# Avio (AVIO.MI)

Canonical: https://gigainvestors.com/s/AVIO.MI

Analysis as of: 2026-10-16T07:42:11.703Z. Financial observations: FY2016–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 29.99 per share; close as of 2026-10-14.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 0.57×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.07×

- FY2018: 0.06×

- FY2019: 0.06×

- FY2020: 0.05×

- FY2021: 0.03×

- FY2022: 0.01×

- FY2023: 0.02×

- FY2024: 0.02×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.2%

- ROIC, second-lowest year: 3.2%

- Typical minus recent gross margin: -41.5 pp

- Typical gross margin (annual median): 28.9%

- Recent gross margin (lower of latest and 3-year median): 70.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.4%

- ROIC including acquisitions, ten-year median: 0.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.0%

- FY2017: 13.7%

- FY2018: 13.2%

- FY2019: 13.0%

- FY2020: 8.5%

- FY2021: 6.1%

- FY2022: 1.4%

- FY2023: 3.2%

- FY2024: 5.3%

- FY2025: 24.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.35×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR -11M

- Net income, five-year total: EUR 31M

- Return on incremental invested capital: -6.1%

- Working capital / revenue, annual change: -5.8 pp

- Working capital / revenue, change between three-year averages: -38.5 pp

- Working capital / revenue, final three-year average: 5.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.66×

- FY2022: 4.14×

- FY2023: -2.47×

- FY2024: 0.69×

- FY2025: 0.81×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 13.2% vs 5.3%

- Per-share earnings: 0.92 to 0.25 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 2.9%

- Market cap gain: EUR 515M

- Cumulative retained earnings: EUR 40M

- Diluted shares, 5-year annual growth: 2.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -19.6%

- Per-share value change: EUR -0.67

- Per-share value, starting three-year median: EUR 0.92

- Per-share value, ending three-year median: EUR 0.25

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 1.8%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: EUR 115M

- ROIC, first three-year median: 13.2%

- ROIC, last three-year median: 5.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: EUR 0.70

- FY2018: EUR 0.92

- FY2019: EUR 0.99

- FY2020: EUR 0.55

- FY2021: EUR 0.33

- FY2022: EUR -0.02

- FY2023: EUR 0.25

- FY2024: EUR 0.18

- FY2025: EUR 0.35

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -9.5%

- Receivables to sales index (DSRI): 1.50×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 16.04×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.28×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.0%

- FY2017: 1.5%

- FY2018: -2.1%

- FY2019: -4.8%

- FY2020: -3.0%

- FY2021: -2.7%

- FY2022: -5.1%

- FY2023: -3.4%

- FY2024: -5.0%

- FY2025: -9.5%

## Holders

## Price story

Down 44% since Sep 2025 · sales +21.5%

Story as of 2026-10-16T10:00:12.239Z; price observation 2026-10-14.

### Sales · FY2024–2025

sales +21.5%; source https://filings.xbrl.org/8156008F25C4B0E7C860/2025-12-31/ESEF/IT/0/8156008F25C4B0E7C860-2025-12-31-1-it/reports/8156008F25C4B0E7C860-2025-12-31-1-it.xhtml; observed 2026-04-07.

- FY2016: EUR 340M 

- FY2017: EUR 325M 

- FY2018: EUR 440M 

- FY2019: EUR 391M 

- FY2020: EUR 352M 

- FY2021: EUR 320M 

- FY2022: EUR 371M 

- FY2023: EUR 344M 

- FY2024: EUR 480M 

- FY2025: EUR 584M 

### Gross margin · FY2025

gross margin 70.5%; source https://filings.xbrl.org/8156008F25C4B0E7C860/2025-12-31/ESEF/IT/0/8156008F25C4B0E7C860-2025-12-31-1-it/reports/8156008F25C4B0E7C860-2025-12-31-1-it.xhtml; observed 2026-04-07.

- FY2016: 24.5% 

- FY2017: 24.8% 

- FY2018: 24.0% 

- FY2019: 27.8% 

- FY2020: 30.0% 

- FY2021: 30.2% 

- FY2022: 19.5% 

- FY2023: 73.4% 

- FY2024: 70.9% 

- FY2025: 70.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are EUR 583.7 million.

- Source: https://filings.xbrl.org/8156008F25C4B0E7C860/2025-12-31/ESEF/IT/0/8156008F25C4B0E7C860-2025-12-31-1-it.json (filed 2026-04-07); FY2025: revenue 583690477; grossProfit 411351659; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 70.5% to 73.4% during 2023–25; it earns 10.2% on its capital.

- Source: https://eodhd.com/api/fundamentals/2ZP.F.json#2023-12-31 (filed 2026-04-07); FY2023: grossProfit / revenue = 73.4%.

- Source: https://eodhd.com/api/fundamentals/2ZP.F.json#2024-12-31 (filed 2026-04-07); FY2024: grossProfit / revenue = 70.9%.

- Source: https://eodhd.com/api/fundamentals/2ZP.F.json#2025-12-31 (filed 2026-04-07); FY2025: grossProfit / revenue = 70.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); 10-year return on capital observations [[2016,0.11972848991787234],[2017,0.13681759030994536],[2018,0.13180976477182424],[2019,0.1301154117016465],[2020,0.08523896953096582],[2021,0.061299835603807175],[2022,0.013707073554126927],[2023,0.03225736132209027],[2024,0.05279427627722266],[2025,0.2481511960379113]]; median 0.10248372972441908. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 9 years.

- Source: https://eodhd.com/api/fundamentals/2ZP.F.json#2017-12-31 (filed 2026-04-07); FY2017: growth capex 0; upkeep 18904500; owner earnings 10085125. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2ZP.F.json#2018-12-31 (filed 2026-04-07); FY2018: growth capex 0; upkeep 15181000; owner earnings 26756000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2ZP.F.json#2019-12-31 (filed 2026-04-07); FY2019: growth capex 0; upkeep 16226000; owner earnings 24521575.4. Growth capex / owner earnings = 0.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/AVIO.MI (filed 2026-04-07); FY2024: growth capex 17653932; upkeep 17436068; cash acquisitions 0; owner earnings 4179220.8. Growth capex plus acquisitions / owner earnings = 4.224216150532176.

- Source: https://eodhd.com/api/fundamentals/2ZP.F.json#2025-12-31 (filed 2026-04-07); FY2025: growth capex 23656933; upkeep 20295067; owner earnings 8454676. Growth capex / owner earnings = 2.7980886553192574.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Dividend observations: [[2017,10017000],[2018,10017000],[2019,11598000],[2020,7321000],[2021,7321000],[2022,4500000],[2023,0],[2024,6000000],[2025,3750000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 1.5 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Closing price 29.989999771118164 EUR; reporting-to-trading FX 1; FY2025 annual sales per share 19.670940838334783; price multiple 1.5245839036165252. FY2025 cash earnings/share 0.2849308631144396. Closing-price date 2026-10-14.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 10.40 per share

- 2016-12: EUR 10.62 per share

- 2017-01: EUR 10.85 per share

- 2017-02: EUR 10.98 per share

- 2017-03: EUR 11.25 per share

- 2017-04: EUR 12.96 per share

- 2017-05: EUR 13.25 per share

- 2017-06: EUR 13.20 per share

- 2017-07: EUR 12.54 per share

- 2017-08: EUR 12.73 per share

- 2017-09: EUR 13.60 per share

- 2017-10: EUR 14.05 per share

- 2017-11: EUR 13.97 per share

- 2017-12: EUR 13.49 per share

- 2018-01: EUR 13.68 per share

- 2018-02: EUR 13.06 per share

- 2018-03: EUR 13.90 per share

- 2018-04: EUR 14.72 per share

- 2018-05: EUR 15.20 per share

- 2018-06: EUR 14.54 per share

- 2018-07: EUR 14.20 per share

- 2018-08: EUR 12.96 per share

- 2018-09: EUR 12.80 per share

- 2018-10: EUR 11.48 per share

- 2018-11: EUR 11.04 per share

- 2018-12: EUR 11.16 per share

- 2019-01: EUR 11.70 per share

- 2019-02: EUR 11.52 per share

- 2019-03: EUR 12.56 per share

- 2019-04: EUR 12.66 per share

- 2019-05: EUR 13.08 per share

- 2019-06: EUR 14.52 per share

- 2019-07: EUR 12.12 per share

- 2019-08: EUR 12.18 per share

- 2019-09: EUR 11.90 per share

- 2019-10: EUR 12.24 per share

- 2019-11: EUR 13.68 per share

- 2019-12: EUR 13.86 per share

- 2020-01: EUR 14.74 per share

- 2020-02: EUR 13.84 per share

- 2020-03: EUR 11.46 per share

- 2020-04: EUR 13.70 per share

- 2020-05: EUR 15.46 per share

- 2020-06: EUR 15.26 per share

- 2020-07: EUR 13.62 per share

- 2020-08: EUR 14.64 per share

- 2020-09: EUR 13.42 per share

- 2020-10: EUR 12.18 per share

- 2020-11: EUR 11.28 per share

- 2020-12: EUR 11.34 per share

- 2021-01: EUR 11.92 per share

- 2021-02: EUR 12.10 per share

- 2021-03: EUR 12.28 per share

- 2021-04: EUR 13.86 per share

- 2021-05: EUR 13.18 per share

- 2021-06: EUR 12.44 per share

- 2021-07: EUR 11.86 per share

- 2021-08: EUR 12.10 per share

- 2021-09: EUR 10.88 per share

- 2021-10: EUR 11.50 per share

- 2021-11: EUR 11.06 per share

- 2021-12: EUR 11.70 per share

- 2022-01: EUR 10.56 per share

- 2022-02: EUR 11.20 per share

- 2022-03: EUR 10.64 per share

- 2022-04: EUR 11.30 per share

- 2022-05: EUR 11.52 per share

- 2022-06: EUR 11.00 per share

- 2022-07: EUR 11.46 per share

- 2022-08: EUR 13.76 per share

- 2022-09: EUR 9.19 per share

- 2022-10: EUR 11.30 per share

- 2022-11: EUR 11.18 per share

- 2022-12: EUR 9.57 per share

- 2023-01: EUR 9.94 per share

- 2023-02: EUR 10.26 per share

- 2023-03: EUR 9.33 per share

- 2023-04: EUR 9.19 per share

- 2023-05: EUR 9.59 per share

- 2023-06: EUR 9.33 per share

- 2023-07: EUR 9.07 per share

- 2023-08: EUR 9.27 per share

- 2023-09: EUR 8.12 per share

- 2023-10: EUR 7.32 per share

- 2023-11: EUR 7.52 per share

- 2023-12: EUR 8.46 per share

- 2024-01: EUR 8.24 per share

- 2024-02: EUR 9.85 per share

- 2024-03: EUR 10.12 per share

- 2024-04: EUR 11.36 per share

- 2024-05: EUR 11.86 per share

- 2024-06: EUR 11.90 per share

- 2024-07: EUR 13.02 per share

- 2024-08: EUR 13.02 per share

- 2024-09: EUR 12.30 per share

- 2024-10: EUR 11.88 per share

- 2024-11: EUR 12.32 per share

- 2024-12: EUR 13.90 per share

- 2025-01: EUR 16.06 per share

- 2025-02: EUR 16.90 per share

- 2025-03: EUR 17.24 per share

- 2025-04: EUR 19.14 per share

- 2025-05: EUR 21.30 per share

- 2025-06: EUR 23.65 per share

- 2025-07: EUR 30.00 per share

- 2025-08: EUR 35.60 per share

- 2025-09: EUR 53.50 per share

- 2025-10: EUR 37.55 per share

- 2025-11: EUR 24.95 per share

- 2025-12: EUR 29.35 per share

- 2026-01: EUR 34.65 per share

- 2026-02: EUR 35.35 per share

- 2026-03: EUR 33.10 per share

- 2026-04: EUR 31.54 per share

- 2026-05: EUR 43.07 per share

- 2026-06: EUR 31.45 per share

- 2026-07: EUR 29.03 per share

- 2026-08: EUR 29.42 per share

- 2026-09: EUR 29.36 per share

- 2026-10: EUR 29.75 per share

## Annual estimated value (EUR per share)

- FY2020: low EUR 9.22 per share, central EUR 9.86 per share, high EUR 10.71 per share

- FY2021: low EUR 8.05 per share, central EUR 8.63 per share, high EUR 9.40 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/8156008F25C4B0E7C860/2025-12-31/ESEF/IT/0/8156008F25C4B0E7C860-2025-12-31-1-it/reports/8156008F25C4B0E7C860-2025-12-31-1-it.xhtml); period 2025-12-31, filed 2026-04-07.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations