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1. Company Snapshot

1.a. Company Description

Amplifon S.p.A. retails hearing care products and services that help people rediscover various emotions of sound.The company offers ampli-easy, ampli-mini, ampli-connect, and ampli-energy hearing devices.It also provides fitting of customized products.


As of March 18, 2022, the company operated a network of approximately 9,200 points of sale in 25 countries and 5 continents.The company also sells its products through 1,350 franchisees.It has operations in Europe, the Middle East, Africa, the United States, Asia, and Oceania.


The company was founded in 1950 and is headquartered in Milan, Italy.

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1.b. Last Insights on AMP

Amplifon's recent struggles stem from a challenging operating environment, which has led to difficulties in meeting its 2025 outlook. The hearing aid maker's slashed guidance is a significant concern, as it indicates a slowdown in its business. Additionally, the company's inability to navigate the current market conditions has raised concerns about its ability to execute its strategy effectively.

1.c. Company Highlights

2. Amplifon's Q3 2025 Earnings: A Mixed Bag

Amplifon's financial performance in Q3 2025 was marked by a 2.4% growth in sales at constant exchange rates, with the appreciation of the euro having a negative impact of around minus 3%. The adjusted EBITDA margin was 19.1%, down 110 basis points year-over-year. The company's adjusted net profit was approximately EUR 19 million, reflecting the seasonally smallest quarter of the year. Earnings per share (EPS) came in at 0.08818, significantly below analyst estimates of 0.2685. The revenue growth was mainly driven by EMEA's return to positive organic growth, thanks to a significant improvement in the performance in Southern Europe.

Publication Date: Oct -31

📋 Highlights
  • Global Sales Growth:: Sales increased by 2.4% at constant exchange rates, though euro appreciation reduced results by ~3%.
  • Adjusted EBITDA Margin:: Margin declined to 19.1% (down 110 bps YoY), reflecting seasonal and operational pressures.
  • Organic Growth Recovery:: Organic growth rebounded to +1% (up 250 bps vs. Q2), driven by EMEA’s Southern Europe improvement.
  • US Insurance Channel Decline:: 4% YoY contraction in the first 9 months, contrasting with 2% growth in the Private Pay segment.
  • Fit4Growth Progress:: Program ahead of schedule, targeting 60 bps margin improvement by 2027 and 23% adjusted EBIT margin in 2025.

Regional Performance

The company's regional performance was mixed, with Europe showing solid volume growth in France at 6%, though at a slower pace compared to Q2. The US market grew by around 2% in Q3, with the private pay channel being more positive and the insurance channel around minus 1%. The APAC region saw a negative performance in Australia and New Zealand, while China was flattish. According to Enrico Vita, the Chinese market has been impacted by the country's economic slowdown and consumer confidence, but the fundamentals remain in place due to the aging population.

Margin Analysis

The company's adjusted EBITDA margin was impacted by lower operating leverage and the effect of growth in direct retail. The US profitability was affected by these factors, while the performance in Italy and Spain improved significantly compared to Q2. The company's Fit4Growth program is progressing well and is expected to deliver efficiencies and improve profitability, with a target of a 60-basis-point margin improvement in 2027.

Valuation

Amplifon's current valuation metrics are as follows: P/E Ratio at 26.3, P/B Ratio at 3.27, P/S Ratio at 1.36, EV/EBITDA at 8.85, Dividend Yield at 1.97%, Free Cash Flow Yield at 9.7%, ROIC at 5.43%, and ROE at 11.4%. The Net Debt / EBITDA ratio is 2.89. Analysts estimate next year's revenue growth at 5.6%. The current valuation suggests that the market is pricing in a moderate growth outlook, and the company's ability to deliver on its Fit4Growth program will be crucial in driving future profitability.

Outlook

The company expects the global market demand to continue to gradually normalize, with the US Private Pay segment remaining the main growth driver. The company is confident that it will achieve its target of a 60-basis-point margin improvement in 2027. The guidance for 2026 is not available, but the company is expected to grow in the single or double digits in certain markets. The impact of Chinese manufacturers entering the US and European markets is not yet clear, but the company is committed to its current supplier base.

3. NewsRoom

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AMPLIFON: -42% DIRECT EMISSIONS AND -25% INDIRECT GREENHOUSE GAS EMISSIONS BY 2030

Sep -15

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Is Amplifon a Hidden Opportunity After Its 44% Slide and Recent Market Volatility?

Sep -09

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Amplifon shares plummet by 24% after group slashes full-year guidance

Jul -30

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Amplifon SpA (AMFPF) Q1 2025 Earnings Call Highlights: Resilient Growth Amid Market Challenges

May -07

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Hearing-Aid Maker Transforms Into Unlikely AI Stock Winner

Jan -30

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Hearing-Aid Maker Transforms Into Unlikely AI Stock Winner

Jan -30

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Hearing-Aid Maker Transforms Into Unlikely AI Stock Winner

Jan -30

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Hearing-Aid Maker Transforms Into Unlikely AI Stock Winner

Jan -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.83%)

6. Segments

Hearing Solutions

Expected Growth: 8.9%

Amplifon's 8.9% growth in Hearing Solutions is driven by increasing demand for hearing aids, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on innovative products, such as AI-powered hearing aids, and its strong distribution network contribute to its growth momentum.

Services

Expected Growth: 8.37%

Amplifon's 8.37% growth is driven by increasing demand for hearing solutions, expansion into emerging markets, and strategic acquisitions. The company's focus on innovative products and services, such as artificial intelligence-powered hearing aids, also contributes to growth. Additionally, Amplifon's strong distribution network and partnerships with healthcare providers enable the company to reach a wider customer base.

7. Detailed Products

Hearing Aids

Amplifon offers a wide range of hearing aids from leading manufacturers, including Phonak, Oticon, and Widex. These devices are designed to improve hearing and communication for individuals with hearing loss.

Hearing Tests and Diagnostics

Amplifon provides comprehensive hearing tests and diagnostics to identify hearing loss and determine the best course of treatment.

Audiology Services

Amplifon's team of audiologists provides personalized audiology services, including hearing aid fittings, adjustments, and maintenance.

Hearing Protection

Amplifon offers custom-made hearing protection solutions for individuals working in noisy environments or participating in loud recreational activities.

Tinnitus Management

Amplifon provides tinnitus management solutions, including sound therapy and counseling, to help individuals cope with tinnitus symptoms.

8. Amplifon S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Amplifon S.p.A. is medium due to the presence of alternative products and services in the hearing care industry.

Bargaining Power Of Customers

The bargaining power of customers for Amplifon S.p.A. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Amplifon S.p.A. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Amplifon S.p.A. is low due to the high barriers to entry in the hearing care industry.

Intensity Of Rivalry

The intensity of rivalry for Amplifon S.p.A. is high due to the presence of several competitors in the hearing care industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.88%
Debt Cost 3.96%
Equity Weight 49.12%
Equity Cost 7.68%
WACC 5.79%
Leverage 103.57%

11. Quality Control: Amplifon S.p.A. passed 3 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

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ConvaTec

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Growth: 5.3

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Momentum: 5.0

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Tecan

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Elekta

A-Score: 3.5/10

Value: 4.3

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Quality: 3.1

Yield: 6.9

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A-Score: 3.3/10

Value: 3.9

Growth: 5.0

Quality: 5.9

Yield: 1.9

Momentum: 1.0

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Amplifon

A-Score: 3.2/10

Value: 4.3

Growth: 5.4

Quality: 4.8

Yield: 2.5

Momentum: 0.0

Volatility: 2.3

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

13.88$

Current Price

13.88$

Potential

-0.00%

Expected Cash-Flows