Added to YB: 2026-02-23
Pitch date: 2026-02-19
BZU.MI [neutral]
Buzzi S.p.A.
+0.16%
current return
Author Info
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Company Info
Buzzi S.p.A., together with its subsidiaries, manufactures, distributes, and sells cement, ready-mix concrete, and natural aggregates.
Market Cap
EUR 8.7B
Pitch Price
EUR 49.00
Price Target
N/A
Dividend
1.45%
EV/EBITDA
5.96
P/E
9.66
EV/Sales
1.82
Sector
Construction Materials
Category
value
BUZZI S.P.A ($BZU.MI)
BZU.MI (watchlist): Italian cement co w/ 58% EBITDA from US (Texas/Midwest via river logistics) trading 6x EBITDA vs US peers 10x+. Family controlled w/ €1.1B net cash (lazy capital allocation), no buybacks despite discount. US sales -7% on rates, margin 30%→25% on operating leverage. New importer competition (Turkey) pressuring Texas pricing. €350M+ annual 'green tax' capex for decarbonization to 2030 hurts FCF conversion. Acquired Brazil (margin dilutive 21% vs 27% group) & UAE assets (import hedge). Base case: 2% growth, 25.5% margin, 6x multiple = 4% IRR by 2028. Bear: 4.5x = -9% IRR. Bull: 5% growth, 28% margin, 7.5x = 17% IRR. Attractive only <€42 entry for fortress balance sheet; current price offers insufficient upside given opportunity cost. Watchlist for market dislocation.
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