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

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IT:AEF

Aeffe S.p.A.

(LSE:AEF)

Rating:50Neutral
Price Target:
€0.50
▲(4.17% Upside)
Aeffe S.p.A.'s stock score is primarily influenced by its financial performance and valuation. The financial performance is weak due to declining revenue and high leverage, while the valuation suggests potential undervaluation. Technical analysis shows neutral indicators, providing no strong directional bias.
Positive Factors
Cost Optimization
Aeffe plans to continue to focus on costs optimisation, which should result in a structurally better profitability.
Market Reception
All the brands’ collections were received with great enthusiasm during the latest Milan Fashion Week.
Strategic Appointments
The group has appointed Marco Gobbetti - former CEO of Burberry and Ferragamo - to its Board of Directors to shape growth strategies and explore strategic partnerships.
Negative Factors
Earnings Performance
Aeffe reported weak H1 2025 results, with consolidated revenues falling to €100m, down 27.7% YoY and approx. 5% below our expectations.
Retail Visibility
FY24 preliminary revenues showed a strong decline and we understand that visibility on FY25 as for retail is low.
Revenue Decline
The general global slowdown had a strong impact on both the wholesale and retail channels, reflecting in consolidated 1Q25 results strongly down yoy.

Aeffe S.p.A. (AEF) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionAeffe 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 MoneyAeffe 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
45
Neutral
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
40
Negative
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
35
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue303.25M250.80M329.36M363.57M333.11M279.60M
Gross Profit141.24M10.97M31.27M111.90M102.17M71.91M
EBITDA67.34M81.15M4.76M34.31M35.76M3.27M
Net Income11.22M19.33M-32.14M-9.06M12.13M-23.36M
Balance Sheet
Total Assets361.80M393.63M464.13M499.30M445.17M488.59M
Cash, Cash Equivalents and Short-Term Investments12.60M20.82M14.63M21.66M31.31M39.83M
Total Debt104.15M173.22M268.10M253.48M202.97M183.50M
Total Liabilities290.14M295.48M384.89M389.49M325.01M309.83M
Stockholders Equity71.17M97.79M79.10M109.81M120.16M148.23M
Cash Flow
Free Cash Flow-29.58M1.51M-12.40M-58.12M44.65M-1.76M
Operating Cash Flow-25.82M9.73M6.43M-1.54M48.65M10.27M
Investing Cash Flow93.99M89.78M-18.83M-56.59M-3.90M-12.03M
Financing Cash Flow-66.65M-93.32M5.37M48.48M-53.28M13.20M

Aeffe S.p.A. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.48
Price Trends
50DMA
0.48
Negative
100DMA
0.52
Negative
200DMA
0.65
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.02
Neutral
STOCH
70.45
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 0.48 is above the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.48, and below the 200-day MA of 0.65, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$17.92B12.81-3.11%2.97%1.30%-14.28%
50
Neutral
€47.85M4.2017.31%
€12.74B20.8118.89%
€765.76M111.21-20.18%
€6.54B49.2128.41%
€5.87B11.648.98%
€9.07M9.68
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:AEF
Aeffe S.p.A.
0.48
-0.21
-30.78%
GB:0QII
Moncler S.p.A.
47.05
-1.60
-3.29%
GB:0P52
Salvatore Ferragamo S.p.A.
4.64
-2.01
-30.23%
DE:8BU
Brunello Cucinelli SpA
95.46
12.32
14.82%
DE:2PI
Pirelli & C. SpA
5.81
0.66
12.82%
IT:RAD
Radici Pietro Industries & Brands SpA
1.04
0.00
0.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2025