PRYSMIAN

Analysis of Prysmian share price

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Among the European company’s shares which you can find on the online share market , those of Italian companies are particularly popular with investors. We decided to tell you more about the Prysmian share here. You'll discover information about the group and its activities, but also historical data from the technical analysis of its stock price, to help you develop your own strategies.

Elements that can influence the price of this asset:

Analysis N°1

First of all, the electricity and the telecommunications market in Italy along with the rest of Europe are to be monitored very closely as Prysmian's activities depend largely on their financial health and demand level.

Analysis N°2

The development of fibre optics is also an interesting element to analyse because it represents an additional profit opportunity for Prysmian.

Analysis N°3

Closely monitoring the group's news on establishing strategic partnerships and alliances allowing it to develop its profitability is also important.

Analysis N°4

Finally, paying attention to the operations carried out by Prysmian aimed at expanding its activities from a geographic point of view, notably by reaching new countries close to Italy or in the rest of Europe.

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General presentation of Prysmian

The Prysmian group is a company specializing in the design, production, sale and installation of cables and cabling systems. More specifically, most of its turnover is made by electric cables and wiring systems, and another part, by telecom cables and wiring systems.

With over 90 production sites around the world, this group reaches the Italian market, along with the European, North African, North American, Asian and Latin American markets.

The Prysmian share price is currently listed on the Borsa Italiana MTA market in Italy. It's also included in the calculation of the EuroStoxx 50 stock market index.

 

Analysis of Prysmian share price
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The major competitors of Prysmian

The Prysmian group is still number one worldwide in the cabling sector. As a result, its market shares are highly coveted by other large companies in this field of activity. So it's essential to closely monitor this sector and its major players if you plan to invest part of your capital in the Prysmian share price. To do so, here's the list of the current main competitors of Prysmian, classified by level of average annual turnover.

Nexans

 The French company Nexans is in second position in this sector in terms of turnover, just behind Prysmian.

Sumitomo Electric

The Japanese group Sumitomo Electric currently ranks third in the ranking of the largest cabling companies.

General Cable

An American Company is placed fourth in this ranking.

Southwire

In fifth position the American company Southwire.

LS Cable

Sixth place is occupied by LS Cable.

Furukawa Electric

Next comes the Japanese Furukawa Electric in 7th position.

Fujikura

Then the Japanese Fujikura in 8th place.

Hitachi Cable

The Hitachi Cable subsidiary occupies 9th place.

Leoni

Finally, the Italian company Leoni is in 10th place.


The major partners of Prysmian

In recent years, the Prysmian group has not really created many strategic partnerships, its reputation is more than enough to win contracts around the world.

One thing should be noted, the strategic takeover of Draka, a Dutch cabling company in 2010, which enabled Prysmian to overtake Nexans and place itself at the head of this sector of activity on a global level.

It is possible that Prysmian soon establish other strategic alliances and we therefore advise you to closely monitor its economic and financial news.

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The factors in favour of a rise in the Prysmian share price:
  • Firstly it is important to remember that the Prysmian Group benefits from a strong position against the competition as it is one of the leaders in this activity sector worldwide. For this it relies on various factors including its strong position in this market sector with added value. This success is also due to a high quality product portfolio that is particularly well diversified. To conclude, Prysmian has succeeded over time in implementing a successful international expansion strategy as this company is now well represented throughout the world.
  • From an economic and financial point of view, the Prysmian Group also offers an effective cost structure. To achieve this stability and efficacy the group enthusiastically proceeded with a reorganisation in 2007 managed by a team that was both committed and experienced. This continues even now to provide Prysmian with an improved control of its costs and optimal margins.
  • Although the Prysmian Group is clearly not the only company to exercise its activities in this sector, we note that the barriers obstructing entry are quite significant here which dissuade new competitors from trying to force their way into this market. In fact, to enter into this market sector that has strong added value and where Prysmian currently bases its strategy upon, companies need to be quite a significant size and possess a good sized capital with significant operating funds as well as long experience and strong relations particularly with public service companies.
The factors in favour of a drop in the Prysmian share price:

Against these numerous arguments in favour of a rise in the Prysmian share price we do of course find a number of negative factors concerning the growth possibilities of this asset that could lead to a reversal in the rising trend.

  • For example, we know that the Prysmian Group and its activities depend greatly on the price of copper. Variations in the price of copper therefore have a high impact on the prices charged by Prysmian to its clients and the desire of the group to retain its margins. On the other hand, the direct competitors to the Prysmian Group would prefer the sale prices to remain stable and reduce their margins. This therefore incurs the risk of a reduction in Prysmian’s market share in the situation whereby the price of copper suddenly rises.
  • These movements, often unfavourable relating to the price of copper, add to the general significant downturn in the price of the cable. In fact, after attaining a peak at its appearance on the markets in the beginning of the 21st century at $55 per kilometre, the cable balloon finally burst and led to a real drop in the cable price to less than $10 per kilometre.  This drop in price was notably due to an extremely high production during this time which was finally balanced by an overall stability in demand from 2010. In any case, if the cable price continues at the current fairly stable rates then the Prysmian Group would be unprotected should a new drop in the market occur.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

How was the Prysmian Company created?

It was in 2005 that the Prysmian Company as we know it today was created. It was following the intervention of the Goldman Sachs group which bought the activities of Pirelli Cavi SpA, a subsidiary of the Pirelli group that year that this entity is born. It's important to know that more than 80% of the capital of the Prysmian Company is held by a large international public and that only 20% of this capital belongs to institutional investor shareholders.

Who are the major institutional investors in Prysmian's capital?

Part of the capital of the Prysmian Company belongs to private institutional investors. We know that BlackRock holds 5.725% of the shares, Fil Limited holds 3.323%, UBS 2.467%, Standard Life 2.157%, JP Morgan Chase & Co 2.170%, Jabre Capital Partners 2.097%, Lazard 2.078%, Schroder Investment Management Ltd owns 2.027% and the rest of the capital is distributed to the public.

Is it possible to trade Prysmian shares online?

Yes! It is possible to trade the Prysmian share price online using CFDs, contracts for difference. These contracts allow investors to bet on the rise or drop of the price of the value without having to buy these securities beforehand.

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