The Italian Sea Group S.p.A. (TISG.MI) | Investment Case

1. Company Snapshot

1.a. Company Description

The Italian Sea Group S.p.A. operates in the luxury yachting industry.It is involved in the design, production and marketing of yachts and super yachts, motor, and sailing, made of fiberglass, aluminum and steel that ranges between 17 and over 100 meters under the Admiral, Tecnomar, Perini Navi, and Picchiotti brands.The company also offers refit services with a focus on motor and sailing yachts under the NCA Refit brand.

The company was founded in 1942 and is based in Marina di Carrara, Italy.The Italian Sea Group S.p.A. is a subsidiary of GC Holding S.P.A.

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1.b. Last Insights on TISG

The Italian Sea Group S.p.A.'s recent performance was hindered by a decline in demand for luxury yachts, exacerbated by the global economic slowdown. The company's exposure to the high-end market makes it vulnerable to fluctuations in consumer spending. Furthermore, the increasing competition from established players in the industry has intensified, making it challenging for The Italian Sea Group to maintain its market share. Additionally, the company's reliance on a limited number of high-value projects increases its risk profile.

1.c. Company Highlights

Last Price	4.3
Change Percentage	2.14%
Open	4.21
Previous Close	4.21
Market Cap ( Millions)	228
Volume	51286
Year High	8.36
Year Low	3.58
M A 50	4.54
M A 200	5.45

FCF Yield	-16.79%
Dividend Yield	5.70%
ROE	8.76%
Debt / Equity	90.83%
Net Debt / EBIDTA	139.55%
Price To Book	1.56
Price Earnings Ratio	17.79
Price To FCF	-5.96
Price To sales	0.68
EV / EBITDA	5.88

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 (6.23%)

6. Segments

Yachts (Shipbuilding)

Expected Growth: 6%

The Italian Sea Group S.p.A.'s 6% growth in yacht shipbuilding is driven by increasing demand from high-net-worth individuals, growing popularity of luxury experiences, and rising disposable income. Additionally, the company's focus on innovative designs, sustainable materials, and exceptional craftsmanship has enabled it to capitalize on the trend towards bespoke and eco-friendly yachts.

Refit

Expected Growth: 8%

The Italian Sea Group S.p.A.'s 8% growth is driven by increasing demand for luxury yachts, strategic partnerships, and expansion into emerging markets. Additionally, the company's focus on innovative designs, sustainable practices, and exceptional customer service has contributed to its growth. Furthermore, the company's strong brand reputation and established relationships with high-net-worth individuals have also fueled its growth.

7. Detailed Products

Admiral Yachts

Luxury yachts designed for comfort and performance, offering bespoke solutions for discerning clients.

Tecnomar Yachts

High-performance yachts with sleek designs, advanced technology, and exceptional craftsmanship.

Nuova Tecnomar Yachts

Custom-built yachts combining innovative design, advanced materials, and exceptional performance.

Refit and Repair Services

Comprehensive refit and repair services for yachts, ensuring optimal performance and condition.

After-Sales Services

Dedicated support and maintenance services for yacht owners, ensuring optimal performance and safety.

8. The Italian Sea Group S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The Italian Sea Group S.p.A. operates in a niche market, and the threat of substitutes is moderate. While there are some alternatives, they are not easily substitutable, and the company's high-end luxury yachts are unique.

Bargaining Power Of Customers

The bargaining power of customers is low due to the high-end nature of the company's products. Customers are willing to pay a premium for the luxury and exclusivity offered by The Italian Sea Group S.p.A.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as the company relies on a few key suppliers for critical components. However, the company's strong relationships with suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the luxury yacht market. The company's established brand, expertise, and high-end products create a significant moat.

Intensity Of Rivalry

The intensity of rivalry is high in the luxury yacht market, with several established players competing for market share. The Italian Sea Group S.p.A. must continue to innovate and differentiate its products to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	33.84%
Debt Cost	9.13%
Equity Weight	66.16%
Equity Cost	9.13%
WACC	9.13%
Leverage	51.15%

11. Quality Control: The Italian Sea Group S.p.A. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Technogym

A-Score: 6.6/10

Value: 2.3

Growth: 6.6

Quality: 7.5

Yield: 6.9

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

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

1-Year Total Return ->

Sats

A-Score: 5.2/10

Value: 5.5

Growth: 5.9

Quality: 5.6

Yield: 1.2

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

The Italian Sea Group

A-Score: 5.1/10

Value: 7.4

Growth: 6.2

Quality: 5.8

Yield: 6.2

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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

1-Year Total Return ->

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

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

22.36%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.13%

The Italian Sea Group S.p.A. - IT0005439085

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TISG

1.c. Company Highlights

Better Quality

Higher Growth

Average Yield

Strong Momentum

Weak Momentum

Stable Momentum

Revenues Beats

Average Quality

Fairly Valued

Cheaper

Revenues Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.23%)

6. Segments

Yachts (Shipbuilding)

Expected Growth: 6%

Refit

Expected Growth: 8%

7. Detailed Products

Admiral Yachts

Tecnomar Yachts

Nuova Tecnomar Yachts

Refit and Repair Services

After-Sales Services

8. The Italian Sea Group S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: The Italian Sea Group 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.3$

Current Price

4.3$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA