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1. Company Snapshot

1.a. Company Description

De'Longhi S.p.A., together with its subsidiaries, manufactures and distributes coffee making products, food preparation and cooking machines, air conditioners and heaters, and home care products.The company provides its products primarily under the De'Longhi, Kenwood, Braun, Nespresso, Nutribullet, Magic Bullet, and Ariete brands.It has operation in Europe, the Middle East, India, Africa, the Asia/Pacific, and the Americas.


The company is headquartered in Treviso, Italy.De'Longhi S.p.A. is a subsidiary of De Longhi Industrial S.A.

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1.b. Last Insights on DLG

De' Longhi S.p.A.'s recent performance was driven by another record quarter, with revenues reaching €877 million, up 11.5% at constant currency. The company's adjusted EBITDA margin stood at 17.0%. Guidance was raised, indicating a positive outlook. This strong performance is likely due to the company's continued growth and operational efficiency. The recent earnings release demonstrated a significant increase in revenues, suggesting a favorable business condition. The raised guidance implies management's confidence in the company's future prospects.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.63%)

6. Segments

Coffee

Expected Growth: 6.5%

De'Longhi S.p.A.'s 6.5% growth in coffee segment is driven by increasing demand for premium and single-serve coffee machines, expansion in emerging markets, and strategic partnerships. Additionally, the company's focus on innovation, sustainability, and digitalization of products has contributed to its growth. The coffee culture trend and rising disposable income in key markets have also fueled the segment's growth.

Cooking and Food Preparation

Expected Growth: 6.8%

De'Longhi S.p.A.'s 6.8% growth in Cooking and Food Preparation is driven by increasing demand for premium kitchen appliances, expanding distribution channels, and strategic partnerships. Additionally, the company's focus on innovative products, such as smart cooking solutions and eco-friendly designs, resonates with environmentally conscious and tech-savvy consumers, further fueling growth.

Comfort

Expected Growth: 7.2%

De'Longhi's 7.2% growth is driven by increasing demand for premium coffee machines, expansion in Asia and Latin America, and a strong online presence. Additionally, the company's focus on innovation, sustainability, and strategic partnerships have contributed to its growth momentum.

Cleaning and Ironing

Expected Growth: 6.2%

De'Longhi S.p.A.'s 6.2% growth in Cleaning and Ironing segment is driven by increasing demand for premium home appliances, expanding product lines, and strategic partnerships. Additionally, the company's focus on innovative designs, energy efficiency, and digitalization of products has contributed to the growth. Furthermore, the rising trend of smart homes and increasing consumer spending on household appliances have also fueled the segment's growth.

Other

Expected Growth: 6.9%

De'Longhi S.p.A.'s 6.9% growth in the 'Other' segment is driven by increasing demand for premium coffee machines, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, such as the introduction of smart coffee machines, has contributed to the growth. Furthermore, the 'Other' segment has benefited from the company's diversification strategy, which has reduced its dependence on traditional coffee machine sales.

7. Detailed Products

Coffee Machines

De'Longhi offers a wide range of coffee machines, including espresso machines, drip coffee makers, and single-serve coffee makers, designed to provide high-quality coffee at home.

Kettles

De'Longhi's kettles are designed for fast and efficient boiling, with features such as rapid boiling, keep warm function, and advanced safety features.

Toasters

De'Longhi's toasters are designed for ease of use and convenience, with features such as defrosting, reheating, and variable browning control.

Blenders

De'Longhi's blenders are designed for high-performance blending, with features such as powerful motors, multiple speed settings, and advanced blade design.

Food Processors

De'Longhi's food processors are designed for efficient food preparation, with features such as multiple speed settings, pulse function, and interchangeable blades.

Air Conditioners

De'Longhi's air conditioners are designed for efficient cooling, with features such as inverter technology, remote control, and advanced air purification systems.

Heaters

De'Longhi's heaters are designed for efficient and safe heating, with features such as advanced safety features, adjustable thermostats, and energy-efficient designs.

Air Purifiers

De'Longhi's air purifiers are designed to remove pollutants and allergens from the air, with features such as HEPA filters, advanced sensors, and quiet operation.

8. De'Longhi S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

De'Longhi S.p.A. faces moderate threat from substitutes, as consumers have limited alternatives for coffee machines and other home appliances. However, the rise of single-serve coffee makers and coffee pods poses a moderate threat to De'Longhi's traditional espresso machine business.

Bargaining Power Of Customers

De'Longhi S.p.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and wide distribution network limit customers' ability to negotiate prices.

Bargaining Power Of Suppliers

De'Longhi S.p.A. relies on a network of suppliers for components and raw materials. While the company has some bargaining power due to its size, suppliers of specialized components may have some negotiating power, particularly if they are sole suppliers.

Threat Of New Entrants

The threat of new entrants is low in the coffee machine and home appliance industry, as it requires significant investment in research and development, manufacturing, and marketing. De'Longhi S.p.A.'s established brand and distribution network also create barriers to entry.

Intensity Of Rivalry

The coffee machine and home appliance industry is highly competitive, with several established players competing for market share. De'Longhi S.p.A. faces intense rivalry from companies like Nespresso, Keurig, and Philips, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.75%
Debt Cost 3.95%
Equity Weight 67.25%
Equity Cost 10.28%
WACC 8.21%
Leverage 48.71%

11. Quality Control: De'Longhi S.p.A. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
De'Longhi

A-Score: 6.2/10

Value: 5.4

Growth: 5.7

Quality: 6.8

Yield: 6.9

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
DS Smith

A-Score: 5.7/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 4.4

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
NEXT

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Howden Joinery

A-Score: 5.4/10

Value: 4.6

Growth: 5.7

Quality: 6.9

Yield: 4.4

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Redrow

A-Score: 4.9/10

Value: 6.7

Growth: 3.8

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
SEB

A-Score: 3.6/10

Value: 5.8

Growth: 3.3

Quality: 2.3

Yield: 6.9

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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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

37.24$

Current Price

37.24$

Potential

-0.00%

Expected Cash-Flows