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Global Fashion Group S.A. (DE:GFG)
:GFG

Global Fashion Group (GFG) AI Stock Analysis

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Global Fashion Group

(XETRA:GFG)

Rating:48Neutral
Price Target:
€0.50
▲(51.52%Upside)
The stock score reflects significant financial performance challenges, notably negative profitability and cash flow issues. Despite technical indicators suggesting bullish momentum, the poor valuation metrics and financial risk weigh heavily on the overall assessment.

Global Fashion Group (GFG) vs. iShares MSCI Germany ETF (EWG)

Global Fashion Group Business Overview & Revenue Model

Company DescriptionGlobal Fashion Group (GFG) is a leading online fashion and lifestyle destination in growth markets, offering a wide assortment of international, local, and own-brand products. Operating in regions such as Latin America, the Commonwealth of Independent States, Southeast Asia, and Australia/New Zealand, GFG caters to a diverse customer base with a focus on providing access to the latest fashion trends and a unique shopping experience. The company employs a data-driven approach to market insights, enabling it to effectively engage with its audience through personalized marketing strategies and a dynamic product offering.
How the Company Makes MoneyGlobal Fashion Group primarily makes money through the sale of fashion and lifestyle products via its e-commerce platforms. Its revenue model is driven by direct-to-consumer sales, where customers purchase products from GFG's online stores. Key revenue streams include the sales of clothing, footwear, accessories, and beauty products. Moreover, GFG monetizes its platform through advertising and brand partnerships, leveraging its significant reach and consumer insights to offer value-added services to brands looking to expand their presence in the company's operating regions. Additionally, GFG benefits from economies of scale and operational efficiencies in logistics and supply chain management, which contribute to its overall profitability.

Global Fashion Group Financial Statement Overview

Summary
Global Fashion Group faces significant financial challenges with declining revenue and negative margins. Though there is some improvement in debt management, high debt levels and negative cash flows pose substantial risks.
Income Statement
35
Negative
The company has faced declining revenue over the past few years, with a significant drop from 2021 to 2024. Gross profit margin has been decreasing, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have consistently been negative, indicating operational inefficiency. However, the net loss has narrowed slightly in the recent year, suggesting some improvement in cost control.
Balance Sheet
45
Neutral
The balance sheet reveals a stable equity ratio around 33.5% in 2024, indicating moderate financial stability. However, the debt-to-equity ratio is relatively high due to decreased equity, increasing the risk profile. Despite these challenges, the company has managed to reduce its total debt significantly from 2020 to 2024, which is a positive sign.
Cash Flow
40
Negative
The cash flow statement shows negative operating cash flow in the most recent year, reflecting challenges in generating cash from operations. Free cash flow has been negative, though there has been a slight improvement in reduction of negative free cash flow. The operating cash flow to net income ratio is unfavorable, indicating that the company struggles to convert its income into cash effectively.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
753.20M743.50M838.00M1.10B1.56B1.36B
Gross Profit
327.70M333.80M352.90M468.90M711.50M586.20M
EBIT
-99.55M-79.20M-120.00M-137.40M-102.70M-91.00M
EBITDA
-54.81M-18.60M-86.20M-62.70M-38.00M-27.50M
Net Income Common Stockholders
-154.65M-82.50M-178.40M-178.40M-124.80M-112.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
307.40M210.60M387.00M550.00M634.50M366.10M
Total Assets
748.40M637.50M862.00M1.17B1.54B1.17B
Total Debt
218.70M103.00M239.40M343.00M497.20M123.90M
Net Debt
-88.70M-107.60M13.50M19.50M96.70M-242.20M
Total Liabilities
508.00M426.30M566.30M695.10M971.40M553.70M
Stockholders Equity
241.60M213.70M272.30M475.50M569.70M615.20M
Cash FlowFree Cash Flow
-20.60M-44.60M-76.40M25.00M-107.80M-19.20M
Operating Cash Flow
-17.00M-15.00M-47.50M92.60M-51.20M30.30M
Investing Cash Flow
207.80M130.10M48.90M-38.00M-293.10M-33.50M
Financing Cash Flow
-110.40M-130.60M-99.50M-121.90M370.10M106.50M

Global Fashion Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.33
Price Trends
50DMA
0.28
Positive
100DMA
0.28
Positive
200DMA
0.26
Positive
Market Momentum
MACD
0.02
Negative
RSI
71.72
Negative
STOCH
78.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:GFG, the sentiment is Positive. The current price of 0.33 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.28, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 71.72 is Negative, neither overbought nor oversold. The STOCH value of 78.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:GFG.

Global Fashion Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DETPG
75
Outperform
€213.36M6.2031.97%21.39%14.07%
DEZAL
65
Neutral
€7.67B28.4410.57%6.14%140.08%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
DEECK
55
Neutral
€53.95M-4.51%1.03%0.84%-764.16%
DEWEW
49
Neutral
€161.27M-0.89%2.05%97.89%
DEGFG
48
Neutral
€79.05M-34.04%-11.28%54.27%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:GFG
Global Fashion Group
0.36
0.14
63.64%
DE:ZAL
Zalando
29.59
7.05
31.28%
DE:WEW
Westwing Group AG
7.96
-0.24
-2.93%
DE:ECK
Ludwig Beck am Rathauseck Textilhaus Feldmeier
14.30
-7.10
-33.18%
DE:TPG
fashionette AG
10.35
0.87
9.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.