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

• Market Cap: €22.54M
• Dividend Yield: N/A
• Average Volume (3M): 499.32K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 0.23
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IT
• Employees: 1,108
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.19
• Shares Outstanding: 107,362,500
• 10 Day Avg. Volume: 899,408
• 30 Day Avg. Volume: 499,321
• PEG Ratio: -0.03
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 56.50
• 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: €0.51
• Price Target Upside: 121.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: €0.50 ▲(117.39% Upside)

Aeffe S.p.A.'s overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The low P/E ratio suggests potential undervaluation, but financial and technical challenges overshadow this, resulting in a cautious outlook.

Positive Factors

Brand Portfolio

Aeffe's diverse brand portfolio enhances its market position in the luxury fashion industry, allowing it to cater to a wide range of consumer preferences and maintain a strong competitive edge.

Revenue Streams

Multiple revenue streams provide Aeffe with a stable income base, reducing dependency on any single source and enhancing resilience against market fluctuations.

Profitability Metrics

A strong return on equity indicates effective management and the ability to generate profits from shareholders' investments, supporting long-term financial health.

Negative Factors

Revenue Decline

A declining revenue trend poses a risk to Aeffe's market position and long-term growth prospects, indicating potential challenges in maintaining sales momentum.

High Leverage

High leverage can strain Aeffe's financial flexibility, increasing vulnerability to economic downturns and limiting its ability to invest in growth opportunities.

Cash Flow Challenges

Persistent cash flow issues could impact Aeffe's ability to fund operations and strategic initiatives, potentially affecting long-term sustainability and growth.

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

Company Description

Aeffe S.p.A. is an Italian fashion and luxury goods company, primarily engaged in the design, production, and marketing of high-end apparel, leather goods, and accessories. Established in 1984, Aeffe operates through several prestigious brands, including Alberta Ferretti, Moschino, and Philosophy di Lorenzo Serafini. The company is known for its commitment to quality craftsmanship and innovative design, catering to a global audience in the luxury fashion market.

How the Company Makes Money

Aeffe S.p.A. generates revenue through multiple streams, primarily from the wholesale distribution of its branded products to high-end department stores and boutiques worldwide. Additionally, the company earns significant income from its own retail outlets and e-commerce platforms, where it sells directly to consumers. Aeffe also monetizes its brand through licensing agreements for accessories and fragrances, expanding its product offerings without incurring additional production costs. Strategic partnerships with influential designers and collaborations with other luxury brands further enhance its market presence and profitability.

Aeffe S.p.A. Financial Statement Overview

Summary

Aeffe S.p.A. faces challenges across its financial statements. While profitability metrics show some strength with a net profit margin of 4.60% and a return on equity of 16.48%, declining revenue (-5.81%) and high leverage (debt-to-equity ratio of 0.90) are concerning. Cash flow issues, including negative operating and free cash flow, further exacerbate financial risks.

Income Statement

Aeffe S.p.A. shows a mixed performance in its income statement. The TTM data reflects a gross profit margin of 32.52% and a net profit margin of 4.60%, indicating moderate profitability. However, the revenue growth rate is negative at -5.81%, suggesting a decline in sales. The EBIT and EBITDA margins are relatively healthy at 13.19% and 22.74%, respectively, but the overall revenue decline is a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 0.90 in the TTM period, indicating significant leverage. The return on equity is 16.48%, which is a positive sign of profitability. However, the equity ratio is not provided, limiting a full assessment of financial stability. The high leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis highlights challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is 1.10, suggesting reliance on non-operational sources for cash generation. The negative cash flow growth rate indicates potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.31M	250.80M	329.36M	363.57M	333.11M	279.60M
Gross Profit	45.97M	10.97M	31.27M	111.90M	102.17M	71.91M
EBITDA	-24.76M	81.15M	2.73M	34.31M	35.76M	1.59M
Net Income	-36.67M	19.33M	-32.14M	-9.06M	12.13M	-23.36M
Balance Sheet
Total Assets	361.80M	393.63M	464.13M	499.30M	445.17M	488.59M
Cash, Cash Equivalents and Short-Term Investments	12.60M	20.82M	14.63M	21.66M	31.31M	39.83M
Total Debt	104.15M	173.22M	268.10M	253.48M	202.97M	183.50M
Total Liabilities	290.14M	295.48M	384.89M	389.49M	325.01M	309.83M
Stockholders Equity	71.17M	97.79M	79.10M	109.81M	120.16M	148.23M
Cash Flow
Free Cash Flow	9.27M	1.51M	-12.40M	-58.12M	44.65M	-1.76M
Operating Cash Flow	8.64M	9.73M	6.43M	-1.54M	48.65M	10.27M
Investing Cash Flow	132.00K	89.78M	-18.83M	-56.59M	-3.90M	-12.03M
Financing Cash Flow	-1.91M	-93.32M	5.37M	48.48M	-53.28M	13.20M

Aeffe S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.23
• 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 IT:AEF, the sentiment is Negative. The current price of 0.23 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.30, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 16.41 is Positive, neither overbought nor oversold. The STOCH value of 5.74 is Positive, 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
MONC	74 Outperform	€15.81B	25.83	18.89%	2.24%	0.87%	-5.61%
PIRC	71 Outperform	€6.15B	12.33	8.81%	4.05%	1.64%	14.73%
BC	62 Neutral	€6.32B	47.88	28.41%	1.01%	10.35%	15.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFER	55 Neutral	€1.12B	-8.50	-20.18%	1.26%	-8.65%	-1512.63%
AEF	45 Neutral	€22.54M	2.04	17.31%	―	―	―