Director4.5yrs€375.34k0.000050%
€ 1.8k
Xin Ping Bai
Director5yrs€145.00kno data
Xingqiang Yang
Director5yrs€90.00kno data
Francesco Fallacara
Chairman of Board of Statutory Auditors5.33yrsno datano data
Haisu Tao
Independent Director3.08yrs€90.00kno data
Zhang Haitao
Non Executive Director0.17yrno datano data
Fan Xiaohua
Independent Director3.08yrs€90.00kno data
Ning Gaoning
Chairman of the Board2.08yrs€490.00kno data

3.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: PIRC's board of directors are considered experienced (3.8 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.


Top Shareholders

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: €3.640b
  • 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 Analysis2020/09/28 03:51
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
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.