Puig Brands, S.A. (ES:PUIG)
BME:PUIG
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Puig Brands, S.A.
(BME:PUIG)
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Rating:70Outperform
Price Target:
€17.50
▼(-0.79% Downside)
Action:Reiterated
Date:06/01/26
The score is driven primarily by solid financial performance (growth, profitability, improving free cash flow) and a constructive earnings outlook despite FX/tariff and segment-margin headwinds. Valuation is reasonable, but the overall result is held back by weak technical momentum with the stock trading below key moving averages and a negative MACD.
Positive Factors
Revenue Growth & Market Position
Sustained multi‑year top‑line growth to a record >€5bn demonstrates strong brand portfolio execution and market share defense in prestige beauty. Consistent LFL outperformance versus the premium beauty market implies durable revenue engines, supporting long‑term scale advantages.
Negative Factors
History of Elevated Leverage
Prior episodes of aggressive leverage show the capital structure can swing materially under stress or acquisitive phases. That path raises tail risk: if growth or cash generation weakens, management may face pressure to cut dividends or postpone investments to restore conservative gearing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Market Position
Sustained multi‑year top‑line growth to a record >€5bn demonstrates strong brand portfolio execution and market share defense in prestige beauty. Consistent LFL outperformance versus the premium beauty market implies durable revenue engines, supporting long‑term scale advantages.
Read all positive factors
Puig Brands, S.A. (PUIG) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€9.12B
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)15.3
Beta (1Y)0.50
Revenue Growth5.27%
EPS Growth11.89%
CountryES
Employees10,685
SectorConsumer Defensive
Sector Strength42
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)1.05
Shares Outstanding174,819,670
10 Day Avg. Volume1,184,934
30 Day Avg. Volume1,290,930
Financial Highlights & Ratios
PEG Ratio1.98
Price to Book (P/B)2.15
Price to Sales (P/S)1.66
P/FCF Ratio11.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€20.40Price Target Upside15.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.09
Revenue Forecast (FY)€5.21B
Puig Brands, S.A. Business Overview & Revenue Model
Company Description
Puig Brands S.A. functions as a holding entity primarily involved in the production and distribution of perfumes, apparel, and cosmetic items. Its operations are organized into three principal divisions: Fragrance and Fashion, Make-up, and Skincar...
How the Company Makes Money
Puig primarily makes money by selling prestige beauty and fashion products worldwide. Its main revenue stream is the sale of fragrances (often positioned as premium/designer scents), complemented by cosmetics and skincare, and a smaller contributi...
Puig Brands, S.A. Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 04, 2026
Earnings Call Sentiment Positive
The call conveyed a predominately positive operational and financial story: record revenues above EUR 5 billion, margin expansion, strong adjusted EBITDA and cash generation, standout performance in makeup and Asia Pacific, and a strengthened balance sheet. However, management was transparent about notable near‑term headwinds (foreign exchange, tariffs, Argentina hyperinflation), some margin pressure in specific segments (Fragrance & Fashion and Skincare), and associate/brand‑specific challenges. On balance, the positive execution, broad‑based growth, improved profitability and balance sheet flexibility outweigh the headwinds, though FX and select integration/investment costs remain items to monitor for 2026.Positive Updates
Record Revenue and Top‑End Like‑for‑Like Growth
Net revenues surpassed EUR 5.0 billion for FY2025, representing +7.8% like‑for‑like growth and +5.3% reported growth — at the top end of guidance (6%–8% LFL). Q4 net revenues reached EUR 1.45 billion with 9.8% like‑for‑like growth.
Negative Updates
Foreign Exchange and Tariff Headwinds
FX was a meaningful negative impact: ~‑2.6% on FY like‑for‑like growth and ~‑3.6% in Q4 (company expects similar FX pressure into Q1 2026). U.S. tariffs and FX effects are cited as ongoing margin/headwind considerations into 2026.
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Q4-2025 Updates
Positive
Negative
Record Revenue and Top‑End Like‑for‑Like Growth
Net revenues surpassed EUR 5.0 billion for FY2025, representing +7.8% like‑for‑like growth and +5.3% reported growth — at the top end of guidance (6%–8% LFL). Q4 net revenues reached EUR 1.45 billion with 9.8% like‑for‑like growth.
Read all positive updates
Company Guidance
Puig’s 2026 guidance framework signals continued like‑for‑like outperformance versus the premium beauty market (no firm revenue target), while flagging a notable FX headwind (Q4‑2025 FX −3.6% and a similar ~3.6% drag expected in Q1 2026) and a tough Q1 fragrance comp; adjusted EBITDA margins are expected to remain broadly stable around the 20.7% level achieved in 2025 (management had previously flagged ~+20 bps potential), with medium‑term upside from mix and operational discipline despite tariffs and FX, and continued healthy brand investment. Capital and cash priorities are unchanged: target net debt/adjusted EBITDA ≤2x (year‑end leverage 0.7x; net debt €716m), a 40% dividend payout policy (2025 dividend proposed ≈€237m or €0.42/share subject to AGM), selective M&A, and planned cash outflows including €351m of minority‑stake maturities in H1‑2026; 2025 free cash‑flow conversion was 64% and CapEx ran at ~4% of sales.Puig Brands, S.A. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
66
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.04B | 4.79B | 4.30B | 3.62B | 2.59B |
| Gross Profit | 3.55B | 3.59B | 3.22B | 2.55B | 1.78B |
| EBITDA | 1.05B | 979.81M | 876.69M | 663.21M | 500.81M |
| Net Income | 593.70M | 530.65M | 465.21M | 399.49M | 221.04M |
Balance Sheet | |||||
| Total Assets | 8.55B | 8.60B | 7.71B | 7.12B | 5.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 884.43M | 852.90M | 710.05M | 692.66M |
| Total Debt | 2.08B | 2.05B | 2.46B | 2.09B | 1.18B |
| Total Liabilities | 4.64B | 5.07B | 6.75B | 6.16B | 4.04B |
| Stockholders Equity | 3.90B | 3.53B | 949.91M | 944.85M | 1.04B |
Cash Flow | |||||
| Free Cash Flow | 757.49M | 548.77M | 378.56M | 268.15M | 433.81M |
| Operating Cash Flow | 902.60M | 739.69M | 556.47M | 419.73M | 511.02M |
| Investing Cash Flow | -89.64M | -1.24B | -286.65M | -1.05B | -144.99M |
| Financing Cash Flow | -653.54M | 538.35M | -98.01M | 644.54M | -342.25M |
Puig Brands, S.A. Technical Analysis
Positive
17.64
Price Trends
16.67
Negative
16.32
Negative
15.36
Positive
Market Momentum
-0.08
Negative
50.10
Neutral
27.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:PUIG, the sentiment is Positive. The current price of 17.64 is above the 20-day moving average (MA) of 15.81, above the 50-day MA of 16.67, and above the 200-day MA of 15.36, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 27.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:PUIG.
Puig Brands, S.A. Peers Comparison
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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.