BIT:IP

Stock Analysis Report

Executive Summary

Interpump Group S.p.A., together with its subsidiaries, manufactures and markets high pressure plunger pumps in Italy, rest of Europe, North America, the Far East, Oceania, and internationally.


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.0%

IP

2.0%

IT Machinery

0.6%

IT Market


1 Year Return

3.3%

IP

-1.6%

IT Machinery

16.9%

IT Market

Return vs Industry: IP exceeded the Italian Machinery industry which returned -0.6% over the past year.

Return vs Market: IP underperformed the Italian Market which returned 18.6% over the past year.


Shareholder returns

IPIndustryMarket
7 Day1.0%2.0%0.6%
30 Day4.2%2.2%0.1%
90 Day13.3%6.7%6.1%
1 Year4.1%3.3%0.2%-1.6%22.1%16.9%
3 Year73.7%69.8%28.1%22.7%27.0%8.8%
5 Year142.4%130.8%59.1%48.9%23.4%-18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IP (€28.76) is trading above our estimate of fair value (€18.14)

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


Price To Earnings Ratio

PE vs Industry: IP is poor value based on its PE Ratio (17.7x) compared to the Machinery industry average (17.5x).

PE vs Market: IP is good value based on its PE Ratio (17.7x) compared to the Italian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: IP is poor value based on its PEG Ratio (6.7x)


Price to Book Ratio

PB vs Industry: IP is overvalued based on its PB Ratio (3.2x) compared to the IT Machinery industry average (1.9x).


Next Steps

Future Growth

How is Interpump Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IP's forecast earnings growth (2.7% per year) is above the savings rate (1.2%).

Earnings vs Market: IP's earnings (2.7% per year) are forecast to grow slower than the Italian market (8.7% per year).

High Growth Earnings: IP's earnings are forecast to grow, but not significantly.

Revenue vs Market: IP's revenue (3.8% per year) is forecast to grow faster than the Italian market (3.8% per year).

High Growth Revenue: IP's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IP's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Interpump Group performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IP has high quality earnings.

Growing Profit Margin: IP's current net profit margins (12.6%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: IP's earnings have grown by 18.8% per year over the past 5 years.

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

Earnings vs Industry: IP had negative earnings growth (-1.1%) over the past year, making it difficult to compare to the Machinery industry average (-7.6%).


Return on Equity

High ROE: IP's Return on Equity (18.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Interpump Group's financial position?


Financial Position Analysis

Short Term Liabilities: IP's short term assets (€863.0M) exceed its short term liabilities (€458.3M).

Long Term Liabilities: IP's short term assets (€863.0M) exceed its long term liabilities (€436.1M).


Debt to Equity History and Analysis

Debt Level: IP's debt to equity ratio (54.5%) is considered high.

Reducing Debt: IP's debt to equity ratio has increased from 50.6% to 54.5% over the past 5 years.

Debt Coverage: IP's debt is well covered by operating cash flow (34.7%).

Interest Coverage: IP's interest payments on its debt are well covered by EBIT (54.3x coverage).


Balance Sheet

Inventory Level: IP has a high level of physical assets or inventory.

Debt Coverage by Assets: IP's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.0%markettop25%4.1%industryaverage2.1%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: IP's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.97%).

High Dividend: IP's dividend (0.76%) is low compared to the top 25% of dividend payers in the Italian market (4.19%).


Stability and Growth of Payments

Stable Dividend: IP is not paying a notable dividend for the Italian market, therefore no need to check if payments are stable.

Growing Dividend: IP is not paying a notable dividend for the Italian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IP's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

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

4.5yrs

Average board tenure


CEO

Fulvio Montipò (75yo)

6.8yrs

Tenure

0

Mr. Fulvio Montipò founded Interpump Group SPA and has been its Chairman and Chief Executive Officer since April 2013. Mr. Montipò has been Executive Director of Interpump Group SpA. since 1977. He served  ...


CEO Compensation Analysis

Compensation vs Market: Fulvio's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD1.68M).

Compensation vs Earnings: Fulvio's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

4.5yrs

Average Tenure

62yo

Average Age

Experienced Board: IP's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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.


Management Team

  • Fulvio Montipò (75yo)

    Chairman & CEO

    • Tenure: 6.8yrs
  • Carlo Banci

    CFO & Chief Reporting Officer

    • Luca Mirabelli

      Head of IR


      Board Members

      • Fulvio Montipò (75yo)

        Chairman & CEO

        • Tenure: 6.8yrs
      • Giovanni Tamburi (65yo)

        Non-Executive Director

        • Tenure: 15yrs
        • Compensation: €55.00k
      • Paolo Marinsek (69yo)

        Deputy Chairman

        • Tenure: 16.8yrs
      • Stefania Petruccioli (52yo)

        Independent Director

        • Tenure: 4.5yrs
        • Compensation: €33.00k
      • Angelo Busani (59yo)

        Independent Director

        • Tenure: 2.7yrs
      • Antonia Di Bella (54yo)

        Independent Director

        • Tenure: 2.7yrs
      • Franco Garilli (68yo)

        Lead Independent Director

        • Tenure: 4.4yrs
        • Compensation: €45.00k
      • Paola Tagliavini (51yo)

        Independent Director

        • Tenure: 5.8yrs
        • Compensation: €65.00k
      • Marcello Margotto

        Independent Director

        • Tenure: 4.4yrs
        • Compensation: €18.00k
      • Fabrizio Fagnola

        Chairman of Statutory Auditor Board

        Company Information

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


        Key Information

        • Name: Interpump Group S.p.A.
        • Ticker: IP
        • Exchange: BIT
        • Founded:
        • Industry: Industrial Machinery
        • Sector: Capital Goods
        • Market Cap: €3.099b
        • Shares outstanding: 106.58m
        • Website: https://www.interpumpgroup.it

        Number of Employees


        Location

        • Interpump Group S.p.A.
        • Via E. Fermi 25
        • Sant'Ilario d'Enza
        • Reggio Emilia
        • 42049
        • Italy

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        IPBIT (Borsa Italiana)YesOrdinary SharesITEURDec 1996
        0EWDLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 1996
        IPGL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1996
        IPMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 1996

        Biography

        Interpump Group S.p.A., together with its subsidiaries, manufactures and markets high pressure plunger pumps in Italy, rest of Europe, North America, the Far East, Oceania, and internationally. Its Water Jetting sector provides high pressure pumps and pumping systems that are used in a range of industrial sectors for the conveyance of fluids. This sector’s high-pressure plunger pumps are the primary components of high pressure cleaners, as well as used for car wash installations, forced lubrication systems for machine tools, and inverse osmosis systems for seawater desalination plants. Its very high-pressure pumps and systems are used for cleaning surfaces, ship hulls, and various types of hoses; removing machining burr; cutting and removing cement, asphalt, and paint coatings from stone, cement, and metal surfaces; and cutting solid materials. This sector also engages in drawing, blanking, and pressing sheet metals; and providing high pressure homogenizers, mixers, agitators, piston pumps, values, and other machines for use in the food processing, chemicals, cosmetics, and pharmaceutical sectors. The company’s Hydraulics sector produces and sells power take-offs that transmit drive from an industrial vehicle engine or transmission to power a range of ancillary services through hydraulic components; hydraulic cylinders that are components of hydraulic systems of various vehicle types; front-end and underbody cylinders that are primarily used on industrial vehicles in the construction sector; double acting cylinders, which are used in a range of applications, such as earthmoving machinery, agricultural machinery, cranes and truck cranes, waste compactors, etc.; hydraulic lines and fittings that are used in hydraulic equipment and high pressure water systems; and pumps, directional controls, valves, other hydraulic components, and ancillary products. It also engages in the research and development activities. The company is based in Sant'Ilario d'Enza, Italy. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/20 20:49
        End of Day Share Price2020/01/20 00:00
        Earnings2019/09/30
        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.