In This Article:
Italmobiliare Sp.A. (BIT:ITM), a €910.27M small-cap, is an industrials company operating in a sector, which faces strong tailwind from government stimulus driving higher inflation, typically positive for industrial manufacturers. Longer term, disruptive forces, such as energy efficiency, are shaping company strategy. Capital goods analysts are forecasting for the entire industry, a strong double-digit growth of 12.54% in the upcoming year , and an optimistic near-term growth of 22.69% over the next couple of years. However, this rate came in below the growth rate of the IT stock market as a whole. Today, I’ll take you through the sector growth expectations, as well as evaluate whether Italmobiliare is lagging or leading in the industry. See our latest analysis for Italmobiliare
What’s the catalyst for Italmobiliare’s sector growth?
In the industrials sector, consumer demand is driven predominantly by replacement cycles than by consumer spending on new items, for example, if new component sales slowdown, sales of aftermarket parts may pick up. Over the past year, the industry saw growth of 8.52%, though still underperforming the wider IT stock market. Italmobiliare lags the pack with its which indicates the company will be growing at a slower pace than its industrial peers.
Is Italmobiliare and the sector relatively cheap?
The industrial sector’s PE is currently hovering around 14.22x, lower than the rest of the IT stock market PE of 19.88x. This illustrates a somewhat under-priced sector compared to the rest of the market. Though, the industry returned a similar 12.32% on equities compared to the market’s 11.12%. On the stock-level, Italmobiliare is trading at a lower PE ratio of 8.26x, making it cheaper than the average industrial stock. In terms of returns, Italmobiliare generated 8.39% in the past year, which is 3.93% below the industrial sector.
Next Steps:
Italmobiliare is an industrial industry laggard in terms of its future growth outlook. This is possibly reflected in the PE ratio, with the stock trading below its peers. If the stock has been on your watchlist for a while, now may be the time to dig deeper. Although the market is expecting lower growth for the company relative to its peers, Italmobiliare is also trading at a discount, meaning that there could be some value from a potential mispricing. However, before you make a decision on the stock, I suggest you look at Italmobiliare’s fundamentals in order to build a holistic investment thesis.
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Historical Track Record: What has ITM’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Italmobiliare? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.