Esprinet SpA

Esprinet's capital structure is characterized by a debt-to-equity ratio of 1.12, indicating a moderate reliance on debt financing. The company's liquidity position is mixed, with a current ratio of 1.26 and a negative net cash position after subtracting total debt. The price-to-book ratio of 0.38 suggests that the company's market value is significantly below its book value, potentially indicating undervaluation or asset impairment.

Profitability metrics for Esprinet are weak compared to industry standards. The return on equity (ROE) is 0.86%, and the return on assets (ROA) is 0.18%, both of which are below the typical thresholds for healthy performance in the Computer Hardware industry. The company's operating margin is 0.97%, and its net profit margin is 0.35%, further underscoring the challenges in generating consistent profits.

Geographically, Esprinet's revenue is concentrated in a few key markets, with a significant portion derived from Latin America. The company's exposure to this region increases its vulnerability to local economic and political risks. Segment-wise, the company's services and hardware sales are its primary revenue drivers, though the lack of detailed segment reporting limits a deeper analysis.

The company's growth trajectory is modest, with limited guidance on future revenue expansion. Analysts have set a mean price target of 6.78 EUR, suggesting a potential upside from the current market price of 2.83 EUR. However, the company's operating cash flow is negative at -199.01 million EUR, which could constrain its ability to invest in growth initiatives.

Risk factors for Esprinet include liquidity concerns and the potential for dilution, although the latter is currently assessed as low. The company's free cash flow of 6.97 million EUR provides some flexibility, but the negative operating cash flow indicates ongoing operational challenges. The risk assessment highlights the need for improved cash flow management to sustain operations and meet debt obligations.

Recent events and filings indicate that Esprinet is navigating a challenging market environment. The company's recent financial results and analyst estimates suggest a cautious outlook, with a mean recommendation of 1.50, indicating a slight positive bias among analysts. However, the absence of strong buy recommendations and the presence of negative operating cash flow highlight the uncertainties in the company's future performance.

Revenue growth of 3.6% year-over-year in FY2026 suggests modest top-line expansion despite broader economic headwinds.

The company carries a high credit risk flag, indicating substantial concerns regarding its ability to meet financial obligations.

Debt-to-equity ratio of 1.12 places Esprinet in the bottom quartile of its computer hardware cohort peers.

Revenue €1.40B, +2,9% YoY; Operating income −2,1% YoY.

• ▍Revenue €1.40B, +2,9% YoY
• ▍Operating income −2,1% YoY
• ▍Net income −6,1% YoY
• ▍Free cash flow −5,0% YoY
• ▍Net margin 1.0%

Revenue €961.8M, +3,2% YoY; Operating income +12,9% YoY.

• ▍Revenue €961.8M, +3,2% YoY
• ▍Operating income +12,9% YoY
• ▍Net income −17,6% YoY
• ▍Free cash flow −7,0% YoY
• ▍Net margin 0.3%

Revenue €969.1M, +4,9% YoY; Operating income +65,0% YoY.

• ▍Revenue €969.1M, +4,9% YoY
• ▍Operating income +65,0% YoY
• ▍Net income +5 296,3% YoY
• ▍Free cash flow +206,1% YoY
• ▍Net margin 0.3%

Revenue €962.4M, +3,9% YoY; Operating income −47,8% YoY.

• ▍Revenue €962.4M, +3,9% YoY
• ▍Operating income −47,8% YoY
• ▍Net income −84,5% YoY
• ▍Free cash flow −20,6% YoY
• ▍Net margin 0.1%

Revenue €1.36B; Operating income €26.9M.

• ▍Revenue €1.36B
• ▍Operating income €26.9M
• ▍Net margin 1.1%

Revenue €931.8M; Operating income €5.4M.

• ▍Revenue €931.8M
• ▍Operating income €5.4M
• ▍Net margin 0.4%

Revenue €923.7M; Operating income €5.0M.

• ▍Revenue €923.7M
• ▍Operating income €5.0M
• ▍Net margin 0.0%

Revenue €926.2M; Operating income €9.0M.

• ▍Revenue €926.2M
• ▍Operating income €9.0M
• ▍Net margin 0.3%

Revenue €4.29B, +3,6% YoY; Operating income −2,1% YoY.

• ▍Revenue €4.29B, +3,6% YoY
• ▍Operating income −2,1% YoY
• ▍Net income −6,3% YoY
• ▍Free cash flow −44,7% YoY
• ▍Net margin 0.5%

Revenue €4.14B, +3,9% YoY; Operating income +229,9% YoY.

• ▍Revenue €4.14B, +3,9% YoY
• ▍Operating income +229,9% YoY
• ▍Net income +281,2% YoY
• ▍Free cash flow +217,7% YoY
• ▍Net margin 0.5%

Revenue €3.99B, −14,9% YoY; Operating income −80,2% YoY.

• ▍Revenue €3.99B, −14,9% YoY
• ▍Operating income −80,2% YoY
• ▍Net income −125,1% YoY
• ▍Free cash flow −217,4% YoY
• ▍Net margin -0.3%

Revenue €4.68B, −0,1% YoY; Operating income +3,3% YoY.

• ▍Revenue €4.68B, −0,1% YoY
• ▍Operating income +3,3% YoY
• ▍Net income +7,2% YoY
• ▍Free cash flow +1,2% YoY
• ▍Net margin 1.0%