Prada SpA (1913) AI Stock Analysis

• Market Cap: HK$111.77B
• Dividend Yield: 3.17%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.56
• 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: 1,611,685
• 30 Day Avg. Volume: 1,655,542
• 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$61.33
• Price Target Upside: 37.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.34
• Revenue Forecast (FY): HK$6.42B

• Rating: 67 Neutral
• Price Target: HK$43.00 ▼(-3.37% Downside)
• Action: Downgraded Date: 12/07/25
• Date: Action: Downgraded 12/07/25

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 generation

Exceptional free cash flow growth and near-2x operating cash conversion indicate the company consistently converts profits into cash. Durable cash generation supports reinvestment in product development, store network, and shareholder returns, improving long-term financial flexibility and resilience.

High profitability margins

Very high gross and operating margins reflect strong pricing power, premium product mix and control of cost of goods. Sustained margin structure provides buffer against cyclical demand, funds marketing and innovation, and underpins durable cash flow and return generation over multiple years.

Solid balance sheet and returns

Moderate leverage combined with high ROE and a majority-equity funding base implies financial strength and disciplined capital allocation. This balance supports investment in stores, digital channels and brand initiatives while keeping refinancing and liquidity risk low over the medium term.

Negative Factors

Wholesale channel margin pressure

Reliance on wholesale distribution exposes the company to structurally lower-margin sales and less control over brand presentation. Over time, a significant wholesale mix can compress group profitability and limit ability to capture full retail economics versus a predominantly direct channel model.

Seasonal product cycle dependency

Operational dependence on seasonal launches requires continuous design, inventory and marketing investment. This structural cadence raises working-capital needs and execution risk: missed collections or slower sell-through can erode margins and force deeper markdowns across seasons.

Concentration in leather goods and accessories

Heavy reliance on leather goods and accessories concentrates revenue exposure to a few categories. Shifts in consumer preferences, sustainability regulations or supply-chain disruptions in leather could disproportionately impact sales and margins, requiring strategic diversification to mitigate long-term risk.

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 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 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. The company's performance in the luxury goods industry is commendable, though careful monitoring of leverage and maintaining growth momentum will be 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: 44.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 44.5 is above the 20-day moving average (MA) of 41.53, above the 50-day MA of 42.85, and below the 200-day MA of 45.85, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 80.67 is Negative, 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
0887	77 Outperform	HK$2.36B	9.28	5.10%	4.05%	6.60%	-14.32%
0590	73 Outperform	$17.44B	13.46	9.54%	4.43%	10.89%	2.02%
6181	69 Neutral	HK$127.79B	36.04	59.03%	2.51%	226.65%	278.96%
1913	67 Neutral	HK$111.77B	15.99	19.96%	3.17%	11.70%	12.44%
1929	64 Neutral	HK$128.74B	22.07	23.74%	4.21%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$9.38B	7.92	9.13%	4.60%	-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.

The most recent analyst rating on (HK:1913) stock is a Hold with a HK$50.00 price target. To see the full list of analyst forecasts on Prada SpA stock, see the HK:1913 Stock Forecast page.

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.

The most recent analyst rating on (HK:1913) stock is a Buy with a HK$58.00 price target. To see the full list of analyst forecasts on Prada SpA stock, see the HK:1913 Stock Forecast page.