BIT:CARR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Carraro S.p.A. manufactures and sells power transmission systems for tractors and off-highway vehicles in Italy, other European countries, North and South America, Asia, and other non-European countries.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

CARR

1.4%

IT Machinery

1.9%

IT Market


1 Year Return

-25.7%

CARR

-4.8%

IT Machinery

-6.6%

IT Market

Return vs Industry: CARR underperformed the Italian Machinery industry which returned -7.2% over the past year.

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


Shareholder returns

CARRIndustryMarket
7 Day-1.3%1.4%1.9%
30 Day-8.4%7.3%-1.9%
90 Day-5.9%2.9%10.7%
1 Year-25.7%-25.7%-4.4%-4.8%-4.2%-6.6%
3 Year-54.6%-58.9%-19.4%-22.1%-4.9%-13.6%
5 Year-5.0%-25.7%33.3%25.7%-7.4%-36.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CARR (€1.36) is trading above our estimate of fair value (€0.31)

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


Price To Earnings Ratio

PE vs Industry: CARR is unprofitable, so we can't compare its PE Ratio to the IT Machinery industry average.

PE vs Market: CARR is unprofitable, so we can't compare its PE Ratio to the Italian market.


Price to Earnings Growth Ratio

PEG Ratio: CARR is unprofitable, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CARR is overvalued based on its PB Ratio (1.6x) compared to the IT Machinery industry average (1.3x).


Next Steps

Future Growth

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

97.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CARR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CARR's is expected to become profitable in the next 3 years.

Revenue vs Market: CARR's revenue (5.1% per year) is forecast to grow slower than the Italian market (5.2% per year).

High Growth Revenue: CARR's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Carraro performed over the past 5 years?

47.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CARR is currently unprofitable.

Growing Profit Margin: CARR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CARR is unprofitable, but has reduced losses over the past 5 years at a rate of 47.2% per year.

Accelerating Growth: Unable to compare CARR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CARR is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-30.7%).


Return on Equity

High ROE: CARR has a negative Return on Equity (-1.57%), as it is currently unprofitable.


Next Steps

Financial Health

How is Carraro's financial position?


Financial Position Analysis

Short Term Liabilities: CARR's short term assets (€348.4M) exceed its short term liabilities (€258.2M).

Long Term Liabilities: CARR's short term assets (€348.4M) exceed its long term liabilities (€264.2M).


Debt to Equity History and Analysis

Debt Level: CARR's debt to equity ratio (459.2%) is considered high.

Reducing Debt: CARR's debt to equity ratio has reduced from 781.4% to 459.2% over the past 5 years.

Debt Coverage: CARR's debt is well covered by operating cash flow (21.8%).

Interest Coverage: CARR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

7.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CARR's dividend (7.35%) is higher than the bottom 25% of dividend payers in the Italian market (1.87%).

High Dividend: CARR's dividend (7.35%) is in the top 25% of dividend payers in the Italian market (5.23%)


Stability and Growth of Payments

Stable Dividend: CARR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CARR has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.9%), CARR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Alberto Negri

5.83yrs

Tenure

€159,000

Compensation

Mr. Alberto Negri has been the Chief Executive Officer of Carraro SpA since October 29, 2014. Mr. Negri served as Managing Director of Gear World S.p.A. since March 01, 2012. Mr. Negri has accrued signific ...


Leadership Team

NamePositionTenureCompensationOwnership
Alberto Negri
CEO & Director5.83yrs€159.00k0.060%
€ 63.2k
Mario Carraro
Presidentno data€737.00k5.67%
€ 5.9m
Enrico Gomiero
CFO, Financial Reporting Officer & Director2.58yrsno data0.023%
€ 24.3k
Mario Tolusso
Human Resources & Legal Affairs Director9.58yrsno datano data
Cristiano Checco
Risk, Compliance & CSR Director0.083yrno datano data
Massimiliano Franz
Head of Communicationno datano datano data
Andrea Conchetto
Managing Director0.67yrno datano data

3.3yrs

Average Tenure

Experienced Management: CARR's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alberto Negri
CEO & Director5.83yrs€159.00k0.060%
€ 63.2k
Enrico Gomiero
CFO, Financial Reporting Officer & Director2.58yrsno data0.023%
€ 24.3k
Enrico Carraro
Chairman of the Boardno data€900.00kno data
Tomaso Carraro
Deputy Chairmanno data€250.00kno data
Riccardo Arduini
Independent Director4.67yrsno datano data
Saverio Bozzolan
Regular Auditor11.33yrsno datano data
Marina Pittini
Independent Directorno data€90.00kno data
Fabio Buttignon
Independent Directorno datano datano data
Stefania Centorbi
Regular Auditorno datano datano data
Marina Manna
Independent Directorno datano datano data
Virginia Carraro
Director2.58yrsno datano data
Carlo Pesce
Chairman of Board of Statutory Auditors2.58yrsno datano data

3.6yrs

Average Tenure

Experienced Board: CARR's board of directors are considered experienced (3.6 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

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


Key Information

  • Name: Carraro S.p.A.
  • Ticker: CARR
  • Exchange: BIT
  • Founded: 1932
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: €104.842m
  • Shares outstanding: 77.09m
  • Website: https://www.carraro.com

Number of Employees


Location

  • Carraro S.p.A.
  • Via Olmo, 37
  • Campodarsego
  • Padova
  • 35011
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CARRBIT (Borsa Italiana)YesOrdinary SharesITEURDec 1995
0N7LLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 1995
CARRMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 1995

Biography

Carraro S.p.A. manufactures and sells power transmission systems for tractors and off-highway vehicles in Italy, other European countries, North and South America, Asia, and other non-European countries. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 21:38
End of Day Share Price2020/08/07 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.