Puig Brands, S.A. (PUIG) AI Stock Analysis

• Market Cap: €8.07B
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: ES
• Employees: 10,685
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Personal Products & Services
• EPS (TTM): 0.44
• Shares Outstanding: 174,819,670
• 10 Day Avg. Volume: 1,042,347
• 30 Day Avg. Volume: 1,103,942
• PEG Ratio: 0.93
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 17.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €18.31
• Price Target Upside: 37.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: €18.00 ▲(34.73% Upside)

Puig Brands, S.A. demonstrates strong financial performance, which is the most significant factor contributing to the overall score. The company's stable balance sheet and robust cash flow generation support its healthy financial position. Technical analysis indicates a neutral to slightly bearish trend, while the valuation is fair, offering a reasonable balance between growth and income potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a successful market strategy and product demand, strengthening long-term financial stability and market position.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment capacity, ensuring sustainable growth and resilience against market fluctuations.

Balance Sheet Health

A stable balance sheet with manageable leverage enhances financial stability, allowing for strategic investments and cushioning against economic downturns.

Negative Factors

Leverage Management

While the balance sheet is stable, better management of leverage is necessary to reduce financial risk and improve long-term capital efficiency.

Operational Costs

Rising operational costs could pressure margins, potentially impacting profitability if not managed effectively over the long term.

Liabilities

High liabilities relative to assets may constrain financial flexibility, posing risks to long-term financial health if not addressed.

Puig Brands, S.A. Business Overview & Revenue Model

Company Description

Puig Brands SA is a holding company, which engages in the manufacturing and sale of fragrance, fashion, and beauty products. It operates through the following segments: Fragrance and Fashion, Make-up, and Skincare. The Fragrance and Fashion segment focuses on the creation, marketing, and sale of fragrances as well as clothing, accessories, and other fashion-related items. The Make-up segment offers cosmetic products including foundations, concealers, lipsticks, lip glosses, eyeliners, blushes, mascaras, and eyeshadows. The Skincare segment includes cleansers, toners, moisturizers, serums, body care, exfoliators, acne, oil correctors, facial masks, and sun care products. The company was founded by Antonio Puig Castelló in 1914 and is headquartered in Barcelona, Spain.

How the Company Makes Money

Puig generates revenue primarily through the sale of its fragrance and beauty products, which are distributed through a network of retail partners and direct-to-consumer channels worldwide. The company's key revenue streams include the sales of perfumes, cosmetics, and personal care products under its own brands and through licenses with other global brands. In addition to product sales, Puig benefits from strategic partnerships and licensing agreements that allow it to leverage brand equity and expand its market reach. The company's strong emphasis on branding and innovation, along with its investment in marketing and distribution, significantly contributes to its earnings. Furthermore, Puig's involvement in the fashion sector, through the management and commercialization of renowned fashion labels, also plays a vital role in its overall revenue model.

Puig Brands, S.A. Financial Statement Overview

Summary

Puig Brands, S.A. exhibits strong financial performance with consistent revenue and profit growth. The company's balance sheet is stable, though leverage could be better managed. Cash flow generation is robust, supporting its net income comfortably. Overall, Puig Brands is in a healthy financial position, with positive growth and profitability trends.

Income Statement

Puig Brands, S.A. has demonstrated strong revenue growth over recent years, with a substantial increase in total revenue from 2021 to 2024. The gross profit margin in 2024 is robust, indicating effective cost management. While the net profit margin has improved, the EBIT margin has slightly decreased, suggesting increased operational costs. Overall, the company shows healthy profitability and growth trends.

Balance Sheet

Puig Brands, S.A. maintains a healthy balance sheet with a manageable debt-to-equity ratio. The increase in stockholders' equity indicates strong financial health and stability. However, the equity ratio shows room for improvement, with liabilities still comprising a significant portion of total assets. The company's financial position is solid, but attention to leverage is necessary.

Cash Flow

The company has shown remarkable growth in operating cash flow, supporting its net income effectively. Free cash flow has also grown, indicating efficient capital expenditure management. The operating cash flow to net income ratio suggests strong cash generation capabilities. Overall, Puig Brands is maintaining a positive cash flow trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.92B	4.79B	4.30B	3.62B	2.59B
Gross Profit	3.68B	3.59B	3.22B	2.55B	1.78B
EBITDA	898.24M	979.81M	876.69M	663.21M	500.81M
Net Income	651.83M	530.65M	465.21M	399.49M	221.04M
Balance Sheet
Total Assets	8.04B	8.60B	7.71B	7.12B	5.09B
Cash, Cash Equivalents and Short-Term Investments	283.32M	884.43M	852.90M	710.05M	692.66M
Total Debt	1.80B	1.73B	2.21B	1.88B	1.01B
Total Liabilities	4.36B	5.07B	6.75B	6.16B	4.04B
Stockholders Equity	3.67B	3.53B	949.91M	944.85M	1.04B
Cash Flow
Free Cash Flow	689.34M	548.77M	378.56M	268.15M	433.81M
Operating Cash Flow	884.68M	739.69M	556.47M	419.73M	511.02M
Investing Cash Flow	-428.55M	-1.24B	-286.65M	-1.05B	-144.99M
Financing Cash Flow	-1.19B	538.35M	-98.01M	644.54M	-342.25M

Puig Brands, S.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:PUIG, the sentiment is Negative. The current price of 13.36 is below the 20-day moving average (MA) of 14.14, below the 50-day MA of 15.22, and below the 200-day MA of 16.44, indicating a bearish trend. The MACD of -0.43 indicates Negative momentum. The RSI at 30.95 is Neutral, neither overbought nor oversold. The STOCH value of 55.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:PUIG.

Puig Brands, S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUIG	73 Outperform	€8.07B	12.37	19.77%	―	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HBX	54 Neutral	€1.84B	―	―	―	―	―