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

• Market Cap: €28.69M
• Dividend Yield: N/A
• Average Volume (3M): 499.32K
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.33
• 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: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €0.48
• Price Target Upside: 65.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 42 Neutral
• Price Target: €0.50 ▲(72.41% Upside)

Aeffe S.p.A.'s overall stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenue, high leverage, and cash flow issues. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages and in oversold conditions. While the valuation appears attractive with a low P/E ratio, the lack of dividend yield and financial risks weigh heavily on the overall assessment.

Positive Factors

Brand Recognition

Aeffe's strong brand recognition and customer loyalty are key competitive advantages, supporting long-term revenue stability and market presence.

Profitability Metrics

Aeffe's solid return on equity indicates effective management and profitability, which can sustain investor confidence and financial health over time.

Product Portfolio

Aeffe's diverse brand portfolio enhances market appeal and resilience, enabling it to capture a broad customer base and mitigate risks associated with single-brand dependency.

Negative Factors

Revenue Decline

The declining revenue trend poses a risk to Aeffe's market position and financial performance, necessitating strategic initiatives to reverse the trend and drive growth.

High Leverage

Aeffe's high leverage limits financial flexibility and increases vulnerability to economic downturns, potentially impacting long-term financial stability.

Cash Flow Issues

Negative cash flow highlights liquidity challenges, which can constrain Aeffe's ability to invest in growth opportunities and meet financial obligations.

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

Company Description

Aeffe S.p.A. designs, produces, and distributes fashion and luxury goods in Italy, rest of Europe, the United States, Asia, and internationally. It operates in two segments, Prêt-a-Porter, and Footwear and Leather Goods. The Prêt-a-Porter segment designs, produces, and distributes luxury prêt-a-porter garments and lingerie, beachwear, loungewear, underwear, and swimwear for men and women under its own-label brands, which include Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino, Boutique Moschino, and Love Moschino, as well as brands licensed from other companies. This segment distributes its products through retail and wholesale channels. The Footwear and Leather Goods segment designs, produces, and distributes footwear, small leather goods, bags, and matching accessories under the Pollini brand. This segment also grants licenses to other companies to manufacture Pollini branded products comprising umbrellas, scarves, and ties. The company also licenses the production and distribution of other accessories and products, including perfumes, junior and children's lines, watches, sunglasses, and other products. Aeffe S.p.A. was founded in 1972 and is headquartered in San Giovanni In Marignano, Italy.

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 challenges across its financial statements. While profitability metrics show some strength, declining revenue and high leverage are concerning. Cash flow issues further exacerbate financial risks, suggesting a need for strategic adjustments to improve financial health.

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	303.25M	250.80M	329.36M	363.57M	333.11M	279.60M
Gross Profit	141.24M	10.97M	31.27M	111.90M	102.17M	71.91M
EBITDA	67.34M	81.15M	4.76M	34.31M	35.76M	3.27M
Net Income	11.22M	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	-29.58M	1.51M	-12.40M	-58.12M	44.65M	-1.76M
Operating Cash Flow	-25.82M	9.73M	6.43M	-1.54M	48.65M	10.27M
Investing Cash Flow	93.99M	89.78M	-18.83M	-56.59M	-3.90M	-12.03M
Financing Cash Flow	-66.65M	-93.32M	5.37M	48.48M	-53.28M	13.20M

Aeffe S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 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 IT:AEF, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.42, and below the 200-day MA of 0.58, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 30.46 is Neutral, neither overbought nor oversold. The STOCH value of 37.40 is Neutral, 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	76 Outperform	€14.20B	23.20	18.89%	2.48%	0.87%	-5.61%
PIRC	71 Outperform	€6.01B	12.05	8.98%	4.16%	2.47%	7.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BC	55 Neutral	€6.11B	46.35	28.41%	1.05%	10.35%	15.89%
SFER	51 Neutral	€1.01B	112.46	-20.18%	1.63%	-8.65%	-1512.63%
AEF	42 Neutral	€28.69M	2.52	17.31%	―	―	―