Download PDF

1. Company Snapshot

1.a. Company Description

Avio S.p.A., through its subsidiaries, engages in the design, development, and production of propellant propulsion systems for space launchers in Italy and internationally.It is involved in the design, development, and production of solid propellant propulsion systems for tactical missiles; development, integration, and supply of light space launchers; and research and development of low environmental impact propulsion systems, and satellite tracking control motors.The company also offers propulsion boosters, liquid oxygen turbo pumps, and aerodynamic control surfaces.


It offers space launchers under the VEGA and ARIANE names.The company was founded in 1984 and is based in Rome, Italy.

Show Full description

1.b. Last Insights on AVIO

Avio S.p.A.'s recent performance was driven by the European defense sector's surge, positioning the company as a beneficiary of increased military budgets. The company's expertise in aerostructures and engine components for defense applications has become increasingly valuable. Additionally, Avio's recent contract wins and partnerships with major defense contractors have contributed to its growth. Furthermore, the company's focus on innovation and technology has enabled it to stay ahead of the competition.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

3. NewsRoom

Card image cap

Avio and Lockheed Martin Sign Term Sheet to Support the Establishment of a New Plant for Solid Rocket Motors in the USA

Nov -18

Card image cap

Capital Increase Subscribed at 98.83% for a Total Amount of Eur 395m. Unexercised Rights Will Be Offered on November 19 and 20, 2025

Nov -18

Card image cap

Avio and Arianegroup Sign Contract for Ariane 6 Stabilized Production Phase Valued Over 200m€ for Avio

Nov -18

Card image cap

Avio And 2 Other Undiscovered Gems In Europe With Strong Potential

Nov -12

Card image cap

Avio Extends Partnership With U.S. Government Armed Forces

Aug -28

Card image cap

Gabelli Funds to Host 31st Annual Aerospace & Defense Symposium at The Harvard Club, New York City, Thursday, September 4, 2025

Aug -27

Card image cap

Gabelli Funds to Host 31st Annual Aerospace & Defense Symposium at The Harvard Club, New York City, Thursday, September 4, 2025

Aug -25

Card image cap

Gabelli Funds to Host 31st Annual Aerospace & Defense Symposium at The Harvard Club, New York City Thursday, September 4, 2025

Aug -20

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.44%)

6. Segments

Vega

Expected Growth: 10%

Vega's 10% growth driven by increasing demand for sustainable aviation fuels, expansion in the commercial aerospace market, and strategic partnerships with major aircraft manufacturers, coupled with investments in research and development to improve engine efficiency and reduce emissions.

Ariane

Expected Growth: 11%

Ariane from Avio S.p.A. growth driven by increasing demand for satellite launches, expansion into new markets, and investments in R&D for cost-effective and efficient launch systems. Strong partnerships with European space agencies and private companies, such as Arianespace, also contribute to the growth.

Defence

Expected Growth: 9%

Avio S.p.A.'s 9% growth in Defence is driven by increasing global defence spending, rising demand for advanced military technologies, and strategic partnerships with governments and OEMs. Additionally, Avio's focus on innovation, R&D investments, and expansion into new markets have contributed to its growth momentum.

Technology Development Projects

Expected Growth: 13%

Avio S.p.A.'s 13% growth in Technology Development Projects is driven by increasing demand for sustainable space exploration, government investments in space agencies, and advancements in electric propulsion systems. Additionally, the company's focus on digitalization, innovation, and strategic partnerships have contributed to its growth.

Satellite and Other Activities

Expected Growth: 8%

Avio S.p.A.'s Satellite and Other Activities segment growth is driven by increasing demand for Earth observation and satellite-based services, government investments in space exploration, and expansion into new markets such as Asia and Latin America. Additionally, advancements in satellite technology and the growing need for secure communication networks also contribute to the segment's growth.

7. Detailed Products

Aerospace Propulsion Systems

Avio S.p.A. designs and manufactures propulsion systems for launch vehicles, including liquid-fueled engines, solid rocket boosters, and attitude control systems.

Electrical Power Systems

Avio S.p.A. provides electrical power systems for spacecraft, including power generation, distribution, and storage solutions.

Thermal Protection Systems

Avio S.p.A. develops thermal protection systems for re-entry vehicles, including heat shields and thermal blankets.

Aerothermodynamic Systems

Avio S.p.A. designs and manufactures aerothermodynamic systems for re-entry vehicles, including nose tips and leading edges.

Structural Components

Avio S.p.A. manufactures structural components for spacecraft, including frames, panels, and antennae.

Ground Support Equipment

Avio S.p.A. provides ground support equipment for spacecraft, including launch pads, umbilical towers, and servicing towers.

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

Forces Ranking

Threat Of Substitutes

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

Bargaining Power Of Customers

The bargaining power of customers for Avio S.p.A. is low due to the company's strong brand reputation and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Avio S.p.A. is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for Avio S.p.A. is low due to the high barriers to entry in the aerospace industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Avio S.p.A. is high due to the presence of several established players in the aerospace industry, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.40%
Debt Cost 3.95%
Equity Weight 95.60%
Equity Cost 7.48%
WACC 7.32%
Leverage 4.60%

11. Quality Control: Avio 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

Stock-Card
Cohort

A-Score: 5.2/10

Value: 3.1

Growth: 8.0

Quality: 5.8

Yield: 3.1

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

Stock-Card
Chemring

A-Score: 5.1/10

Value: 1.7

Growth: 5.2

Quality: 6.4

Yield: 2.5

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

Stock-Card
TAT Technologies

A-Score: 4.2/10

Value: 3.9

Growth: 5.1

Quality: 5.6

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

Stock-Card
Avio

A-Score: 4.0/10

Value: 1.4

Growth: 6.2

Quality: 4.5

Yield: 0.6

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Stock-Card
OHB

A-Score: 3.8/10

Value: 1.8

Growth: 4.2

Quality: 4.4

Yield: 1.9

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

Stock-Card
CTT Systems

A-Score: 3.5/10

Value: 0.2

Growth: 5.9

Quality: 8.5

Yield: 3.1

Momentum: 2.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.7$

Current Price

25.7$

Potential

-0.00%

Expected Cash-Flows