Aeffe S.p.A. (AEF) AI Stock Analysis

• Market Cap: €46.41M
• Dividend Yield: N/A
• Average Volume (3M): 114.17K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.60
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IT
• Employees: 1,108
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.16
• Shares Outstanding: 107,362,500
• 10 Day Avg. Volume: 108,897
• 30 Day Avg. Volume: 114,169
• 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: €0.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: €0.50 ▲(8.70% Upside)

Aeffe S.p.A. scores 52, driven primarily by financial performance and technical analysis, both indicating challenges. The stock's low valuation presents a potential opportunity but is overshadowed by financial instability and negative market trends. The absence of earnings call insights and noteworthy corporate events limits additional context.

Positive Factors

Financial Position

The disposal of the Moschino Class 3 brand has driven Aeffe to a more solid position from a financial standpoint, despite the current tough environment.

Market Reception

All the brands’ collections were received with great enthusiasm during the latest Milan Fashion Week.

Profitability

Aeffe plans to continue to focus on costs optimisation, which should result in a structurally better profitability.

Negative Factors

Revenue Decline

Group revenues declined by over 20% YoY to €250.8m, with all regions experiencing double-digit declines.

Revenue Visibility

Neutral stance on the stock considering the limited visibility on revenues’ recovery.

Sales Performance

Rough start to 2025: Sales slump, losses deepen.

Aeffe S.p.A. Business Overview & Revenue Model

Company Description

Aeffe S.p.A. (AEF) is an Italian fashion and luxury goods company that operates in the design, production, and distribution of high-end apparel, accessories, and footwear. Founded in 1984, Aeffe is well-known for its diverse portfolio of prestigious brands, including Alberta Ferretti, Philosophy di Lorenzo Serafini, and Moschino. The company is primarily focused on the ready-to-wear segment and has a strong presence in both the Italian and international markets, catering to a discerning clientele seeking luxury fashion.

How the Company Makes Money

Aeffe S.p.A. generates revenue through several key streams, primarily by selling its luxury fashion products, including clothing, accessories, and footwear, both through wholesale distribution to high-end department stores and boutiques, as well as through its own retail stores and e-commerce platforms. The company benefits from strong brand recognition and customer loyalty, which drive sales. Additionally, Aeffe engages in strategic partnerships and collaborations with other brands and designers, enhancing its market appeal and expanding its customer base. Seasonal collections, limited edition releases, and participation in fashion shows also contribute to its brand prestige and revenue generation.

Aeffe S.p.A. Financial Statement Overview

Summary

Aeffe S.p.A. faces financial challenges characterized by inconsistent revenue and profit margins, high leverage, and cash flow issues. The volatile performance across metrics suggests potential operational and financial risks.

Income Statement

Aeffe S.p.A. shows inconsistent revenue trends with a notable decrease in the latest TTM period. Gross profit margins are volatile, and EBIT margins reflect operational challenges, especially with negative EBIT values in some years. Net profit margin has fluctuated widely, indicating instability in profitability.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, indicating significant leverage. Although total assets have decreased, the equity ratio is moderately stable. Return on equity is inconsistent, further reflecting operational challenges.

Cash Flow

Aeffe S.p.A. experiences negative free cash flows in the latest TTM period, highlighting cash generation issues. Operating cash flow to net income ratios show fluctuations, indicating potential risks in converting profits to cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	250.80M	329.36M	363.57M	333.11M	279.60M
Gross Profit	10.97M	31.27M	111.90M	102.17M	71.91M
EBITDA	81.15M	4.76M	34.31M	35.76M	3.27M
Net Income	19.33M	-32.14M	-9.06M	12.13M	-23.36M
Balance Sheet
Total Assets	393.63M	464.13M	499.30M	445.17M	488.59M
Cash, Cash Equivalents and Short-Term Investments	20.82M	14.63M	21.66M	31.31M	39.83M
Total Debt	173.22M	268.10M	253.48M	202.97M	183.50M
Total Liabilities	295.48M	384.89M	389.49M	325.01M	309.83M
Stockholders Equity	97.79M	79.10M	109.81M	120.16M	148.23M
Cash Flow
Free Cash Flow	1.51M	-12.40M	-58.12M	44.65M	-1.76M
Operating Cash Flow	9.73M	6.43M	-1.54M	48.65M	10.27M
Investing Cash Flow	89.78M	-18.83M	-56.59M	-3.90M	-12.03M
Financing Cash Flow	-93.32M	5.37M	48.48M	-53.28M	13.20M

Aeffe S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AEF, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.50, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 88.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:AEF.

Aeffe S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BC	71 Outperform	€6.56B	54.93	25.65%	0.97%	12.21%	4.24%
PIRC	68 Neutral	€5.86B	11.75	8.98%	4.31%	2.47%	7.85%
MONC	64 Neutral	€12.51B	20.43	18.89%	2.81%	0.87%	-5.61%
Sector *	59 Neutral	€9.01B	10.49	-13.89%	4.55%	0.76%	-39.51%
AEF	52 Neutral	€46.41M	3.37	17.31%	―	―	―
SFER	45 Neutral	€750.18M	112.46	-20.18%	2.22%	-8.65%	-1512.63%