Erredue SpA

Erredue SpA maintains a conservative capital structure with a debt-to-equity ratio of 0.0, indicating no reported leverage on the balance sheet. The company holds total equity of €34.5 million and generated operating cash flow of €5.6 million in the latest period. However, free cash flow turned negative at -€3.1 million due to capital expenditures of €7.3 million, which exceeded operating cash generation. The current market capitalization stands at €60.0 million, with a share count of 6.25 million shares outstanding.

Profitability metrics show a return on equity of 9.54%, derived from net income of €3.3 million against total equity. The company reported revenue of €19.4 million and gross profit of €10.9 million, resulting in an operating income of €3.8 million. The price-to-earnings ratio is 18.23, reflecting the market's valuation of the company's earnings power. Without cohort median data provided in the input, direct comparative analysis against industry peers is omitted, but the positive net income confirms current period profitability.

Segment and geographic revenue breakdowns are not available in the provided data. Consequently, specific insights into revenue concentration by product line or region cannot be articulated. The analysis relies solely on the consolidated financial figures presented in the financial snapshot.

Historical growth trajectory data, including five-year annual and eight-quarter quarterly trends, is absent from the input. Therefore, no assessment of revenue momentum or earnings consistency over time can be made. The analysis is restricted to the single latest normalized period provided.

Risk assessment indicates low dilution risk, with basic and diluted share counts being identical at 6.25 million shares. Liquidity risk is marked as unknown due to the absence of detailed balance-sheet inputs such as current assets and liabilities in the source documents. Key flags note that liquidity risk could not be fully assessed, though no going-concern language was found in source documents.

Recent observations include analyst estimates with a mean price target of €12.75, suggesting potential upside from the current market price of €9.60. The mean recommendation is 2.00, driven by one buy rating and no strong buy or hold ratings. News event observations reference internal system triggers regarding refusal recovery, which do not constitute fundamental business events.

Erredue SpA (RDUE.MI) has been formally classified within the Industrials economic sector, specifically under the Industrial Goods activity. This taxonomic update provides a clearer framework for understanding the company’s operational focus, aligning its market positioning with standard industrial classifications. The risk profile for the company has also seen initial assessments, with dilution risk now categorized as low. This suggests that the potential for existing shareholders to face significant equity dilution is currently minimal, offering a degree of stability regarding capital structure. Conversely, liquidity risk remains classified as unknown. This lack of definitive assessment indicates that there is insufficient data to determine the ease with which the company’s assets can be converted to cash or how readily its shares can be traded without significant price impact. These updates occur against a backdrop of limited market coverage, as the company currently has no analyst coverage, index memberships, or identified top holders. The establishment of these baseline risk and sector metrics serves as a foundational step for future financial analysis and investor evaluation.

Operating and net margins significantly exceed the Industrial Machinery cohort median, indicating best-in-class profitability.

Analysts project 31.4% upside to a mean price target of EUR 12.75, signaling strong market confidence.

Return on equity of 9.5% ranks above the 75th percentile within the industrial machinery peer group.

The company maintains a zero debt-to-equity ratio, providing a stronger capital structure than the cohort median.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder value from equity issuance.

Free cash flow turned negative in FY2026, dropping to minus EUR 3.1 million from positive levels previously.

Revenue declined 10.1% year-over-year in the latest period, reflecting a contraction in top-line sales.

Long-term debt surged to EUR 9.7 million in FY2025, more than tripling from the prior year level.

Capex intensity is in the bottom quartile of peers, potentially indicating underinvestment in future growth drivers.

Revenue CAGR was negative 9.5% over the four-year span ending in FY2024, showing long-term decline.

Revenue €19.4M, +21,8% YoY; Operating income +25,0% YoY.

• ▍Revenue €19.4M, +21,8% YoY
• ▍Operating income +25,0% YoY
• ▍Net income +21,6% YoY
• ▍Free cash flow −600,7% YoY
• ▍Net margin 17.0%

Revenue €15.9M, −3,7% YoY; Operating income −25,7% YoY.

• ▍Revenue €15.9M, −3,7% YoY
• ▍Operating income −25,7% YoY
• ▍Net income −20,4% YoY
• ▍Free cash flow +79,9% YoY
• ▍Net margin 17.0%

Revenue €16.5M, +34,1% YoY; Operating income +84,1% YoY.

• ▍Revenue €16.5M, +34,1% YoY
• ▍Operating income +84,1% YoY
• ▍Net income +105,6% YoY
• ▍Free cash flow −52,2% YoY
• ▍Net margin 20.6%