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1. Company Snapshot

1.a. Company Description

Technogym S.p.A., a wellness company, designs, manufactures, and sells fitness equipment worldwide.The company offers a range of wellness, physical exercise, and rehabilitation solutions.Its products include treadmills, exercise bikes, elliptical cross trainers, rowers, stair climbers, upper body trainers, selectorized equipment, plate loaded equipment, multigyms and cable stations, benches and racks, free weights, functional training equipment, and stretching equipment; and exercise tools, such as exercise mat, floor mat, set loop band resistance, elastic bands, power band resistance, jump rope, foam roller, wellness ball, balance pad, balance dome, slam ball, and medicine ball, as well as personal line products.


The company markets its products to fitness and wellness clubs; hospitality and residential; health, corporate, and performance; and home and consumer segments through field and inside sales, retail, and wholesale channels.Technogym S.p.A. was founded in 1983 and is headquartered in Cesena, Italy.

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1.b. Last Insights on TGYM

Technogym S.p.A.'s recent challenges are driven by intense competition in the fitness equipment market and rising production costs. The company's partnership with the Paris Olympics, while a notable achievement, may not be enough to offset these headwinds. Additionally, the company's reliance on its founder and CEO, Nerio Alessandri, may raise concerns about succession planning and leadership transition. Furthermore, Technogym's recent earnings release showed a decline in operating margins, which could be a concern for investors.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Purpose Brands Announces Grand Opening of First Anytime Fitness Club in Dubai, Coinciding with Dubai Fitness Challenge Wellness Campaign

Oct -24

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Is Technogym (BIT:TGYM) Overvalued After Its Recent Strong Run?

Sep -09

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Accor’s TRIBE Hotels debuts in Phuket, Thailand

Jul -21

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Technogym establishes new US headquarters in Jersey City

Mar -11

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How Nerio Alessandri started Technogym in his parent’s garage and turned it into a billion-dollar company supporting the Paris Olympics

Aug -08

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The Best Gyms From Los Angeles to Paris to Beijing

Jun -15

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.60%)

6. Segments

Fitness Equipment, Spare Parts, Hardware and Software

Expected Growth: 9%

Technogym's 9% growth driven by increasing health awareness, rising demand for home fitness, and digitalization of gyms. Strong brand reputation, innovative products, and strategic partnerships also contribute to growth. Spare parts and hardware sales benefit from equipment upgrades and maintenance, while software sales are boosted by digital fitness platforms and subscription-based services.

Transport and Installation, After-sale and Rental Assistance

Expected Growth: 7%

Technogym's 7% growth in Transport and Installation, After-sale and Rental Assistance is driven by increasing demand for premium fitness equipment, strategic partnerships with fitness centers and gyms, expansion into new markets, and a growing focus on digitalization and connected fitness solutions.

Other

Expected Growth: 6%

Technogym's 6% growth in the 'Other' segment is driven by increasing demand for digital fitness solutions, expansion into new markets, and strategic partnerships. The company's focus on innovation, particularly in AI-powered equipment and personalized wellness experiences, has also contributed to growth. Additionally, the rise of the wellness industry and growing consumer interest in health and fitness have created a favorable market environment.

7. Detailed Products

Cardio Equipment

Technogym's cardio equipment includes treadmills, ellipticals, stationary bikes, and rowing machines designed for cardiovascular exercise and fitness training.

Strength Equipment

Technogym's strength equipment includes free weights, plate-loaded machines, and functional training equipment for building strength and muscle tone.

Functional Training Equipment

Technogym's functional training equipment includes Omnia, Kinesis, and Pure Strength for functional training and rehabilitation.

Group Fitness Equipment

Technogym's group fitness equipment includes bikes, rowers, and other equipment designed for group fitness classes.

Digital Solutions

Technogym's digital solutions include Mywellness, a cloud-based platform for fitness tracking, and Technogym Live, a virtual fitness platform.

After-Sales Services

Technogym's after-sales services include maintenance, repair, and technical support for equipment and software.

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

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Technogym S.p.A. is medium due to the presence of alternative fitness equipment and services. However, Technogym's high-quality products and strong brand reputation help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to Technogym's strong brand reputation and the lack of alternative suppliers for high-quality fitness equipment.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers for raw materials and components. However, Technogym's strong relationships with suppliers help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the fitness equipment industry, including the need for significant investment in research and development and manufacturing capabilities.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the fitness equipment industry, including Johnson Health Tech and Nautilus Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.40%
Debt Cost 11.39%
Equity Weight 81.60%
Equity Cost 11.39%
WACC 11.39%
Leverage 22.55%

11. Quality Control: Technogym S.p.A. passed 7 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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Technogym

A-Score: 6.6/10

Value: 2.3

Growth: 6.6

Quality: 7.5

Yield: 6.9

Momentum: 8.5

Volatility: 7.7

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Compagnie des Alpes

A-Score: 6.2/10

Value: 6.2

Growth: 5.8

Quality: 3.2

Yield: 6.9

Momentum: 8.5

Volatility: 6.7

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Sats

A-Score: 5.2/10

Value: 5.5

Growth: 5.9

Quality: 5.6

Yield: 1.2

Momentum: 9.5

Volatility: 3.7

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Hollywood Bowl

A-Score: 5.1/10

Value: 4.7

Growth: 8.0

Quality: 5.7

Yield: 5.0

Momentum: 2.0

Volatility: 5.0

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Benefit Systems

A-Score: 4.9/10

Value: 2.9

Growth: 9.3

Quality: 5.7

Yield: 0.0

Momentum: 7.5

Volatility: 4.0

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Harvia

A-Score: 3.8/10

Value: 1.8

Growth: 5.1

Quality: 6.6

Yield: 3.8

Momentum: 2.0

Volatility: 3.3

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

16.26$

Current Price

16.26$

Potential

-0.00%

Expected Cash-Flows