Prada SpA (1913) AI Stock Analysis

• Market Cap: HK$105.68B
• Dividend Yield: 3.53%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.51
• Revenue Growth: 11.70%
• EPS Growth: 12.44%
• Country: HK
• Employees: 15,216
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Luxury Goods
• EPS (TTM): 1.37
• Shares Outstanding: 2,558,824,000
• 10 Day Avg. Volume: 5,844,337
• 30 Day Avg. Volume: 2,765,569
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$62.24
• Price Target Upside: 50.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 66 Neutral
• Price Target: HK$46.00 ▲(11.38% Upside)

Prada SpA's overall stock score is driven by strong financial performance and a positive earnings call, which highlight solid revenue and profit growth. However, the stock's weak technical indicators, reflecting bearish market sentiment, weigh down the score. The valuation metrics suggest potential for growth, but the impact of external challenges and retail sales decline in the Prada brand remains a concern.

Positive Factors

Brand Investment

Prada reaffirms its commitment to brand investments for market share gains and above-industry performance.

Profitability

Cost controls and operating leverage are expected to yield slightly higher EBIT margins and teens profit growth.

Strategic Focus

Prada's strategic focus on retail efficiency, global presence, and the potential for Miu Miu to double sales in the medium term should position the company well among luxury plays.

Negative Factors

Acquisition Risks

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.

Market Challenges

Changing trade policies and volatile market conditions could heighten industry challenges.

Tourism Impact

Tourism headwinds in key markets impacted sales, with European sales affected by fewer US tourists and moderated Japanese sales due to a decline in tourism flows.

Prada SpA Business Overview & Revenue Model

Company Description

Prada SpA, founded in 1913, is a leading global luxury fashion company based in Italy. The company operates in the high-end fashion sector, offering a wide range of premium products including leather goods, handbags, footwear, apparel, accessories, eyewear, and fragrances. Prada is renowned for its innovative design, exceptional craftsmanship, and distinctive style, catering to a discerning clientele worldwide through a network of boutiques, department stores, and online platforms.

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 presents a compelling financial profile with strong revenue and profit growth, robust 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	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: 41.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 41.3 is below the 20-day moving average (MA) of 47.40, below the 50-day MA of 48.62, and below the 200-day MA of 54.28, indicating a bearish trend. The MACD of -1.87 indicates Positive momentum. The RSI at 24.45 is Positive, neither overbought nor oversold. The STOCH value of 16.61 is Positive, 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
0590	76 Outperform	HK$12.33B	11.21	8.44%	5.91%	-12.95%	-37.76%
1929	76 Outperform	HK$129.43B	22.15	22.73%	3.79%	-17.53%	-8.90%
0116	75 Outperform	HK$5.73B	7.16	6.25%	10.71%	-15.34%	-20.36%
1913	66 Neutral	HK$105.68B	14.84	19.96%	3.53%	11.70%	12.44%
0887	65 Neutral	HK$2.83B	10.29	4.99%	2.62%	8.44%	-14.06%
Sector *	61 Neutral	$16.55B	10.12	-9.03%	3.33%	1.44%	-22.51%
6181	60 Neutral	HK$125.19B	70.60	54.70%	0.94%	163.00%	243.31%

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.

Prada S.p.A. Announces Upcoming Board Meeting for Interim Results

Prada S.p.A. has scheduled a board meeting on July 30, 2025, to discuss and approve the unaudited interim results for the first half of the year. This announcement is significant as it provides insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and market 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.