The average target price of LDB.MI is 5.2 and suggests 47% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 5.9. This translates into 69% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 5.0. This suggests 43% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Lindbergh S.p.A. provides maintains, repairs, and logistics solutions in Italy. The company offers spare parts delivery, return management system, personal protective equipment supply, tool testing, waste disposal, customized/on demand; and work clothing and accessories services. Lindbergh S.p.A. was founded in 2006 and is based in Pescarolo ed Uniti, Italy.

Italy

Lindbergh S.p.A.

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

LDB.MI reported revenue of EUR 24mn in the last 12 months, down 10% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 78% from FY23 to EUR 0.04. Market expects EPS to reach EUR 0.21 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 0ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 10.7% in the last 12 months, a decline from 17.5% in FY23. 

Historically, LDB.MI has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 4.3%, a growth from 1.4% in FY23. 

Lindbergh S.p.A. reported a return on equity (RoE) of 17.2% in the last 12 months, up from 5.9% in FY23. The market consensus projects an RoE of 5.8% in FY24, however, this time below its peers. 

Another important profitability metric, return on assets (RoA), amounted to 4.9% in the last 12 months, an increase from 1.7% in FY23. The market analysts predict that RoA will be 1.7% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 9.2%, above the peers. The consensus estimate for FY24 for RoCE is 21.1%, again ahead of the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.0 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

LDB.MI has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is minimal. We note solid return on capital and adequate interest coverage, among the positive credit factors. Among the negative credit factors and we point to weak positions in its industry, poor working capital management.

In highly turbulent market conditions, LDB.MI is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, LDB.MI is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

From both historical and forecast perspectives, the stock is slightly overpriced compared to similar stocks. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, reasonably priced on P/FCF. 

Lindbergh S.p.A.

€ 3.62

3

Lindbergh S.p.A.

€ 3.62

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 3.62

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