Prada SpA (1913) AI Stock Analysis

• Market Cap: $125.13B
• Dividend Yield: 2.93%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.55
• Revenue Growth: 14.60%
• EPS Growth: 24.66%
• Country: HK
• Employees: 15,216
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 2,558,824,000
• 10 Day Avg. Volume: 1,937,683
• 30 Day Avg. Volume: 1,823,991
• PEG Ratio: 0.46
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.30
• 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: $69.79
• Price Target Upside: 42.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: HK$57.00 ▲(16.56%Upside)

Prada SpA's overall stock score reflects strong financial performance and a positive earnings outlook, counterbalanced by mixed technical indicators and market challenges. The company's strategic focus on brand expansion and innovation supports a cautiously optimistic view, though valuation remains neutral.

Positive Factors

Acquisition Strategy

Prada is buying Versace at depressed profitability levels at a slightly lower price than expected, which could be beneficial for the overall acquisition strategy.

Brand Synergy

Versace has distinctive brand aesthetics that are potentially complementary to Prada, enjoys strong brand awareness and should be able to leverage Prada’s industrial, retail and operating expertise to turn the business around.

Market Position

Prada brand is firmly in the market share winners’ camp and enjoys brand equity and credentials across multiple categories that few rivals can match.

Retail Productivity

Retail productivity gains should drive attractive EBIT margin expansion.

Negative Factors

Earnings Risk

A potential acquisition of Versace would be dilutive to group’s margins and would increase the group's earnings risk profile.

Financial Impact of Acquisition

Versace is a turnaround story that adds risk and complexity to a compelling organic growth story, dilutes the Prada Group’s margin/ROIC, and dilutes the group’s sales growth potential.

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 products, which include clothing, leather goods, footwear, and accessories. The company's key revenue streams consist of retail sales from its standalone boutiques and department store concessions, as well as wholesale distribution to authorized retailers. Prada also capitalizes on its brand prestige and innovation in design to command premium pricing for its products. Additionally, the company benefits from strategic marketing and collaborations with influential designers and celebrities, which enhance its brand visibility and appeal. The company's earnings are further supported by its global retail network, which spans across major markets in Europe, Asia, and the Americas, allowing it to tap into a diverse and affluent customer base.

Prada SpA Financial Statement Overview

Summary

Prada SpA displays strong financial health with robust revenue and profit growth, healthy profitability margins, and efficient cash flow management. The balance sheet shows moderate leverage, supporting financial stability. Key metrics include a solid revenue growth rate, high gross and net profit margins, and impressive free cash flow growth.

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

Prada SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.90
• 50DMA: Negative
• 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 Negative. The current price of 48.9 is below the 20-day moving average (MA) of 49.31, below the 50-day MA of 49.27, and below the 200-day MA of 54.80, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1913.

Prada SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1913	75 Outperform	$125.13B	17.54	20.60%	2.93%	14.60%	24.66%
Sector *	61 Neutral	AU$2.79B	25.61	5.01%	5.45%	2.63%	-29.95%
CHOWF		$725.75M	6.42	6.25%	9.39%	―	―
CJEWF		$16.24B	21.45	22.73%	3.15%	―	―
EPRJF		$490.03M	12.24	4.99%	0.96%	―	―
LKFLF		$1.44B	8.27	9.79%	12.46%	―	―
6181	66 Neutral	HK$149.11B	84.09	54.70%	0.80%	163.00%	243.31%

Prada SpA Corporate Events

Prada Reports Strong Revenue Growth in Q1 2025

Prada S.p.A. announced a 12.5% increase in net revenues for the first quarter of 2025 compared to the same period in 2024, reaching 1,341.3 million Euros at constant exchange rates. Retail net sales rose by 13.0%, with the Miu Miu brand experiencing a significant 60.2% increase. Geographically, the Middle East showed the most substantial growth at 26.5%, followed by Japan at 18.0%. This robust performance highlights Prada’s strong market positioning and growth potential in the luxury fashion sector.

Prada S.p.A. Announces AGM Resolutions and New Auditor Appointment

Prada S.p.A. announced the successful passing of key resolutions during its Annual General Meeting held on April 30, 2025. The company approved its financial statements showing a net income of €849.7 million for 2024, declared a final dividend of €0.164 per share, and appointed KPMG S.p.A. as its external auditor for the next three years. These decisions reflect Prada’s robust financial health and strategic focus on maintaining transparency and shareholder value.

Prada Updates Final Dividend for 2024

Prada S.p.A. announced an update to its final dividend for the year ended December 31, 2024, with the dividend amount set at EUR 0.164 per share, equivalent to HKD 1.431802 per share based on the updated exchange rate. The dividend will be paid net of a 26% Italian withholding tax, and shareholders may seek a refund for any excess tax paid. This announcement reflects Prada’s commitment to returning value to its shareholders and may impact the company’s financial positioning and investor relations.

Prada S.p.A. Schedules Board Meeting to Approve Q1 2025 Revenues

Prada S.p.A. has announced that its Board of Directors will convene on April 30, 2025, to approve the release of the unaudited quarterly revenues for the first quarter of 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder confidence.

Prada SpA Acquires Versace for $1.375 Billion

Prada SpA has announced a significant acquisition of Versace HoldCo, valued at approximately US$1.375 billion, which will make Versace a subsidiary of Prada. This strategic move is expected to enhance Prada’s market positioning in the luxury fashion sector, potentially increasing its competitive edge and offering new growth opportunities.

Prada S.p.A. Announces Online Annual General Meeting and Key Resolutions

Prada S.p.A. has announced its Annual General Meeting scheduled for April 30, 2025, which will be conducted online in accordance with Italian legislation. Key resolutions include the approval of the company’s financial statements, a dividend distribution of Euro 419.6 million, and the appointment of KPMG S.p.A. as the external auditor for the next three years. This meeting underscores Prada’s commitment to transparency and governance, potentially impacting shareholder confidence and market perception.