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

• Market Cap: €49.65M
• Dividend Yield: N/A
• Average Volume (3M): 172.54K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.57
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IT
• Employees: 1,108
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.10
• Shares Outstanding: 107,362,500
• 10 Day Avg. Volume: 110,759
• 30 Day Avg. Volume: 172,541
• PEG Ratio: 0.08
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.10
• 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: €0.70
• Price Target Upside: 40.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: €0.50 ▲(0.00%Upside)

Aeffe S.p.A.'s stock score is primarily impacted by its financial challenges, including declining profitability and high leverage, despite some improvement in equity ratios. The technical analysis indicates a bearish trend, while the valuation suggests potential undervaluation. The absence of earnings call and corporate events data limited further insights.

Positive Factors

Financial Position

The sale of the Moschino Class 3 brand has strengthened Aeffe's financial position, despite challenging market conditions.

Market Reception

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

Profitability

Aeffe's focus on cost optimization is expected to improve profitability.

Negative Factors

Retail Visibility

Visibility on the retail side is still poor, affecting future revenue projections.

Revenue Decline

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

Sales Performance

Both wholesale and retail channels performed poorly, with wholesale underperforming in Q4 (-45% YoY).

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 primarily through the design, production, and sale of luxury fashion apparel, footwear, and accessories. Its key revenue streams include the prêt-à-porter segment, which involves high-end ready-to-wear clothing, and the footwear and leather goods segment, which includes shoes and accessories. The company sells its products through a combination of directly operated stores, franchise stores, and wholesale distribution channels. Additionally, Aeffe benefits from licensing agreements and collaborations with other luxury and fashion brands, enhancing its brand portfolio and expanding its market reach. The company's earnings are influenced by global fashion trends, brand strength, and customer demand in its target markets.

Aeffe S.p.A. Financial Statement Overview

Summary

Aeffe S.p.A. faces significant financial challenges with declining revenue and profitability, high leverage, and volatile cash flow. Despite a positive trend in equity financing, profitability and leverage issues need addressing to improve financial health.

Income Statement

Aeffe S.p.A.'s income statement shows declining revenue and profitability. The Gross Profit Margin decreased from 35.6% in 2021 to 4.4% in 2024, indicating pressure on profitability. The company experienced a negative Net Profit Margin in most recent years, with a minor improvement in 2024. Revenue growth has been inconsistent, with a significant decline from 2022 to 2023. EBIT and EBITDA margins have also deteriorated, reflecting operational challenges.

Balance Sheet

The balance sheet of Aeffe S.p.A. reveals high leverage, with a Debt-to-Equity ratio of 1.77 in 2024, indicating potential financial risk. However, the Equity Ratio improved to 24.8% in 2024 from 17.0% in 2023, showing a positive trend in equity financing. Return on Equity was positive in 2024, indicating some profitability despite challenges.

Cash Flow

Cash flow analysis shows a volatile Free Cash Flow, with some improvements in 2024. Operating Cash Flow to Net Income ratio is positive, suggesting operational cash flow generation. However, the Free Cash Flow to Net Income ratio remains low, indicating limited cash available after capital expenditures.

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: 0.50
• 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 0.5 is below the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.55, and below the 200-day MA of 0.72, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 23.27 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
Sector *	66 Neutral	£1.85B	11.29	6.20%	3.10%	0.61%	-17.57%
AEF	56 Neutral	€49.65M	3.32	18.24%	―	―	―
0QII		€13.38B	20.97	18.81%	2.28%	―	―
0P52		€853.24M	111.21	-10.16%	1.94%	―	―
8BU		€7.24B	60.18	25.65%	0.88%	―	―
2PI		€5.84B	11.96	8.52%	4.28%	―	―
RAD		€9.33M	9.96		―	―	―