Sanlorenzo stands out not just for its brand, but for the quality of its financials, which in my view justify a bullish stance on the stock.
Over the last few years, the company has delivered double-digit revenue growth, with annual sales now well above €800 million and a clear trajectory toward the €1 billion mark. What matters even more is profitability: EBITDA margins have consistently moved into the mid- to high-teens, a strong result for a company operating in a highly customized manufacturing business.
The order backlog is another key strength. Sanlorenzo typically reports a backlog covering more than one year of production, providing strong revenue visibility and reducing short-term cyclicality risk. This is not a company selling hope — it is selling yachts already contracted.
Cash generation is solid. Operating cash flow remains positive even during periods of heavy investment, while net debt is under control. In some years, leverage has remained close to 1x EBITDA or below, giving management flexibility to invest, pay dividends and absorb potential macro slowdowns.
Return on capital is also attractive. ROIC levels comfortably above the cost of capital indicate that growth is value-accretive, not just growth for the sake of size. This is a crucial point in luxury manufacturing.
Finally, valuation. Despite its quality and growth profile, Sanlorenzo has often traded at lower multiples than global luxury peers, especially when adjusted for balance sheet strength and backlog visibility. For a company combining premium pricing, strong margins and disciplined execution, this creates an appealing risk-reward profile.
In my view, Sanlorenzo is not a cyclical trade — it is a high-quality luxury compounder backed by real numbers.
👉 Do you think the market is still underestimating Sanlorenzo’s ability to compound earnings over the next cycle?
