PIRC Stock Analysis: Pirelli & C | MI
Auto Parts | MI, Italy | Market Cap: 7.258m EUR | 12M Return: 20% | IT0005278236 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 9.44M
EPS Trend: 48.8%
Qual. Beats: 0
Rev. Trend: 67.5%
Qual. Beats: 2
Warnings
Tailwinds
No distinct edge detected
Seasonality 9 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Pirelli & C. S.p.A. (PIRC) is a global tire manufacturer founded in 1872 and headquartered in Milan, Italy. The company designs, produces, and sells tires across three main vehicle categories: cars, motorcycles, and bicycles, serving markets in Europe, North America, Asia-Pacific, South America, Russia, India, the Middle East, and Africa.
Pirelli operates an extensive brand portfolio, including premium car tire lines (P ZERO, Cinturato, Scorpion), a wide range of motorcycle tires under both Pirelli and Metzeler labels, and a growing bicycle tire offering. The company also supplies motorsport applications (racing and rally) and a collezione line for classic and collector cars.
The business model combines premium, technology-led product differentiation with a diversified distribution approach. Pirelli markets proprietary technologies such as Run Flat and Seal Inside (puncture resilience), Pirelli Noise Cancelling System (PNCS), and Elect - a dedicated tire line for electric vehicles. Distribution is handled through company-owned stores alongside sales to vehicle manufacturers, retailers, specialized distributors, and car dealers, with value-added services such as car valet and courtesy car offerings.
Operating in the Consumer Discretionary sector (Tires & Rubber sub-industry), Pirellis demand is closely tied to global automotive production and replacement cycles, while its premium and motorsport positioning differentiates it from volume competitors. The expansion into EV-specific tires and the cycling segment reflects the industrys broader shift toward electrification and active mobility trends.
- High-Value tire segment revenue mix expands margins
- Raw material cost volatility pressures operating margins
- European premium auto production weakness curbs tire demand
| Net Income: 524.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -3.11 > 1.0 |
| NWC/Revenue: 14.56% < 20% (prev 7.92%; Δ 6.64% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.15b > Net Income 524.2m |
| Net Debt (2.52b) to EBITDA (1.49b): 1.69 < 3 |
| Current Ratio: 1.33 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.21b) vs 12m ago 20.94% < -2% |
| Gross Margin: 56.52% > 18% (prev 61.90%; Δ -5.38% > 0.5%) |
| Asset Turnover: 51.14% > 50% (prev 52.62%; Δ -1.48% > 0%) |
| Interest Coverage Ratio: 2.52 > 6 (EBIT TTM 972.0m / Interest Expense TTM 386.0m) |
| A: 0.07 (Total Current Assets 3.95b - Total Current Liabilities 2.96b) / Total Assets 13.7b |
| B: 0.02 (Retained Earnings 273.1m / Total Assets 13.7b) |
| C: 0.07 (EBIT TTM 972.0m / Avg Total Assets 13.3b) |
| D: 0.92 (Book Value of Equity 6.40b / Total Liabilities 6.98b) |
| Altman-Z'' = 1.99 = BBB |
| DSRI: 1.00 (Receivables 1.10b/1.11b, Revenue 6.81b/6.82b) |
| GMI: 1.10 (GM 61.90% / 56.52%) |
| AQI: 0.94 (AQ_t 0.43 / AQ_t-1 0.46) |
| SGI: 1.00 (Revenue 6.81b / 6.82b) |
| TATA: -0.05 (NI 524.2m - CFO 1.15b) / TA 13.7b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of October 15, 2026, the stock is trading at EUR 6.69 with a total of 1,282,070 shares traded. Over the past week, the price has changed by +0.30%, over one month by +6.19%, over three months by +3.28% and over the past year by +20.02%.
Current recommended Stop Loss: 6.40 (which is 4.3% or 2.2 ATR below the current price).
Pirelli & C has no consensus analysts rating.
P/E Trailing = 13.38
P/E Forward = 10.2669
P/S = 1.0333
P/B = 1.1007
Revenue TTM = 6.81b EUR
EBIT TTM = 972.0m EUR
EBITDA TTM = 1.49b EUR
Long Term Debt = 2.39b EUR (from longTermDebt, last quarter)
Short Term Debt = 389.6m EUR (from shortTermDebt, last quarter)
Debt = 3.59b EUR (from shortLongTermDebtTotal, last quarter) + Leases 459.3m
Net Debt = 2.52b EUR (calculated: Debt 3.59b - CCE 1.07b)
Enterprise Value = 9.78b EUR (7.26b + Debt 3.59b - CCE 1.07b)
Interest Coverage Ratio = 2.52 (Ebit TTM 972.0m / Interest Expense TTM 386.0m)
EV/FCF = 15.00x (Enterprise Value 9.78b / FCF TTM 651.9m)
FCF Yield = 6.67% (FCF TTM 651.9m / Enterprise Value 9.78b)
FCF Margin = 9.57% (FCF TTM 651.9m / Revenue TTM 6.81b)
Net Margin = 7.70% (Net Income TTM 524.2m / Revenue TTM 6.81b)
Gross Margin = 56.52% ((Revenue TTM 6.81b - Cost of Revenue TTM 2.96b) / Revenue TTM)
Gross Margin QoQ = 61.15% (prev 40.13%)
Tobins Q-Ratio = 0.72 (Enterprise Value 9.78b / Total Assets 13.7b)
Interest Expense / Debt = 10.75% (Interest Expense 386.0m / Debt 3.59b)
Taxrate = 30.55% (248.8m / 814.6m)
NOPAT = 675.1m (EBIT 972.0m * (1 - 30.55%))
Current Ratio = 1.33 (Total Current Assets 3.95b / Total Current Liabilities 2.96b)
Debt / Equity = 0.56 (Debt 3.59b / totalStockholderEquity, last quarter 6.40b)
Debt / EBITDA = 1.69 (Net Debt 2.52b / EBITDA 1.49b)
Debt / FCF = 3.87 (Net Debt 2.52b / FCF TTM 651.9m)
Total Stockholder Equity = 6.24b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.94% (Net Income 524.2m / Total Assets 13.7b)
RoE = 8.40% (Net Income TTM 524.2m / Total Stockholder Equity 6.24b)
RoCE = 11.27% (EBIT 972.0m / Capital Employed (Equity 6.24b + L.T.Debt 2.39b))
RoIC = 6.28% (NOPAT 675.1m / Invested Capital 10.7b)
WACC = 7.59% (E(7.26b)/V(10.8b) * Re(7.65%) + D(3.59b)/V(10.8b) * Rd(10.75%) * (1-Tc(0.31)))
Discount Rate = 7.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 70.35 | Cagr: 8.82%
[DCF] Terminal Value 73.10% ; FCFF base≈800.2m ; Y1≈701.7m ; Y5≈566.9m
[DCF] Fair Price = 6.07 (EV 9.10b - Net Debt 2.52b = Equity 6.58b / Shares 1.08b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 48.77 | EPS CAGR: 4.28% | SUE: 0.62 | # QB: 0
Revenue Correlation: 67.48 | Revenue CAGR: 0.78% | SUE: 2.55 | # QB: 2
EPS current Quarter (2026-09-30): EPS=0.13 | Chg30d=+6.63% | Revisions=+0% | Analysts=2
EPS current Year (2026-12-31): EPS=0.53 | Chg30d=-0.81% | Revisions=-40% | GrowthEPS=-9.9% | GrowthRev=+1.1%
EPS next Year (2027-12-31): EPS=0.57 | Chg30d=-1.63% | Revisions=-40% | GrowthEPS=+8.6% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: -57% (up=0, down=4)