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

• Market Cap: €25.25M
• Dividend Yield: N/A
• Average Volume (3M): 499.32K
• Price to Earnings (P/E): 2.3
• Beta (1Y): 0.28
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IT
• Employees: 1,108
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €0.25 ▼(-26.18% Downside)

The score is held down mainly by weak financial performance (declining revenue, negative operating/free cash flow, and elevated leverage) and bearish technicals (price below major moving averages with negative MACD). A very low P/E provides some support, but it does not fully offset the financial and trend risks.

Positive Factors

Brand Portfolio Strength

Aeffe's ownership/operation of well-known luxury labels and decades-long heritage supports durable pricing power, customer loyalty and channel access. Brand equity underpins long-term margins and helps sustain demand across market cycles over the next 2–6 months.

Diversified Revenue Streams

Multiple sales channels and licensing reduce concentration risk and stabilize cash flow. Wholesale, direct retail and e‑commerce plus licensing allow portfolio rebalancing and margin mix optimization, improving resilience to shifts in any single channel.

Sustainable Profitability Metrics

Relatively healthy margins and robust ROE indicate the core business can generate acceptable returns despite top‑line pressure. Margin durability provides a cushion for reinvestment and profitability restoration over a multi‑month horizon.

Negative Factors

Declining Revenue Trend

A sustained revenue decline erodes operating leverage and limits fixed‑cost absorption, threatening longer‑term growth and margin sustainability. If the top‑line contraction continues, the company may struggle to restore scale and competitive positioning.

Weak Cash Generation

Persistent negative operating and free cash flows imply reliance on non‑operational financing and limit ability to fund capex, inventory or dividends internally. This constrains strategic flexibility and heightens liquidity risk over the medium term.

Elevated Financial Leverage

Significant leverage increases interest and refinancing risk, reducing capacity to absorb shocks or invest in growth. Combined with weak cash generation, the elevated debt burden limits strategic optionality and raises solvency concerns over coming quarters.

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 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

Overall fundamentals are pressured: revenue is declining (-5.81%) and cash generation is weak with negative operating and free cash flow. Leverage is relatively high (debt-to-equity 0.90), partially offset by decent profitability metrics (gross margin 32.52%, EBIT margin 13.19%, ROE 16.48%).

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	236.74M	250.80M	329.36M	363.57M	333.11M	279.60M
Gross Profit	153.13M	10.97M	31.27M	111.90M	102.17M	71.91M
EBITDA	66.06M	81.15M	2.73M	34.31M	35.76M	1.59M
Net Income	18.65M	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	68.34M	1.51M	-12.40M	-58.12M	44.65M	-1.76M
Operating Cash Flow	69.48M	9.73M	6.43M	-1.54M	48.65M	10.27M
Investing Cash Flow	8.11M	89.78M	-18.83M	-56.59M	-3.90M	-12.03M
Financing Cash Flow	-44.58M	-93.32M	5.37M	48.48M	-53.28M	13.20M

Aeffe S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 0.34 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.27, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 17.62 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	€13.22B	21.59	18.89%	2.32%	0.87%	-5.61%
PIRC	66 Neutral	€6.31B	12.72	8.81%	4.33%	1.64%	14.73%
BC	62 Neutral	€5.52B	41.84	28.41%	0.95%	10.35%	15.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFER	55 Neutral	€1.07B	-8.11	-20.18%	1.24%	-8.65%	-1512.63%
AEF	46 Neutral	€25.25M	2.25	17.31%	―	―	―