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

• Market Cap: €48.90M
• Dividend Yield: N/A
• Average Volume (3M): 122.90K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.54
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IT
• Employees: 1,108
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.10
• Shares Outstanding: 107,362,500
• 10 Day Avg. Volume: 139,321
• 30 Day Avg. Volume: 122,904
• PEG Ratio: -0.16
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.25
• 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: 42.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• 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. 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 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

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

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

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.

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: 0.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.49 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PIRC	73 Outperform	€5.87B	11.97	8.52%	4.26%	2.87%	6.90%
BC	71 Outperform	€6.90B	58.79	25.65%	0.93%	12.21%	4.24%
MONC	64 Neutral	€12.92B	21.44	18.81%	2.72%	4.18%	4.35%
Sector *	57 Neutral	HK$26.40B	4.14	-2.03%	5.51%	-0.23%	-68.02%
AEF	51 Neutral	€48.90M	3.26	18.24%	―	―	―
SFER	45 Neutral	€873.94M	112.46	-10.16%	1.89%	-10.48%	-360.89%