PUMA SE NPV (PUM) AI Stock Analysis

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PUMA SE NPV

(XETRA:PUM)

Rating:68Neutral

Price Target:

€25.00

▲(15.42%Upside)

PUMA SE shows robust financial health and steady cash flow, which are significant strengths. However, technical indicators and valuation suggest cautious optimism. The earnings call highlighted growth in specific segments but also revealed challenges in wholesale and profitability, tempering the overall score.

Positive Factors

Geographic Growth

PUMA has delivered steady growth across its key geographic regions, with growth led by EEMEA, Europe, Greater China, and Other APAC regions.

Product Strategy

The company is focused on reviving its Speedcat shoes series, with recent launches in Speedcat Ballet, hoping to replicate successes similar to Adidas' Samba.

Negative Factors

Earnings Outlook

Shares sank 23% only seven weeks ago when management warned on January prelims incorporated an adjusted 2027 EBIT margin of only 8.5% with no 2025 guide.

Macroeconomic Challenges

Macroeconomic challenges and currency headwinds have affected sales and lowered gross profit margin and the short-term liquidity of PUMA.

Profitability Concerns

Profitability: 4Q24 results evidenced a structural cost issue that the announced FY25 restructuring plan will only partially address.

PUMA SE NPV (PUM) vs. iShares MSCI Germany ETF (EWG)

Market Cap

$3.23B

Dividend Yield2.62%

Average Volume (3M)1.20M

Price to Earnings (P/E)16.7

Beta (1Y)1.00

Revenue Growth3.22%

EPS Growth-28.92%

CountryDE

Employees22,000

SectorConsumer Cyclical

Sector Strength63

IndustryApparel - Footwear & Accessories

Share Statistics

EPS (TTM)0.00

Shares Outstanding149,698,200

10 Day Avg. Volume1,672,785

30 Day Avg. Volume1,203,690

Financial Highlights & Ratios

PEG Ratio1.36

Price to Book (P/B)1.18

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$29.54

Price Target Upside36.38% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering19

PUMA SE NPV Business Overview & Revenue Model

Company DescriptionPUMA SE NPV (PUM) is a leading global sportswear manufacturer headquartered in Herzogenaurach, Germany. The company operates in the athletic and casual footwear, apparel, and accessories sectors. PUMA designs, develops, sells, and markets a wide range of products for sports enthusiasts and fashion-conscious consumers. Known for its innovative designs and collaborations with high-profile athletes and designers, PUMA has established itself as a significant player in the global sportswear market.

How the Company Makes MoneyPUMA SE generates revenue primarily through the sale of its sportswear products, including footwear, apparel, and accessories. The company's revenue model is centered on direct sales through its own retail stores and e-commerce platforms, as well as wholesale distribution to a network of third-party retailers. Key revenue streams include its performance and lifestyle product lines, with footwear being the largest segment. PUMA also benefits from strategic partnerships and collaborations with athletes, celebrities, and designers, which enhance brand visibility and consumer engagement. Additionally, PUMA has licensing agreements that allow third parties to produce and sell products using its brand, further contributing to its earnings.

PUMA SE NPV Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -4.82%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with strong growth in the Direct to Consumer segment and successful brand campaigns, contrasted by declines in wholesale sales, a drop in EBIT and net income, and challenges with inventory and working capital. The company is maintaining its outlook for 2025 despite uncertainties around US tariffs.

Q1-2025 Updates

Positive Updates

Direct to Consumer (DTC) Growth

PUMA's DTC business grew by 12%, led by e-commerce at 17.3%, with robust participation from all regions.

Successful Brand Campaign Launch

Launched 'Go Wild', the biggest brand campaign to date, focusing on running, which has received millions of views and strong visibility globally.

Product Innovation

Introduced new products such as the PUMA Deviate NITRO Elite 3 and PUMA FUTURE 8, contributing to positive brand momentum.

EMEA and Emerging Markets Growth

EMEA sales grew by 5.1% and emerging markets EEMEA and Latin America showed double-digit growth rates.

Negative Updates

Wholesale Sales Decline

Wholesale business was down by 4%, with significant declines in the US and China.

Decreased EBIT and Net Income

Adjusted EBIT decreased by 52% to EUR 76 million, and net income was significantly lower at EUR 0.5 million.

Gross Profit Margin Decrease

Gross profit margin decreased by 60 basis points to 47%, due to currency headwinds and absence of last year's positive inventory valuation effects.

Inventory and Working Capital Increase

Inventories increased by 21% currency adjusted, and working capital increased by 13%.

Company Guidance

During the Q1 2025 earnings call for PUMA SE, guidance was provided for several key metrics. Sales remained flat year-over-year on a currency-adjusted basis at EUR 2.1 billion, with direct-to-consumer (DTC) business growing by 12%, driven by a 17.3% increase in e-commerce, while wholesale declined by 3.6%. The adjusted EBIT decreased by 52% to EUR 76 million, impacted by a 60 basis points reduction in gross profit margin, primarily due to the absence of last year's positive inventory valuation effects. Operating expenses rose by 7.1%, influenced by growth in DTC business and higher marketing activity. Net income was reported at EUR 0.5 million. Inventory levels increased by 21% currency-adjusted, partly due to accelerated deliveries to the US ahead of new tariffs. PUMA maintained its full-year 2025 outlook, expecting low to mid-single-digit currency-adjusted sales growth and adjusted EBIT between EUR 520 million and EUR 600 million, excluding potential impacts from the new US tariffs. The company is also executing the nextlevel cost efficiency programme, targeting an EBIT contribution of up to EUR 100 million in 2025.

PUMA SE NPV Financial Statement Overview

Summary

PUMA SE demonstrates robust financial health with consistent revenue growth and efficient operational management. The balanced financial structure with manageable leverage and solid equity position supports its financial stability. Some pressures on profitability margins are noted, but cash flow generation remains strong.

Income Statement

Positive

PUMA SE has demonstrated strong revenue growth over the years, with a consistent increase from €5.23 billion in 2020 to €8.82 billion in 2024. The gross profit margin has remained robust, indicating efficient cost management, with 2024 showing a margin of 47.4%. However, net profit margins have experienced some fluctuations, with a decrease observed in 2024 to 3.2% from 3.5% in 2023, suggesting potential challenges in converting revenue into profit. EBIT and EBITDA margins have remained stable, reflecting good operational efficiency.

Balance Sheet

Positive

PUMA SE's balance sheet shows a moderate debt-to-equity ratio of 0.61 in 2024, reflecting a balanced approach to leveraging. The return on equity is somewhat low at 9.96%, indicating limited growth in shareholder value relative to equity. However, the equity ratio remains strong at 39.6%, demonstrating a solid capital structure with a good proportion of assets financed by equity.

Cash Flow

Positive

Cash flow analysis reveals steady growth in operating cash flow, with a notable increase from €653.6 million in 2023 to €694.8 million in 2024. The free cash flow has also increased, although the free cash flow to net income ratio suggests a need for improvement in turning profits into cash. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
8.82B	8.60B	8.47B	6.81B	5.23B
	Gross Profit
4.18B	3.99B	3.90B	3.26B	2.46B
	EBIT
622.00M	621.60M	640.60M	557.10M	209.20M
	EBITDA
977.60M	934.00M	952.30M	837.00M	499.50M
	Net Income Common Stockholders
281.60M	304.90M	353.50M	309.60M	123.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
537.00M	552.90M	484.70M	787.70M	685.20M
	Total Assets
7.14B	6.64B	6.77B	5.73B	4.68B
	Total Debt
1.72B	1.80B	1.31B	1.09B	931.70M
	Net Debt
1.35B	1.25B	843.30M	334.30M	275.80M
	Total Liabilities
4.31B	4.06B	4.23B	3.45B	2.92B
	Stockholders Equity
2.83B	2.55B	2.47B	2.21B	1.72B
Cash Flow		Free Cash Flow
431.80M	353.20M	154.70M	257.70M	270.50M
	Operating Cash Flow
694.80M	653.60M	418.30M	460.10M	421.50M
	Investing Cash Flow
-230.50M	-284.60M	-240.80M	-183.80M	-145.50M
	Financing Cash Flow
-697.80M	-277.10M	-476.40M	-164.00M	-129.20M

PUMA SE NPV Technical Analysis

Technical Analysis Sentiment

Negative

Last Price21.66

Price Trends

50DMA

21.80

Negative

100DMA

25.40

Negative

200DMA

32.94

Negative

Market Momentum

MACD

-0.07

Positive

RSI

42.51

Neutral

STOCH

16.64

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:PUM, the sentiment is Negative. The current price of 21.66 is below the 20-day moving average (MA) of 22.72, below the 50-day MA of 21.80, and below the 200-day MA of 32.94, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.51 is Neutral, neither overbought nor oversold. The STOCH value of 16.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:PUM.

PUMA SE NPV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TUI1	74 Outperform	€3.72B	6.86	92.28%	―	9.56%	4.49%
BOSS	71 Outperform	€2.73B	12.80	15.70%	3.56%	2.64%	-17.38%
ADS	70 Neutral	€37.75B	36.93	19.28%	0.95%	12.80%	662.68%
PUM	68 Neutral	$3.23B	16.66	7.25%	2.62%	3.22%	-28.92%
ZAL	65 Neutral	€7.84B	29.04	10.57%	―	6.14%	140.08%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
DHER	57 Neutral	€7.01B	―	-41.57%	―	23.67%	63.04%

* Consumer Cyclical Sector Average

Performance Comparison

DE:PUM

PUMA SE NPV

21.66

-24.06

-52.63%

DE:ZAL

Zalando

30.22

6.94

29.81%

DE:ADS

adidas AG

211.40

-16.20

-7.12%

DE:TUI1

TUI AG

7.20

0.10

1.41%

DE:DHER

Delivery Hero SE

23.70

-4.75

-16.70%

DE:BOSS

Hugo Boss

39.66

-5.78

-12.72%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.