olivLaw · European equity research
Pirelli & C. S.p.A. PIRC.MI
Italy · Euronext Milan · ISIN IT0005278236 · Vertical: Listed companies from Italy
Pirelli is a global tyre maker focused on the Prestige and Premium segments, and in 2025 it reported revenue of about 6.78 billion euros. For the coming period the company expects solid organic growth and a slightly better adjusted EBIT margin, under macroeconomic and geopolitical uncertainty.
At the close of 05 Nov 2026, Pirelli & C. S.p.A. (PIRC.MI) stock was 6.70 EUR (−0.89% on the day), with market capitalisation 6.7 m EUR, P/E 0.0 on diluted EPS of 496.00 EUR over the last 12 months, dividend yield 3,855.23%, beta 0.73, 52-week range 5.55–6.98 EUR.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 54.7
- neutral
- Bollinger (20, 2)
- 6.53 – 6.76
- in the upper half of the band · %B 0.74 · band width 3.5%
- SMA 50 / 200
- 6.57 / 6.35
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.03 / 0.02
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −0.4% | −0.6% | +0.3 pp | — |
| 3 months | +1.9% | −4.2% | +6.1 pp | — |
| 6 months | +8.7% | +4.3% | +4.3 pp | — |
| Year to date | +14.4% | +7.5% | +6.9 pp | — |
| 1 year | +7.8% | +9.9% | −2.1 pp | −6.1% |
| 3 years | +52.0% | +49.8% | +2.2 pp | +7.7% |
| 5 years | +19.6% | +42.8% | −23.2 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 2-quarter history (min 0.0, median 0.0, max 0.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | unavailable | 6.8 bn | 6.8 bn |
| Revenue YoY | unavailable | unavailable | +0.0% |
| Net income | 495.9 m | 468.0 m | 497.5 m |
| Net income YoY | unavailable | −5.6% | +6.3% |
| Diluted EPS | unavailable | 468.00 | 496.00 |
| Diluted EPS YoY | unavailable | unavailable | +6.0% |
| net % | unavailable | 6.9% | 7.3% |
| Free cash flow | unavailable | 916.5 m | 953.5 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 1.5 bn EUR
- Financial debt
- 3.0 bn EUR
- Net debt
- 1.4 bn EUR
- Equity
- 6.5 bn EUR
- Total assets
- 13.4 bn EUR
- Debt / equity
- 0.46x
- Current ratio
- 1.45x
- ROE
- 8.0%
- ROA
- 3.7%
- FCF margin
- 14.1%
Financial statements (source on every figure)
Revenue and net income (EUR)
Margins
Income statement · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | — | 6.8 bn | 6.8 bn | esef· 29 Apr 2026verified |
| Operating income | — | 903.0 m | 891.2 m | esef· 29 Apr 2026verified |
| Interest expense | — | 422.9 m | 290.6 m | esef· 29 Apr 2026verified |
| Pre-tax income | — | 647.8 m | 760.2 m | esef· 29 Apr 2026verified |
| Income tax | — | 146.7 m | 229.5 m | esef· 29 Apr 2026verified |
| Net income | 495.9 m | 468.0 m | 497.5 m | esef· 29 Apr 2026verified |
| Diluted EPS | — | 468.00 | 496.00 | esef· 29 Apr 2026verified |
| Dividend per share | — | 198.00 | 258.30 | esef· 29 Apr 2026derived |
Balance sheet · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 1.3 bn | 1.5 bn | 1.5 bn | esef· 29 Apr 2026verified |
| Inventories | 1.4 bn | 1.5 bn | 1.5 bn | esef· 29 Apr 2026verified |
| Current assets | 4.0 bn | 4.3 bn | 4.1 bn | esef· 29 Apr 2026verified |
| Property, plant & equipment, net | 3.4 bn | 3.4 bn | 3.4 bn | esef· 29 Apr 2026verified |
| Total assets | 13.5 bn | 13.7 bn | 13.4 bn | esef· 29 Apr 2026verified |
| Short-term debt | 789.5 m | 760.9 m | 210.6 m | esef· 29 Apr 2026verified |
| Long-term debt | 3.2 bn | 3.1 bn | 2.7 bn | esef· 29 Apr 2026verified |
| Current liabilities | 3.4 bn | 3.3 bn | 2.9 bn | esef· 29 Apr 2026verified |
| Equity | 5.6 bn | 5.9 bn | 6.5 bn | esef· 29 Apr 2026verified |
| Shares outstanding at year end | — | 1,000.0 k | 1.0 m | esef· 29 Apr 2026derived |
Cash flow · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | — | 1.3 bn | 1.3 bn | esef· 29 Apr 2026verified |
| Capex | — | 376.1 m | 352.3 m | esef· 29 Apr 2026verified |
| Free cash flow | — | 916.5 m ≈ | 953.5 m ≈ | esef· 29 Apr 2026derived |
| Investing cash flow | — | -421.3 m | -360.3 m | esef· 29 Apr 2026verified |
| Financing cash flow | — | -610.7 m | -888.1 m | esef· 29 Apr 2026verified |
| Dividends paid | — | 204.4 m | 259.1 m | esef· 29 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 77 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 6.7 m EUR
Key indicators
Coverage and freshness
Score by group
- Valuation100
- Balance sheet36
- Returns100
- Quality65
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3,119.95 – 54,035,858.47 EUR.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (EUR per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)36,634.98 – 54,035,858.47 (Mid 73,217.95)WACC 3.5% · starting FCFF 1.2 bn EUR · terminal value share of EV 93%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E3,119.95 – 11,334.04 (Mid 6,574.85)20 companies used · median multiple 13.3x · quartiles 6.3x – 22.9xAC5.MI, ACE.MI, ADB.MI, AEF.MI, AMP.MI, ARN.MI, ASC.MI, BC.MI, BEC.MI, CAI.MI, CIR.MI, CLF.MI, CMB.MI, COM.MI, CRL.MI, CY4.MI, DEX.MI, DIA.MI, DLG.MI, DNR.MI
- Dividend discount (DDM)3,512.89 – 4,790.30 (Mid 4,053.33)
Assumptions (illustrative, editorial)
- Risk-free rate
- 3.0%
- Equity risk premium
- 5.5%
- Beta (default)
- 1.00
- Cost of equity
- 8.5%
- Terminal growth
- 2.0%
Factor scorecard
Neutral profile · Score 77/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 7.7% | 50 (vs peers) | 17% |
| Net margin · Quality | 7.3% | 56 (vs peers) | 10% |
| FCF conversion · Quality | 191.7% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 3.1x | 24 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 1.4x | 54 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 0.0x | 100 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 14,187.9% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 3,855.2% | 100 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 27.2% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet36/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality65/100 · 3/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation100/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
PIRELLI & C. S.P.A. (PIRC.MI). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 6.8 bn EUR in 2025; YoY growth 0.0%; net margin 7.3%; ROE 8.3%.
The estimated value range is 3,512.89–11,334.04 EUR per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 6,574.85 EUR, the price of 6.70 EUR leaves a potential of 98,032.1% (value / price − 1) and a margin of safety of 99.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 77/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 191.7%
- P/E (TTM): 0.0x
- FCF yield: 14,187.9%
- Shareholder yield (distributions): 3,855.2%
- Payout ratio (FCF): 27.2%
- The price is below the estimated value range
What contradicts it
- Interest coverage: 3.1x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from Italy · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| DLG.MIDe' Longhi S.p.a. | 6.8 bn | 21.5 | 15.4% | 8.4% | +8.7% | +24% / +60% |
| ACE.MIAcea S.p.a. | 4.6 bn | 9.6 | 18.2% | 16.6% | +0.2% | −4% / +73% |
| DIA.MIDiasorin S.p.a. | 4.3 bn | 28.3 | 9.2% | 13.0% | +0.8% | +31% / −7% |
| CRL.MICarel Industries S.p.a. | 2.9 bn | 39.5 | 16.1% | 11.7% | +8.7% | +3% / +10% |
| AMP.MIAmplifon S.p.a. | 2.7 bn | 29.9 | 8.5% | 3.8% | −0.6% | −9% / −58% |
| CMB.MICembre S.p.a. | 1.3 bn | 27.0 | 20.6% | 18.9% | +6.7% | +11% / +108% |
| COM.MIComer Industries S.p.a. | 1.3 bn | 18.6 | 12.8% | 7.1% | −23.0% | +8% / +64% |
| DNR.MIIndustrie De Nora S.p.a. | 1.1 bn | 13.4 | 8.6% | 9.4% | +1.4% | −22% / −62% |
| ARN.MIAlerion Clean Power S.p.a. In Forma Abbreviata Alerion S.p.a. | 969.2 m | 10.4 | 23.5% | 41.0% | +1.8% | −5% / −23% |
| AVIO.MIAvio S.p.a. | 883.6 m | 86.8 | 2.1% | 1.8% | +21.5% | +18% / +291% |
| CIR.MICir S.p.a. - Compagnie Industriali Riunite | 783.3 m | 6.0 | 17.1% | 7.3% | +1.6% | +4% / +72% |
| ASC.MIAscopiave S.p.a. | 646.3 m | 18.0 | 4.2% | 17.5% | +13.4% | −8% / +33% |
| AC5.MIAcinque S.p.a. | 412.6 m | 19.6 | 4.1% | 3.6% | +0.2% | −6% / +8% |
| BAN.MIBasic Net S.p.a. | 348.0 m | — | -4.9% | -3.5% | +0.4% | −30% / +5% |
| ADB.MIAeroporto Guglielmo Marconi Di Bologna S.p.a. | 324.7 m | 13.1 | 11.1% | 13.7% | +9.2% | −2% / +12% |
| CAI.MICairo Communication S.p.a. | 289.2 m | 6.4 | 8.1% | 4.4% | −1.3% | −22% / +28% |
| ECNL.MIAquafil S.p.a. | 129.6 m | — | -3.2% | -0.9% | −3.9% | −1% / −52% |
| BEC.MIB&C Speakers S.p.a. | 118.7 m | 11.7 | 18.5% | 10.2% | −1.3% | −26% / −32% |
| ABT.MIAbitare In S.p.a. | 76.0 m | 276.0 | 0.4% | 0.4% | +39.8% | −6% / −47% |
| ELC.MIElica S.p.a. | 64.3 m | — | -7.8% | -2.2% | +1.9% | −34% / −48% |
| DEX.MIDexelance S.p.a. | 50.7 m | 2.8 | 11.0% | 5.4% | +12.6% | −63% / −78% |
| CLE.MIClass Editori S.p.a. | 35.1 m | — | -29.2% | -3.8% | −0.7% | −9% / +106% |
| CLF.MICaleffi - S.p.a. | 11.6 m | 5.2 | 10.9% | 3.8% | −2.5% | −4% / −10% |
| AEF.MIAeffe S.p.a. | 10.1 m | 0.5 | 21.9% | 7.7% | −21.3% | −59% / −86% |
| PIRC.MIPirelli & C. S.p.a. | 6.7 m | 0.0 | 8.3% | 7.3% | +0.0% | +12% / +47% |
1- and 3-year price returns: for PIRC.MI from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (EUR)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 3.78 Total return 2,859% · Per year 2,859% | 6.70 Total return 3,857% · Per year 3,857% | 10.12 Total return 4,708% · Per year 4,708% |
| 3 years | 3.35 Total return 8,153% · Per year 335% | 6.71 Total return 11,576% · Per year 389% | 11.16 Total return 14,754% · Per year 430% |
| 5 years | 2.97 Total return 12,841% · Per year 164% | 6.71 Total return 19,301% · Per year 187% | 12.32 Total return 25,838% · Per year 204% |
- Exit P/E± 1.68
- Net margin± 1.17
- Annual revenue growth± 1.01
- Annual dilution± 0.10
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Pirelli is a global tyre maker focused on the Prestige and Premium segments, and in 2025 it reported revenue of about 6.78 billion euros 1. For the coming period the company expects solid organic growth and a slightly better adjusted EBIT margin, under macroeconomic and geopolitical uncertainty 1.
SWOT
Strengths
- A single brand positioned in Prestige and Premium and the position of the only player fully focused on consumers worldwide.
- High technological and production barriers, supported by an extensive homologation portfolio.
- Access to undrawn credit lines and refinancing of debt with extended maturities, which strengthens liquidity.
Weaknesses
- Exposure to volatile raw material prices, which affects the cost structure.
- Currency exposure, both transactional and translational, with no hedging policy for the latter.
- Dependence on the automotive sector, especially on just in time chains and original equipment customers.
Opportunities
- Growth of the Replacement channel for the High Value segment, especially in Europe and Asia-Pacific.
- Gradual reduction of exposure in the Standard segment, which could improve margins.
- Technological development linked to smart tyres, if integration of activities remains effective.
Threats
- Intensifying competition from players with large resources, which could affect the medium-term position.
- Trade restrictions and tariffs, which could limit access to certain markets.
- Structural changes in mobility, which could reduce urban demand for private cars.
Risks
- Macroeconomic uncertaintymedium
Trade and geopolitical tensions and possible corrections in financial markets could weigh on the global economy and tyre demand 1.
- Geopolitical risks in Argentina and Russiamedium
Political and economic instability, the tax regime and the circulation of funds in these countries could limit the group's ability to benefit fully from local cash flows 1.
- Raw material priceshigh
Volatility in rubber and petroleum-derived raw materials could affect costs and the margins of finished products 1.
- Long-term shift in demand structuremedium
Changes in mobility, electrification and automation could alter tyre volumes, and the impact is hard to predict 1.
- Governance tensionshigh
The non-renewal of a shareholder pact with a strategic shareholder, notifications to Italian authorities and the dispute over Cyber Tyre activities could affect governance and strategy 1.
Investment thesis
What would need to be true (bull case)
- If the High Value segment keeps growing faster than the market and the adjusted EBIT margin improves, the group could consolidate its leadership in Prestige and Premium 1.
- The liquidity structure, with undrawn credit lines and extended maturities, could offer flexibility in periods of volatility 1.
- Reducing exposure in the Standard segment could support better revenue quality over the medium term 1.
What would break the thesis
- If global demand remains almost flat and raw material prices rise, margins could come under pressure 1.
- Governance tensions and the dispute over Cyber Tyre activities could create uncertainty for investors and management 1.
- Exposure to unstable markets and to tariffs could limit the group's ability to fully convert cash flows into local resources 1.
What to watch
- Trend of the adjusted EBIT margin against guidance of about 16%2026
- Delivery against guidance on revenue and net cash flow before dividends2026
- Effect of the end of the shareholder pact and the Golden Power procedures2026
- Development of High Value demand in the Replacement channel2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Pirelli & C. S.p.A. is the holding company of a group that designs, produces and sells tyres for cars, commercial vehicles, motorcycles and other segments, selling products in over 160 countries 1. The group strategy rests on a 'local for local' production model that reduces exposure to trade barriers 1. Pirelli presents itself as the only player in the tyre industry fully focused on consumer users worldwide, with a single brand positioned in the Prestige and Premium segment 1.
Segments
High Value (Prestige and Premium)
The High Value segment is the main engine of the strategy, and for 2026 the company expects mid-single digit demand growth, supported by the Replacement channel in Europe, Apac and North America 1. Pirelli intends to outperform the market in this segment in 2026 1.
Standard
The Standard segment is being reduced in a controlled way: the company expects demand to fall at a low single-digit rate and intends to gradually cut its exposure 1.
Market context
Pirelli estimates global Car tyre demand for 2026 between roughly -1% and roughly +1%, with a recovery in High Value original equipment demand in the second half of the year, in line with car production 1. Developments however depend on trade tensions, tariffs and inflationary pressure on production factors 1.
Trends
- Electrification and changing mobility patternsmixed
Electrified propulsion, autonomous driving and cultural shifts in mobility alter the long-term structure of demand; the company says the impact on the tyre sector is hard to forecast 1.
- Growing demand for the High Value segmenttailwind
Consumers and makers of Prestige and Premium vehicles support growth in the High Value segment, where Pirelli has a central position 1.
- Volatile raw material pricesheadwind
Prices of natural and synthetic rubber, petroleum-based raw materials and those from sustainable sources remain a source of cost uncertainty 1.
- Geopolitical and trade tensionsheadwind
Tensions in the Middle East, the war in Ukraine and the review of the USMCA agreement could disrupt logistics chains and introduce additional tariffs 1.
Competitive position
The tyre market is dominated by numerous players, some with significant financial and industrial resources and brands of international reputation 1. Pirelli argues that high technological and production barriers limit the intensification of competition in its segment, and its strategy relies on an extensive homologation portfolio in Prestige and Premium 1.
- Michelin
Global competitor in the premium segment, mentioned in the analysed sources only generically among the major international operators.
- Bridgestone
Large international operator, mentioned in the analysed sources only generically among competitors with large financial and industrial resources.
- GoodyearGT
American tyre maker active in similar markets, mentioned only generically in the context of sector competition.
- Chinese tyre makers
Chinese producers with strong brands and industrial capacity, mentioned generically in the analysis of sector competition.
News & filings
In the press
- Pirelli Cinturato Winter 3 Takes Top Honors in European TestsBudapest Business Journal (HU, EN) · 02 Nov 2026 · EN
- Calendario Pirelli 2027 | a New Delhi Sølve Sundsbø e Avani Rai raccontano lIndia con nove attrici tra cui Freida Pinto e Aditi Rao HydariSurge — GDELT DOC · 23 Oct 2026 · RO
- Compania italiană Pirelli, cu fabrică și în România, semnează un acord cu BKT pentru producția a 800.000 de anvelope în IndiaEconomedia · 23 Oct 2026 · RO
- Pirelli semnează un acord cu BKT pentru a produce 800.000 de anvelope în IndiaProfit.ro · 23 Oct 2026 · RO
- Czech Arms Tycoon Expands Holdings With Pirelli Stake PurchaseBloomberg Markets · 31 Jul 2026 · EN
- Cehul Michal Strnad negociază preluarea unei participații de 14% la Pirelli de la grupul chinez Sinochem. Pirelli deține o fabrică la Slatina, cu peste 4.000 de angajațiEconomedia · 03 Jul 2026 · RO
- Tire giant Pirelli vows legal action as short seller alleges ‘close relationship’ with RussiaCNBC World · 04 Jun 2026 · EN
- Pirelli Slides After Short Seller Warns on Exposure to RussiaBloomberg Markets · 04 Jun 2026 · EN
Annual reports (ESEF)
- Annual report 202529 Apr 2026
- Annual report 202529 Apr 2026
- Annual report 202407 May 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Pirelli & C. S.p.A. · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.