Natuzzi SpA, a prominent player in the furnishings industry, has recently faced challenges that might make investors reconsider its appeal compared to competitors like Bassett Furniture. With a net income showing a loss of 16.2 million, concerns about the company's financial health are growing. The probability of bankruptcy stands at a concerning 42.35%, which could be a red flag for those looking for stability in their investments. As the market dynamics shift, investors are keenly observing whether Natuzzi can regain its footing or if Bassett Furniture will emerge as the more attractive option in this competitive sector. While many investors are steering clear of the household durables sector, it's worth taking a closer look at Natuzzi SpA to see how it measures up against competitors like Bassett Furniture. Let's delve into some of the key competitive factors that differentiate Natuzzi from Bassett and similar companies.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Natuzzi SpA. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Natuzzi SpA, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Natuzzi SpA's Liquidity
Natuzzi SpA
financial leverage refers to using borrowed capital as a funding source to finance Natuzzi SpA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Natuzzi SpA financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Natuzzi SpA's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Natuzzi SpA's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Natuzzi SpA's total debt and its cash.
Natuzzi SpA Gross Profit
Natuzzi SpA Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Natuzzi SpA previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Natuzzi SpA Gross Profit growth over the last 10 years. Please check Natuzzi SpA's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Natuzzi SpA
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Natuzzi SpA revenue. Based on the latest financial disclosure, Natuzzi SpA reported 328.62
M of revenue.
This is 95.39% lower than that of the Household Durables sector and significantly higher than that of the
Consumer Discretionary industry. The revenue for all United States stocks is 96.52% higher than that of Natuzzi SpA. As for Bassett Furniture we see revenue of 390.14
M, which is much higher than that of the Consumer Discretionary
| Natuzzi | 328.62 Million |
| Sector | 0.0 |
| Bassett | 390.14 Million |
All that glitters is not gold, and this might be the case for Natuzzi SpA as it faces competition from Bassett Furniture. Natuzzi's financials reveal some challenges, with a net income loss of 16.2 million and a slim operating margin of just 0.01%. While the company boasts a book value per share of 6.26, its profitability metrics, such as a negative return on equity of 0.21, suggest potential headwinds. With a probability of bankruptcy at 42.35%, investors may find Bassett Furniture's steadier performance more appealing. As Natuzzi navigates these hurdles, savvy investors will weigh the risks and rewards carefully..
Natuzzi SpA has 58 percent chance to slide under $4.24 in the coming weeks
Natuzzi SpA's stock is currently experiencing some challenges, with its risk-adjusted performance dropping to -0.16. This indicates that investors aren't being adequately compensated for the risks involved, which could mean more volatility is on the horizon. There's a 58% chance the stock might fall below $4.24 in the coming weeks, so investors should tread carefully. It might be a good time to reevaluate your holdings and see if the potential risks fit your investment strategy.
Natuzzi SpA is showing higher-than-average downside volatility, which can affect stock prices, especially in bear markets. This volatility often prompts investors to adjust their portfolios, potentially shifting to other assets as prices decline.As Natuzzi SpA's stock continues to decline despite a generally positive market environment, potential investors should approach with caution. The company's valuation real value of 5.04 suggests some underlying worth, yet the analyst consensus remains a strong sell, indicating skepticism about its near-term prospects. With the highest estimated target price at 7.22, there is a potential upside, but this is tempered by a possible downside price of just 0.0433, highlighting significant risk. Investors should weigh these factors carefully, considering both the potential for recovery and the inherent volatility before making any investment decisions..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Natuzzi SpA. Please refer to our
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