Prada SpA (1913) AI Stock Analysis

• Market Cap: HK$117.71B
• Dividend Yield: 3.11%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.55
• Revenue Growth: 11.70%
• EPS Growth: 12.44%
• Country: HK
• Employees: 15,216
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 2,558,824,000
• 10 Day Avg. Volume: 1,305,472
• 30 Day Avg. Volume: 1,662,686
• PEG Ratio: 0.85
• Price to Book (P/B): 4.35
• Price to Sales (P/S): 3.52
• P/FCF Ratio: 16.05
• 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: HK$59.36
• Price Target Upside: 29.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.09
• Revenue Forecast (FY): HK$52.28B

• Rating: 67 Neutral
• Price Target: HK$48.00 ▲(4.35% Upside)

Prada SpA's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue and profit growth, and efficient cash flow management. The technical analysis indicates a bearish trend, which tempers the overall score. Valuation is fair, with a reasonable P/E ratio and an attractive dividend yield, providing a balanced investment proposition.

Positive Factors

Strong Cash Flow Generation

Prada's robust cash flow generation enhances its ability to invest in growth opportunities and sustain operations, ensuring long-term financial health.

Miu Miu Performance

The strong performance of Miu Miu indicates successful brand positioning and market demand, contributing significantly to Prada's overall growth.

Sustainability Initiatives

Prada's commitment to sustainability can enhance brand reputation and align with consumer preferences, supporting long-term brand loyalty.

Negative Factors

Prada Brand Challenges

Declining sales for the Prada brand highlight potential market saturation or competitive pressures, which could impact future growth.

Wholesale Decline

A decline in wholesale sales suggests challenges in distribution strategy and could affect revenue stability if not addressed.

Operating Leverage Concerns

Lack of operating leverage may limit profitability improvements, as increased expenses could offset revenue growth.

Prada SpA Business Overview & Revenue Model

Company Description

Prada SpA, founded in 1913 in Milan, Italy, is a prestigious luxury fashion house renowned for its high-end leather goods, fashion apparel, footwear, and accessories. The company operates within the luxury goods sector and is recognized for its innovative designs, craftsmanship, and the iconic brand identity it has cultivated over more than a century. Prada's core products include handbags, clothing, shoes, and eyewear, as well as fragrances under the Prada and Miu Miu labels. The brand is also engaged in the production of various fashion items and collaborations with artists and designers, further enhancing its market presence.

How the Company Makes Money

Prada generates revenue primarily through the retail and wholesale distribution of its luxury products. The company operates a global network of directly operated stores and a selective wholesale distribution strategy, which includes high-end department stores and specialty retailers. Key revenue streams include sales from their extensive range of leather goods, ready-to-wear collections, and accessories, with handbags being particularly significant in terms of profitability. Additionally, Prada has expanded its reach through e-commerce platforms, which have become increasingly important for sales growth. The brand also benefits from strategic partnerships, collaborations, and limited-edition releases that create exclusivity and drive consumer demand. Seasonal collections and marketing efforts, including high-profile advertising campaigns and participation in major fashion events, further contribute to brand visibility and revenue generation.

Prada SpA Financial Statement Overview

Summary

Prada SpA demonstrates strong financial performance with robust revenue and profit growth, high profitability margins, and efficient cash flow management. The balance sheet is well-balanced with moderate leverage, supporting financial stability.

Income Statement

Prada SpA has demonstrated strong revenue growth and profitability. The gross profit margin for 2024 is robust at 79.84%, indicating effective cost management. The net profit margin has improved to 15.44%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 23.56% and 37.08%, respectively. The revenue growth rate from 2023 to 2024 is 14.91%, showcasing a solid upward trajectory.

Balance Sheet

The balance sheet reflects solid equity and manageable debt levels. The debt-to-equity ratio is 0.63, suggesting prudent leverage. Return on Equity (ROE) is strong at 19.06%, indicating efficient use of shareholders' equity. The equity ratio of 51.45% shows a stable financial structure with significant assets funded by equity.

Cash Flow

Prada SpA exhibits strong cash flow generation. The free cash flow growth rate is notable at 201.21%, signifying substantial cash generation capability. The operating cash flow to net income ratio is 1.97, highlighting excellent cash conversion. The free cash flow to net income ratio is impressive at 1.42, indicating strong cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.62B	5.43B	4.73B	4.20B	3.37B	2.42B
Gross Profit	4.50B	4.34B	3.80B	3.31B	2.55B	1.74B
EBITDA	2.08B	2.01B	1.73B	1.42B	1.09B	648.73M
Net Income	841.29M	838.91M	671.03M	465.19M	294.25M	-54.14M
Balance Sheet
Total Assets	8.32B	8.55B	7.62B	7.38B	6.96B	6.53B
Cash, Cash Equivalents and Short-Term Investments	597.99M	1.01B	689.52M	1.09B	981.79M	448.57M
Total Debt	2.80B	2.79B	2.60B	2.67B	2.79B	2.89B
Total Liabilities	4.08B	4.13B	3.74B	3.88B	3.83B	3.68B
Stockholders Equity	4.22B	4.40B	3.85B	3.48B	3.11B	2.83B
Cash Flow
Free Cash Flow	994.43M	1.19B	395.61M	882.20M	923.90M	482.86M
Operating Cash Flow	1.54B	1.65B	1.16B	1.12B	1.14B	592.42M
Investing Cash Flow	-571.97M	-462.45M	-759.19M	-250.21M	-137.26M	-149.91M
Financing Cash Flow	-1.01B	-875.47M	-775.73M	-787.38M	-494.73M	-395.27M

Prada SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1913, the sentiment is Positive. The current price of 46 is above the 20-day moving average (MA) of 45.53, below the 50-day MA of 46.10, and below the 200-day MA of 48.41, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 56.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1913.

Prada SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	77 Outperform	$13.50B	12.28	9.54%	4.29%	10.89%	2.02%
0887	69 Neutral	$1.96B	7.16	5.10%	3.85%	6.82%	42.74%
6181	67 Neutral	HK$107.42B	30.34	59.03%	2.63%	226.65%	278.96%
1913	67 Neutral	HK$117.71B	16.52	19.96%	3.11%	11.70%	12.44%
1929	64 Neutral	$133.97B	22.93	23.74%	3.96%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$7.84B	6.64	9.13%	4.67%	-10.41%	67.25%

Prada SpA Corporate Events

Prada Completes Acquisition of Versace Group, Expanding Luxury Fashion Portfolio

Prada S.p.A. has successfully completed the acquisition of the Versace Group, with all conditions under the Share Purchase Agreement satisfied as of December 2, 2025. This strategic move is expected to enhance Prada’s market positioning within the luxury fashion sector. The acquisition was financed through a combination of a Euro 1,500 million facilities agreement and a Euro 200 million bilateral term loan, both of which include customary change of control provisions to protect lenders. This acquisition marks a significant expansion for Prada, potentially impacting its operations and stakeholder interests positively.

Prada Acquires Strategic Milan Property in Connected Transaction

Prada SpA has announced the acquisition of a property in Milan, Italy, for EUR 66,587,950 from Ludo Due S.r.l., a company controlled by a substantial shareholder of Prada. This transaction is classified as a connected transaction under the Listing Rules, requiring reporting and announcement but exempt from circular and independent shareholder approval. The property includes developed office buildings and a greenfield area, enhancing Prada’s strategic positioning in Milan’s real estate market.

Prada Group Reports 9% Revenue Growth Amidst Brand Performance Shifts

Prada Group announced its unaudited revenues for the nine months ending September 30, 2025, reporting a 9% year-over-year increase at constant exchange rates, reaching Euro 4,070 million. Retail net sales grew across all regions, with notable increases in the Middle East and Americas. While Prada’s retail net sales decreased by 2%, Miu Miu saw a significant 41% increase, highlighting a shift in brand performance within the group. This revenue growth underscores Prada’s strong market positioning and resilience in the competitive luxury fashion industry.

Prada S.p.A. Strengthens Governance with New Nomination Committee

Prada S.p.A. has approved the terms of reference for its Nomination Committee, which is responsible for appointing directors to the company’s board. The committee will consist of three to five members, primarily independent non-executive directors, ensuring they have the necessary expertise and independence. This move is aimed at enhancing the governance structure of the company, potentially impacting its operational efficiency and stakeholder confidence.

Prada S.p.A. Schedules Board Meeting to Review Quarterly Revenues

Prada S.p.A. has announced that its Board of Directors will meet on October 23, 2025, to approve the unaudited quarterly revenues for the nine months ending September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.