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1. Company Snapshot

1.a. Company Description

EL.En. S.p.A. engages in the research and development, manufacture, distribution, and sale of laser systems in Europe and internationally.The company offers medical laser equipment for use in the fields of physiotherapy, orthopedics, traumatology, rheumatology, dermatology, sports and rehabilitative medicines, surgery, aesthetics, and art; and laser sources and systems for cutting, welding, marking, and engraving on countless materials.It also provides laser sources that include liquid, solid, semiconductor, and gas; and after-sales services, such as supplying of spare parts, as well as consulting and technical assistance services.


The company was founded in 1981 and is headquartered in Calenzano, Italy.

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1.b. Last Insights on ELN

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1.c. Company Highlights

2. El.En.'s Q3 2025 Earnings: Strong Medical Sector Performance

El.En.'s third-quarter 2025 financial results showed a strong performance, particularly in the medical sector, with revenues up 3.9% to EUR 422 million compared to the previous year. The gross margin was EUR 188.3 million, up 6.5%. EBITDA was EUR 65.6 million, in line with the previous year, and the EBIT margin on revenue was 13%, down from 14%. The company's net financial position was positive for EUR 137 million, an increase of EUR 47.4 million in the third quarter, thanks to strong cash generation. The actual EPS was not disclosed.

Publication Date: Nov -23

📋 Highlights
  • Medical Sector Growth:: Revenues grew 4.6% YoY in 9M25, with EBIT margin rising to 16.9% (Q3: 19%), driven by anti-aging treatments and higher-margin products.
  • Net Financial Position Strength:: Positive EUR 137M cash position, up EUR 47.4M in Q3, including EUR 26.4M from the Penta Laser Zhejiang stake sale.
  • Industrial Division Weakness:: Revenues rose 1.9% YoY in 9M25, hindered by cutting business slowdown, though Lasit’s marking activity performed well.
  • Consolidated Profitability:: EBITDA stable at EUR 65.6M (flat YoY), while EBIT margin declined to 13% from 14% due to lower industrial margins.
  • Strategic Priorities:: Targeting EUR 23M EBIT in 2025, pursuing medical sector M&A, and retaining Cutlite to avoid risks to US operations.

Segment Performance

The medical sector's EBIT margin improved to 16.9% in the 9 months and around 19% in the third quarter, driven by growth in system sales, especially in anti-aging treatments, and a significant increase in revenues from higher-margin products. The industrial business had a softer performance, with revenues up only 1.9% in the 9 months, due to a slowdown in the cutting business. Ot-Las saw a slowdown in Laser sources segment, but Industrial Service returned to show an increase of 6%.

Guidance and Outlook

The company targets to beat 2024 revenues and EBIT in 2025, with a plan to reach EUR 23 million in EBIT. The guidance takes into account a weak performance in the industrial division, especially in the cutting division. El.En. is exploring strategic partnerships for Cutlite and has a cash position beyond ordinary operational needs, considering small M&A opportunities to enhance growth, particularly in the medical sector. Analysts estimate next year's revenue growth at 6.4%.

Valuation

With a P/E Ratio of 13.9 and an EV/EBITDA of 8.03, the stock appears reasonably valued. The ROE is 17.67%, indicating a good return on equity. The Net Debt / EBITDA is -0.72, reflecting the company's net cash position. The Free Cash Flow Yield is 6.63%, suggesting a decent return for investors. These metrics indicate that the market has priced in a moderate growth outlook for El.En.

3. NewsRoom

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DEKA Plays Its Poker Quad With Four New Laser Platforms at IMCAS Paris, the World Dermatology and Plastic and Aesthetic Surgery Congress

Jan -31

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.13%)

6. Segments

Medical

Expected Growth: 7%

EL.En. S.p.A.'s Medical segment growth of 7% is driven by increasing demand for medical devices, expansion into emerging markets, and strategic partnerships. Additionally, advancements in medical technology, an aging population, and government initiatives to improve healthcare infrastructure also contribute to this growth.

Industrial

Expected Growth: 5%

EL.En. S.p.A.'s Industrial segment growth is driven by increasing demand for laser cutting systems, expansion into new markets, and strategic partnerships. The company's focus on innovation, quality, and customer service has enabled it to capitalize on the growing trend of industrial automation, resulting in a 5% growth rate.

7. Detailed Products

Laser Systems

EL.En. S.p.A. offers a range of laser systems for various industrial, medical, and aesthetic applications, including laser cutting, welding, and surface treatment.

Aesthetic Lasers

EL.En. S.p.A. provides a range of aesthetic lasers for hair removal, skin rejuvenation, and tattoo removal, designed for use in medical spas and clinics.

Medical Lasers

EL.En. S.p.A. offers medical lasers for surgical and therapeutic applications, including ophthalmology, dermatology, and orthopedics.

Industrial Lasers

EL.En. S.p.A. provides industrial lasers for material processing, including cutting, welding, and surface treatment, used in industries such as automotive, aerospace, and manufacturing.

Laser Marking Systems

EL.En. S.p.A. offers laser marking systems for permanent marking and engraving of materials, used in industries such as aerospace, automotive, and medical devices.

8. EL.En. S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

EL.En. S.p.A. operates in the renewable energy sector, which has a relatively low threat of substitutes due to the unique nature of its products and services.

Bargaining Power Of Customers

EL.En. S.p.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

EL.En. S.p.A. relies on a network of suppliers for components and materials. While the company has some bargaining power due to its size and reputation, suppliers may still have some negotiating power due to the specialized nature of their products.

Threat Of New Entrants

The renewable energy sector has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like EL.En. S.p.A.

Intensity Of Rivalry

The renewable energy sector is highly competitive, with many established players competing for market share. EL.En. S.p.A. must continually innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.40%
Debt Cost 3.95%
Equity Weight 83.60%
Equity Cost 12.28%
WACC 10.91%
Leverage 19.62%

11. Quality Control: EL.En. S.p.A. passed 5 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
Synektik

A-Score: 5.9/10

Value: 1.8

Growth: 9.8

Quality: 7.5

Yield: 5.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Drägerwerk

A-Score: 5.7/10

Value: 7.7

Growth: 3.3

Quality: 4.8

Yield: 3.8

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
EL.En

A-Score: 5.7/10

Value: 5.6

Growth: 6.1

Quality: 7.6

Yield: 6.2

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
ChemoMetec

A-Score: 4.8/10

Value: 0.0

Growth: 7.8

Quality: 9.4

Yield: 0.6

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Eckert & Ziegler

A-Score: 4.7/10

Value: 2.0

Growth: 7.1

Quality: 7.5

Yield: 1.2

Momentum: 7.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Guerbet

A-Score: 2.7/10

Value: 7.8

Growth: 2.6

Quality: 2.0

Yield: 2.5

Momentum: 0.0

Volatility: 1.3

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

13.05$

Current Price

13.05$

Potential

-0.00%

Expected Cash-Flows