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1. Company Snapshot

1.a. Company Description

Piaggio & C.SpA, together with its subsidiaries, develops, manufactures, and distributes two-wheeler and commercial motor vehicles.The company provides two-wheelers, including scooters, motorcycles, and mopeds, as well as related spare parts and accessories under the Piaggio, Vespa, Aprilia, Moto Guzzi, Gilera, Derbi, and Scarabeo brands.


It also offers three-and four-wheeler light commercial vehicles, as well as related spare parts and accessories for commercial and private use under the Ape and Porter brands; and smart robots for transportation.In addition, the company sells engines to third parties; conducts two-wheeler sports championships; and provides technical services.It distributes its vehicles primarily through dealers and importers in Europe, the Middle East, Africa, the Americas, the Asia Pacific, and India.


The company was founded in 1884 and is headquartered in Pontedera, Italy.Piaggio & C.SpA is a subsidiary of IMMSI S.p.A.

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1.b. Last Insights on PIA

Negative drivers behind Piaggio & C. SpA's recent performance include revenue challenges, which have hindered the company's growth. Despite achieving a record EBITDA margin in 2024, Piaggio's revenue has been impacted by an "anomalous" economy. Furthermore, the company's focus on innovation and market stability, such as its first electric vehicle launch and strategic investments, may not yet be yielding significant short-term results. Additionally, the company's proposed payment of a final dividend of 4 euro cents for 2024, while positive, may not be enough to offset the revenue headwinds.

1.c. Company Highlights

2. Piaggio's Resilient Performance Amidst Global Challenges

Piaggio's first half 2025 financial results demonstrate a resilient performance, with a gross margin of 30.4%, one of the best achieved by the group, and an EBITDA margin of 17.3% in Q2. Despite a 13% decline in revenues, driven by weak markets in Europe, the US, and China, the company's net financial position remains stable compared to December 2024. The EPS came out at €0.09, in line with estimates. According to CEO Michele Colaninno, the results are attributed to the group's ability to maintain financial stability amidst global challenges.

Publication Date: Jul -30

📋 Highlights
  • Strong Profitability:: Gross margin at 30.4%, one of the best for the group, with Q2 EBITDA margin at 17.3%.
  • Revenue Decline:: Revenues dropped 13% due to weak markets in Europe, the US, and China.
  • Stable Financial Position:: Net financial position remains stable compared to December 2024.
  • Market Share Loss:: Europe market share down 1% year-on-year, mainly due to EURO5 destocking.
  • Positive Commercial Vehicle Performance:: Commercial vehicles in EMEA and Americas show volume growth but severe revenue decline.

Financial Performance

The company's revenue decline was driven by weak markets in Europe, the US, and China. However, the gross margin and EBITDA margin remained stable, showcasing the company's ability to manage costs. The net financial position remains stable compared to December 2024, indicating a solid financial foundation. As Colaninno stated, "We expect a low signal of recovery in Asia, particularly in Vietnam and Thailand, and a definitive finish of EURO5 destocking in Europe."

Segmental Performance

In Europe, Piaggio lost 1% of market share compared to last year, mainly due to EURO5 destocking. However, Colaninno expects the market share to improve in Q3, driven by new product launches. In India, the market is challenging due to the introduction of low-margin electric vehicles, but Piaggio is launching new thermic vehicles to compete. The company's commercial vehicles in EMEA and Americas show a positive performance in volume terms but a severe decline in revenue terms.

Outlook and Valuation

Colaninno expects a 10% growth in revenues and EBITDA in the second half to be achievable, but it's difficult to project objectively. He expects Q3 to show better top-line numbers compared to last year. The company will focus on maintaining its gross margin and managing costs to achieve a strong EBITDA performance. At current prices, the stock trades at a P/E ratio of 12.13, a P/B ratio of 1.65, and an EV/EBITDA of 4.74, indicating a relatively attractive valuation. The dividend yield stands at 7.89%, providing a decent return to investors.

3. NewsRoom

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This 2-Door Vespa Draws Crowds From Car Shows to School Drop-Offs

Nov -16

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Piaggio & C. SpA (PIAGF) Q1 2025 Earnings Call Highlights: Navigating Market Challenges ...

May -12

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Piaggio & C. SpA (PGGCY) Q4 2024 Earnings Call Highlights: Record EBITDA Margin and ...

Mar -05

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Vespa maker Piaggio posts record margin despite 'anomalous' economy

Mar -04

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Tod's founder Diego Della Valle splits Piaggio stake with brother Andrea

Dec -17

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Italian Vespa maker Piaggio launches AI-driven factory robot

Mar -12

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Vespa maker Piaggio posts record nine-month profit

Oct -30

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Famed Italian dealmaker and Piaggio CEO Colaninno dies

Aug -19

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.57%)

6. Segments

Two-wheelers

Expected Growth: 4.5%

Piaggio's 4.5% growth in two-wheelers is driven by increasing demand for fuel-efficient vehicles, rising urbanization, and growing middle-class population in emerging markets. Additionally, the company's focus on innovative products, such as electric and hybrid scooters, and strategic partnerships with local players have contributed to its growth momentum.

Commercial Vehicles

Expected Growth: 4.8%

Piaggio's commercial vehicles segment growth of 4.8% is driven by increasing demand for last-mile delivery solutions, urbanization, and e-commerce growth. Additionally, the company's focus on innovative and sustainable products, such as electric and hybrid vehicles, is attracting environmentally conscious customers. Strengthening distribution networks and strategic partnerships in emerging markets also contribute to the segment's growth.

7. Detailed Products

Vespa Scooters

Iconic and stylish scooters designed for urban mobility

Aprilia Motorcycles

High-performance motorcycles designed for racing and touring

Piaggio Commercial Vehicles

Three-wheelers and four-wheelers designed for last-mile delivery and transportation

Moto Guzzi Motorcycles

Premium motorcycles designed for touring and cruising

Ape Commercial Vehicles

Three-wheelers and four-wheelers designed for commercial use

Piaggio Electric Vehicles

Electric scooters and motorcycles designed for sustainable mobility

8. Piaggio & C. SpA's Porter Forces

Forces Ranking

Threat Of Substitutes

Piaggio & C. SpA faces moderate threat from substitutes, as customers have limited alternatives for its scooters and motorcycles. However, the company's strong brand reputation and product offerings help mitigate this threat.

Bargaining Power Of Customers

Piaggio & C. SpA's customers have limited bargaining power due to the company's strong brand reputation and diverse product offerings. This reduces the likelihood of customers negotiating prices or switching to competitors.

Bargaining Power Of Suppliers

Piaggio & C. SpA's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for critical components. However, the company's strong relationships with suppliers help mitigate this risk.

Threat Of New Entrants

Piaggio & C. SpA faces low threat from new entrants due to the high barriers to entry in the motorcycle and scooter industry. The company's strong brand reputation, established distribution networks, and regulatory hurdles make it difficult for new entrants to compete.

Intensity Of Rivalry

Piaggio & C. SpA operates in a highly competitive industry, with several established players vying for market share. The company faces intense rivalry from competitors such as Honda, Yamaha, and Suzuki, which can lead to pricing pressures and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.14%
Debt Cost 9.79%
Equity Weight 40.86%
Equity Cost 9.79%
WACC 9.79%
Leverage 144.72%

11. Quality Control: Piaggio & C. SpA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.9$

Current Price

1.9$

Potential

-0.00%

Expected Cash-Flows