Prada SpA (1913) AI Stock Analysis

• Market Cap: $119.55B
• Dividend Yield: 3.06%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.49
• Revenue Growth: 11.70%
• EPS Growth: 12.44%
• Country: HK
• Employees: 15,216
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 1.38
• Shares Outstanding: 2,558,824,000
• 10 Day Avg. Volume: 1,790,005
• 30 Day Avg. Volume: 2,696,056
• 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: 1.21
• Enterprise Value/Revenue: 25.80
• Enterprise Value/Gross Profit: 32.26
• Enterprise Value/Ebitda: 69.60
• 1Y Price Target: $57.44
• Price Target Upside: 22.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: HK$53.00 ▲(13.44% Upside)

Prada SpA's strong financial performance and solid earnings call results are the most significant factors contributing to the score. The company's robust profitability and cash flow generation, along with a reasonable valuation, support a positive outlook. However, technical analysis indicates mixed short-term trends, and challenges in certain segments highlight areas for improvement.

Positive Factors

Strong Cash Flow Generation

Prada's robust cash flow generation enhances its ability to reinvest in growth opportunities, maintain financial stability, and support strategic initiatives, ensuring long-term business sustainability.

High Profit Margins

High profit margins indicate effective cost management and strong pricing power, which are crucial for maintaining competitive advantage and profitability in the luxury goods sector.

Miu Miu's Strong Performance

Miu Miu's strong sales growth demonstrates successful brand positioning and market demand, contributing significantly to Prada's overall revenue and enhancing its market presence.

Negative Factors

Prada Brand Challenges

Declining sales for the Prada brand highlight challenges in adapting to market shifts and consumer preferences, potentially affecting brand strength and market share if not addressed.

Wholesale Segment Decline

A decline in the wholesale segment suggests potential distribution challenges and reliance on retail channels, which could impact revenue diversification and growth stability.

Operating Leverage Concerns

Lack of operating leverage despite revenue growth indicates rising costs and inefficiencies, which could pressure margins and limit profitability improvements over time.

Prada SpA Business Overview & Revenue Model

Company Description

Prada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and Africa. It offers its products under the Prada, Miu Miu, Church's, and Car Shoe brands. The company also provides eyewear and fragrances under licensing agreements, as well as operates in the food sector under the Marchesi 1824 brand. As of December 31, 2021, it had 635 directly operated stores. The company also sells its products through a network of approximately 26 franchise operated stores; multi-brand stores; luxury department stores; independent retailers; and online retailers. In addition, it engages in the event management and real estate business, as well as operates duty-free stores. The company was founded in 1913 and is headquartered in Milan, Italy. Prada S.p.A. is a subsidiary of Prada Holding S.p.A.

How the Company Makes Money

Prada SpA generates revenue primarily through the sale of its luxury fashion products. The company's key revenue streams include the retail and wholesale distribution of its collections, with a significant portion of sales coming from leather goods and accessories. Prada's retail operations are bolstered by its extensive network of directly operated stores located in prestigious shopping locations around the globe. Additionally, the company leverages partnerships with high-end department stores and e-commerce platforms to reach a broader audience. Licensing agreements for eyewear and fragrances also contribute to its earnings. Factors such as brand prestige, innovation in design, and strategic marketing initiatives play crucial roles in maintaining and enhancing Prada's revenue generation.

Prada SpA Financial Statement Overview

Summary

Prada SpA demonstrates strong financial performance with robust revenue growth and profitability margins. The balance sheet is well-balanced with moderate leverage, and cash flow generation is impressive. However, careful monitoring of leverage and maintaining growth momentum are essential for sustained success.

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: 46.72
• 50DMA: Positive
• 100DMA: Negative
• 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 46.72 is above the 20-day moving average (MA) of 46.38, above the 50-day MA of 44.27, and below the 200-day MA of 52.05, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 61.47 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
1913	78 Outperform	$119.55B	16.85	19.96%	3.06%	11.70%	12.44%
0590	76 Outperform	$14.53B	13.10	8.44%	4.45%	-12.95%	-37.76%
1929	76 Outperform	$148.67B	25.56	22.73%	3.45%	-17.53%	-8.90%
0116	75 Outperform	$9.74B	8.26	9.13%	3.92%	-10.41%	67.25%
0887	69 Neutral	$2.18B	7.82	5.10%	3.33%	6.82%	42.74%
6181	64 Neutral	HK$116.90B	34.27	59.03%	1.00%	226.65%	278.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Prada SpA Corporate Events

Prada Group Reports Strong Financial Growth in First Half of 2025

Prada Group reported a 9% increase in net revenues, reaching €2,740 million for the first half of 2025, with a notable 10% rise in retail net sales. While the Prada brand saw a 2% decrease, Miu Miu experienced a significant 49% growth. Sales increased across all regions, with the Middle East leading at 26%. The Group achieved an EBIT adjusted of €619 million and a net income of €386 million, reflecting strong financial performance and a net financial surplus of €352 million.

The most recent analyst rating on (HK:1913) stock is a Hold with a HK$59.80 price target. To see the full list of analyst forecasts on Prada SpA stock, see the HK:1913 Stock Forecast page.

Prada S.p.A. Announces Board Changes with New Appointment

Prada S.p.A. has announced a change in its board of directors, with the resignation of Ms. Marina Sylvia Caprotti as an Independent Non-Executive Director, effective July 30, 2025, to focus on other business commitments. In her place, Ms. Ilaria Resta has been appointed, bringing extensive experience from her previous roles at Audemars Piguet and Procter & Gamble. This change is expected to bring fresh perspectives to Prada’s board, potentially influencing its strategic direction and strengthening its industry positioning.

The most recent analyst rating on (HK:1913) stock is a Hold with a HK$59.80 price target. To see the full list of analyst forecasts on Prada SpA stock, see the HK:1913 Stock Forecast page.

Prada S.p.A. Announces Board of Directors Changes

Prada S.p.A. announced changes to its Board of Directors, with Ms. Ilaria Resta appointed as an Independent Non-Executive Director and Ms. Marina Sylvia Caprotti resigning from the same position, effective July 30, 2025. These changes reflect Prada’s ongoing efforts to strengthen its governance and strategic oversight, potentially impacting its operational and market strategies.

The most recent analyst rating on (HK:1913) stock is a Buy with a HK$70.00 price target. To see the full list of analyst forecasts on Prada SpA stock, see the HK:1913 Stock Forecast page.