# Pirelli & C (PIRC.MI)

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

Analysis as of: 2026-10-16T07:36:21.932Z. Financial observations: FY2016–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

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

Share price: EUR 6.69 per share; close as of 2026-10-14.

## Checklist

### understandable: pass

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

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.14×

- FY2018: 0.14×

- FY2019: 0.15×

- FY2020: 0.05×

- FY2021: 0.11×

- FY2022: 0.12×

- FY2023: 0.10×

- FY2024: 0.13×

- FY2025: 0.13×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 8.8%

- ROIC, second-lowest year: 6.6%

- Typical minus recent gross margin: 3.5 pp

- Typical gross margin (annual median): 66.3%

- Recent gross margin (lower of latest and 3-year median): 62.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.9%

- ROIC including acquisitions, ten-year median: 5.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.5%

- FY2017: 11.8%

- FY2018: 10.9%

- FY2019: 8.7%

- FY2020: 2.7%

- FY2021: 6.6%

- FY2022: 8.8%

- FY2023: 8.4%

- FY2024: 11.3%

- FY2025: 10.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.23×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 2.7B

- Net income, five-year total: EUR 2.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, change between three-year averages: -9.1 pp

- Working capital / revenue, final three-year average: 0.2%

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

- FY2021: 1.40×

- FY2022: 1.34×

- FY2023: 1.13×

- FY2024: 1.15×

- FY2025: 1.21×

### management: pass

- 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: 10.9% vs 10.7%

- Per-share earnings: 0.43 to 0.48 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: EUR -1.4B

- Cumulative retained earnings: EUR 321M

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.8%

- Per-share value change: EUR 0.05

- Per-share value, starting three-year median: EUR 0.43

- Per-share value, ending three-year median: EUR 0.48

- Average buyback yield: 0.2%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: EUR 3.4B

- ROIC, first three-year median: 10.9%

- ROIC, last three-year median: 10.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: EUR 0.18

- FY2018: EUR 0.43

- FY2019: EUR 0.44

- FY2020: EUR 0.03

- FY2021: EUR 0.30

- FY2022: EUR 0.42

- FY2023: EUR 0.48

- FY2024: EUR 0.47

- FY2025: EUR 0.50

### accounting: pass

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.62×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.80×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.8%

- FY2017: -6.5%

- FY2018: -2.0%

- FY2019: -4.2%

- FY2020: -4.3%

- FY2021: -4.4%

- FY2022: -5.1%

- FY2023: -6.5%

- FY2024: -6.0%

- FY2025: -6.1%

## Holders

## Price story

Up 59% since Oct 2023 · sales +0%

Story as of 2026-10-16T10:00:07.288Z; price observation 2026-10-14.

### Sales · FY2024–2025

sales +0%; source https://filings.xbrl.org/815600A0C9AFC1F2A709/2025-12-31/ESEF/IT/0/815600A0C9AFC1F2A709-2025-12-31-1-it/reports/815600A0C9AFC1F2A709-2025-12-31-1-it.html; observed 2026-04-29.

- FY2016: EUR 6.1B 

- FY2017: EUR 5.4B 

- FY2018: EUR 5.2B 

- FY2019: EUR 5.3B 

- FY2020: EUR 4.3B 

- FY2021: EUR 5.3B 

- FY2022: EUR 6.6B 

- FY2023: EUR 6.8B 

- FY2024: EUR 6.8B 

- FY2025: EUR 6.8B 

### Gross margin · FY2025

gross margin 62.8%; source https://filings.xbrl.org/815600A0C9AFC1F2A709/2025-12-31/ESEF/IT/0/815600A0C9AFC1F2A709-2025-12-31-1-it/reports/815600A0C9AFC1F2A709-2025-12-31-1-it.html; observed 2026-04-29.

- FY2016: 66.0% 

- FY2017: 65.9% 

- FY2018: 68.9% 

- FY2019: 67.4% 

- FY2020: 66.6% 

- FY2021: 68.9% 

- FY2022: 66.7% 

- FY2023: 61.8% 

- FY2024: 64.0% 

- FY2025: 62.8% 

## Owner memo

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

### How it makes money

Operates in auto parts; annual sales are EUR 6.8 billion.

- Source: https://filings.xbrl.org/815600A0C9AFC1F2A709/2025-12-31/ESEF/IT/0/815600A0C9AFC1F2A709-2025-12-31-1-it.json (filed 2026-04-29); FY2025: revenue 6776157000; grossProfit 4252957000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 61.8% to 64% during 2023–25; it earns 8.8% on its capital.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2023-12-31 (filed 2026-04-29); FY2023: grossProfit / revenue = 61.8%.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2024-12-31 (filed 2026-04-29); FY2024: grossProfit / revenue = 64%.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2025-12-31 (filed 2026-04-29); FY2025: grossProfit / revenue = 62.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); 10-year return on capital observations [[2016,0.08528068489963933],[2017,0.11761313518931807],[2018,0.10925075212846222],[2019,0.08680553575714939],[2020,0.026538085096247638],[2021,0.06620153194912755],[2022,0.08844352073444044],[2023,0.08424066098409326],[2024,0.11273479089316985],[2025,0.10672949884404775]]; median 0.08762452824579492. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.9% of cash earnings; paid dividends in 9 of 10 years.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2016-12-31 (filed 2026-04-29); FY2016: growth capex 0; upkeep 372183000; owner earnings 155256000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2017-12-31 (filed 2026-04-29); FY2017: growth capex 0; upkeep 469836000; owner earnings 78013000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2018-12-31 (filed 2026-04-29); FY2018: growth capex 0; upkeep 451801000; owner earnings 394328000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2019-12-31 (filed 2026-04-29); FY2019: growth capex 0; upkeep 365935000; owner earnings 503382600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2020: growth capex 0; upkeep 193406000; owner earnings 260356400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2021: growth capex 0; upkeep 286671000; owner earnings 423921600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2022-12-31 (filed 2026-04-29); FY2022: growth capex 0; upkeep 303491000; cash acquisitions 0; owner earnings 561439000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2023-12-31 (filed 2026-04-29); FY2023: growth capex 0; upkeep 399036000; cash acquisitions 0; owner earnings 541524000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2024-12-31 (filed 2026-04-29); FY2024: growth capex 0; upkeep 403673000; cash acquisitions 32339000; owner earnings 539902400. Growth capex plus acquisitions / owner earnings = 0.05989786302116827.

- Source: https://eodhd.com/api/fundamentals/2PI.F.json#2025-12-31 (filed 2026-04-29); FY2025: growth capex 0; upkeep 377866000; cash acquisitions 5623000; owner earnings 601611000. Growth capex plus acquisitions / owner earnings = 0.009346571123200873.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Dividend observations: [[2016,2053000],[2017,12742000],[2018,185768000],[2019,185768000],[2020,0],[2021,80000000],[2022,185396000],[2023,222871000],[2024,204400000],[2025,259096000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Closing price 6.690000057220459 EUR; reporting-to-trading FX 1; FY2025 annual sales per share 6.8102080402010055; price multiple 0.9823488530348923. FY2025 cash earnings/share 0.6046341708542714. Closing-price date 2026-10-14.

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

- 2017-11: EUR 7.01 per share

- 2017-12: EUR 7.25 per share

- 2018-01: EUR 7.76 per share

- 2018-02: EUR 7.29 per share

- 2018-03: EUR 7.20 per share

- 2018-04: EUR 7.20 per share

- 2018-05: EUR 7.32 per share

- 2018-06: EUR 7.15 per share

- 2018-07: EUR 7.47 per share

- 2018-08: EUR 6.94 per share

- 2018-09: EUR 7.23 per share

- 2018-10: EUR 6.49 per share

- 2018-11: EUR 6.21 per share

- 2018-12: EUR 5.61 per share

- 2019-01: EUR 5.70 per share

- 2019-02: EUR 5.90 per share

- 2019-03: EUR 5.74 per share

- 2019-04: EUR 6.51 per share

- 2019-05: EUR 5.11 per share

- 2019-06: EUR 5.20 per share

- 2019-07: EUR 5.34 per share

- 2019-08: EUR 4.72 per share

- 2019-09: EUR 5.43 per share

- 2019-10: EUR 5.18 per share

- 2019-11: EUR 5.15 per share

- 2019-12: EUR 5.14 per share

- 2020-01: EUR 4.37 per share

- 2020-02: EUR 4.25 per share

- 2020-03: EUR 3.27 per share

- 2020-04: EUR 3.55 per share

- 2020-05: EUR 4.03 per share

- 2020-06: EUR 3.78 per share

- 2020-07: EUR 3.36 per share

- 2020-08: EUR 3.62 per share

- 2020-09: EUR 3.66 per share

- 2020-10: EUR 3.58 per share

- 2020-11: EUR 4.50 per share

- 2020-12: EUR 4.43 per share

- 2021-01: EUR 4.31 per share

- 2021-02: EUR 4.78 per share

- 2021-03: EUR 5.00 per share

- 2021-04: EUR 4.68 per share

- 2021-05: EUR 4.86 per share

- 2021-06: EUR 4.90 per share

- 2021-07: EUR 5.10 per share

- 2021-08: EUR 5.07 per share

- 2021-09: EUR 5.08 per share

- 2021-10: EUR 5.31 per share

- 2021-11: EUR 5.43 per share

- 2021-12: EUR 6.11 per share

- 2022-01: EUR 6.23 per share

- 2022-02: EUR 4.94 per share

- 2022-03: EUR 4.93 per share

- 2022-04: EUR 4.75 per share

- 2022-05: EUR 4.60 per share

- 2022-06: EUR 3.88 per share

- 2022-07: EUR 4.21 per share

- 2022-08: EUR 3.78 per share

- 2022-09: EUR 3.36 per share

- 2022-10: EUR 3.82 per share

- 2022-11: EUR 4.24 per share

- 2022-12: EUR 4.00 per share

- 2023-01: EUR 4.59 per share

- 2023-02: EUR 4.82 per share

- 2023-03: EUR 4.62 per share

- 2023-04: EUR 4.75 per share

- 2023-05: EUR 4.41 per share

- 2023-06: EUR 4.52 per share

- 2023-07: EUR 4.85 per share

- 2023-08: EUR 4.61 per share

- 2023-09: EUR 4.56 per share

- 2023-10: EUR 4.20 per share

- 2023-11: EUR 4.56 per share

- 2023-12: EUR 4.93 per share

- 2024-01: EUR 5.04 per share

- 2024-02: EUR 5.45 per share

- 2024-03: EUR 5.68 per share

- 2024-04: EUR 5.97 per share

- 2024-05: EUR 6.08 per share

- 2024-06: EUR 5.56 per share

- 2024-07: EUR 5.79 per share

- 2024-08: EUR 5.49 per share

- 2024-09: EUR 5.45 per share

- 2024-10: EUR 5.03 per share

- 2024-11: EUR 5.13 per share

- 2024-12: EUR 5.47 per share

- 2025-01: EUR 5.82 per share

- 2025-02: EUR 6.03 per share

- 2025-03: EUR 5.47 per share

- 2025-04: EUR 5.42 per share

- 2025-05: EUR 6.30 per share

- 2025-06: EUR 5.85 per share

- 2025-07: EUR 5.92 per share

- 2025-08: EUR 5.85 per share

- 2025-09: EUR 5.79 per share

- 2025-10: EUR 6.08 per share

- 2025-11: EUR 5.99 per share

- 2025-12: EUR 5.86 per share

- 2026-01: EUR 6.35 per share

- 2026-02: EUR 6.37 per share

- 2026-03: EUR 5.90 per share

- 2026-04: EUR 5.85 per share

- 2026-05: EUR 6.31 per share

- 2026-06: EUR 6.61 per share

- 2026-07: EUR 6.60 per share

- 2026-08: EUR 6.66 per share

- 2026-09: EUR 6.70 per share

- 2026-10: EUR 6.72 per share

## Annual estimated value (EUR 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/815600A0C9AFC1F2A709/2025-12-31/ESEF/IT/0/815600A0C9AFC1F2A709-2025-12-31-1-it/reports/815600A0C9AFC1F2A709-2025-12-31-1-it.html); period 2025-12-31, filed 2026-04-29.

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.