Yolo Group SpA

Yolo Group SpA has a liquidity position that is characterized by a current ratio of 1.73, indicating that it has 1.73 euros in current assets for every euro of current liabilities. However, the company's free cash flow is negative at -2.85 million euros, and capital expenditures are -3.27 million euros, suggesting that the company is investing in its operations but is not generating sufficient cash to cover these expenses. The company's cash and equivalents amount to 2.62 million euros, which is less than its long-term debt of 7.87 million euros, indicating a net cash negative position. In terms of profitability, Yolo Group SpA is currently unprofitable, with a net income of -3.63 million euros and an operating income of -4.72 million euros. The company's return on equity is -28.69%, and its return on assets is -12.75%, both of which are significantly below the industry median for multiline insurance and brokers. This suggests that the company is underperforming in terms of generating returns for its shareholders and utilizing its assets efficiently. The company's revenue is derived from two segments: Private Customers and Insurtech Platform. The Private Customer segment provides insurance policies in four groups: Goods, Health, People and Pets, and Travels. The Insurtech Platform provides software solutions to banks, insurances, fintechs, and big companies. However, the company's revenue concentration is not disclosed, and there is no information on the geographic distribution of its revenue. Yolo Group SpA's growth trajectory is uncertain, as the company is currently unprofitable and has a negative operating income. The company's revenue for the latest period is 13.54 million euros, but there is no information on the growth rate or the expected growth for the next fiscal year. The company's outlook for the current and next fiscal years is not provided, making it difficult to assess its future performance. The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag is that the company's net cash is negative after subtracting total debt, which could impact its ability to meet short-term obligations. The company's dilution potential is low, as there is no significant change in the number of shares outstanding between basic and diluted shares. Recent events related to Yolo Group SpA include analyst estimates that suggest a mean price target of 1.75 euros, with a mean recommendation of 2.00 (1=strong buy, 5=strong sell). There are no strong-buy recommendations, one buy recommendation, and no hold recommendations. The uniformity of the price targets and the lack of strong-buy recommendations indicate a cautious outlook from analysts.