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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:51Neutral
Price Target:
€0.50
▲(2.04%Upside)
Aeffe S.p.A.'s overall stock score is driven by financial instability with inconsistent revenue and profit margins, high leverage, and cash flow issues. The technical analysis shows bearish trends, but the low P/E ratio suggests potential undervaluation. These factors combined result in a moderate overall score.
Positive Factors
Financial Position
The disposal of the Moschino Class 3 brand has driven Aeffe to a more solid position from a financial standpoint, despite the current tough environment.
Market Enthusiasm
All the brands’ collections were received with great enthusiasm during the latest Milan Fashion Week.
Profitability
Aeffe plans to continue to focus on cost optimisation, which should result in a structurally better profitability.
Negative Factors
Economic Uncertainty
Creative transitions at Moschino and Alberta Ferretti add short-term uncertainty.
Revenue Decline
Group revenues declined by over 20% YoY to €250.8m, with all regions experiencing double-digit declines.
Sales Performance
All regions and sales channels declined at a double-digit rate, with wholesale hit hardest.

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

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

Company DescriptionAeffe 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 MoneyAeffe 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 financial challenges characterized by inconsistent revenue and profit margins, high leverage, and cash flow issues. The volatile performance across metrics suggests potential operational and financial risks.
Income Statement
45
Neutral
Aeffe S.p.A. shows inconsistent revenue trends with a notable decrease in the latest TTM period. Gross profit margins are volatile, and EBIT margins reflect operational challenges, especially with negative EBIT values in some years. Net profit margin has fluctuated widely, indicating instability in profitability.
Balance Sheet
50
Neutral
The company's balance sheet reflects a high debt-to-equity ratio, indicating significant leverage. Although total assets have decreased, the equity ratio is moderately stable. Return on equity is inconsistent, further reflecting operational challenges.
Cash Flow
40
Negative
Aeffe S.p.A. experiences negative free cash flows in the latest TTM period, highlighting cash generation issues. Operating cash flow to net income ratios show fluctuations, indicating potential risks in converting profits to cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue250.80M329.36M363.57M333.11M279.60M
Gross Profit10.97M31.27M111.90M102.17M71.91M
EBITDA81.15M4.76M34.31M35.76M3.27M
Net Income19.33M-32.14M-9.06M12.13M-23.36M
Balance Sheet
Total Assets393.63M464.13M499.30M445.17M488.59M
Cash, Cash Equivalents and Short-Term Investments20.82M14.63M21.66M31.31M39.83M
Total Debt173.22M268.10M253.48M202.97M183.50M
Total Liabilities295.48M384.89M389.49M325.01M309.83M
Stockholders Equity97.79M79.10M109.81M120.16M148.23M
Cash Flow
Free Cash Flow1.51M-12.40M-58.12M44.65M-1.76M
Operating Cash Flow9.73M6.43M-1.54M48.65M10.27M
Investing Cash Flow89.78M-18.83M-56.59M-3.90M-12.03M
Financing Cash Flow-93.32M5.37M48.48M-53.28M13.20M

Aeffe S.p.A. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.49
Price Trends
50DMA
0.52
Negative
100DMA
0.58
Negative
200DMA
0.70
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
42.11
Neutral
STOCH
24.70
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 0.49 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.52, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 24.70 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€5.87B11.978.52%4.26%2.87%6.90%
71
Outperform
€6.90B58.7925.65%0.93%12.21%4.24%
64
Neutral
€12.92B21.4418.81%2.72%4.18%4.35%
57
Neutral
HK$26.40B4.14-2.03%5.51%-0.23%-68.02%
51
Neutral
€48.90M3.2618.24%
45
Neutral
€873.94M112.46-10.16%1.89%-10.48%-360.89%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:AEF
Aeffe S.p.A.
0.49
-0.23
-32.32%
IT:MONC
Moncler S.p.A.
47.72
-7.51
-13.60%
IT:SFER
Salvatore Ferragamo S.p.A.
5.28
-2.88
-35.28%
IT:BC
Brunello Cucinelli SpA
101.45
15.13
17.52%
IT:PIRC
Pirelli & C. SpA
5.87
0.29
5.27%
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: Jul 18, 2025