PIRC:MILPirelli & C. S.p.A. Analysis
Data as of 2026-03-15 - not real-time
€5.75
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Pirelli shares are trading well below key moving averages (20‑day, 50‑day and 200‑day), with an RSI in the mid‑30s and a bearish MACD histogram, yet volume is on the rise and the model‑based upside exceeds 20%. Fundamentally, the stock trades at a low‑teens PE, a price‑to‑book near parity and offers a dividend yield above 4% on a 50% payout, while debt levels are modest (debt‑to‑equity ~17%).
Recent earnings commentary shows a 4.2% organic revenue lift in Q4 FY2025, an EBIT margin of 16% and a 5.9% rise in net income, indicating that the margin expansion highlighted in the data may be materializing. Combined with a solid cash position and a market‑cap of roughly €6.2 bn, the equity appears undervalued relative to its earnings and dividend profile, though short‑term technical pressure remains.
Recent earnings commentary shows a 4.2% organic revenue lift in Q4 FY2025, an EBIT margin of 16% and a 5.9% rise in net income, indicating that the margin expansion highlighted in the data may be materializing. Combined with a solid cash position and a market‑cap of roughly €6.2 bn, the equity appears undervalued relative to its earnings and dividend profile, though short‑term technical pressure remains.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Technical oversold signals with rising volume
- Attractive dividend yield above 4% and low payout ratio
- Valuation upside potential of ~22% based on target price
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Improving margins and revenue momentum from recent earnings
- Low leverage and strong balance sheet supporting dividend
- Blend of value and modest growth prospects in premium tire segment
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Strategic positioning in high‑performance and EV‑focused tire lines
- Sustainable dividend policy with cash generation potential
- Global brand diversification mitigating single‑region exposure
Key Metrics & Analysis
Financial Health
Revenue Growth-3.20%
Profit Margin7.83%
P/E Ratio11.5
ROE9.02%
Debt/Equity17.07
P/B Ratio1.0
Technical Analysis
TrendNeutral
RSI36.7
Support€5.63
Resistance€6.60
MA 20€6.11
MA 50€6.23
MA 200€6.02
MACDBearish
VolumeIncreasing
Fear & Greed Index72.88
Valuation
Target Price€7.04
Upside/Downside22.53%
GradeUndervalued
TypeBlend
Dividend Yield4.35%
Risk Assessment
Beta0.20
Volatility27.65%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.