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Brunello Cucinelli (IT:BC)
:BC

Brunello Cucinelli SpA (BC) AI Stock Analysis

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Brunello Cucinelli SpA

(Frankfurt:BC)

Rating:67Neutral
Price Target:
€112.00
▲(8.90%Upside)
The overall stock score reflects strong financial performance driven by income growth and profitability, though tempered by significant leverage risks and cash flow management challenges. Technical analysis indicates a neutral to bearish momentum, while the high P/E ratio suggests overvaluation. The lack of earnings call insights and corporate events did not impact the score.
Positive Factors
Market Position
The company remains firmly in the market share winners' camp with +10% organic growth expected, driven by retail and balanced growth across regions.
Revenue Growth
Q1-25 revenue is anticipated to increase +10% YoY, slightly exceeding VA consensus estimate, highlighting the company’s consistent cruising speed fueled by more dynamic absolute luxury demand.
Negative Factors
Earnings
Net Income and cash generation fell slightly short, potentially prompting a low single-digit revision in consensus FY-25 EPS estimates.
Profitability
Softer profitability and higher working capital intensity resulted in a lower than expected FCF generation and higher Adj. Net Debt.

Brunello Cucinelli SpA (BC) vs. iShares MSCI Italy ETF (EWI)

Brunello Cucinelli SpA Business Overview & Revenue Model

Company DescriptionBrunello Cucinelli S.p.A., together with its subsidiaries, engages in the production and sale of clothing, accessories, and lifestyle products in Italy, Europe, North America, Japan, and China. The company offers women's collection, including coats and jackets, dresses, knitwear, t-shirts and tops, shirts, skirts, pants, denim, travel wear, sneakers, high-boots, loafers and flat shoes, sandals, leather goods, jewelry, scarves, other accessories, mini bags and clutches, crossbody bags and backpacks, and handbags and shoppers. It also provides men's collection, such as coats and jackets, knitwear, blazers and waistcoats, suits, tuxedos, t-shirts and polos, shirts, pants, denims, travel wear, sneakers, lace-ups, loafers, boots, leather goods, bags, scarves, and other accessories; and kids collections. In addition, the company offers lifestyle products, which include throw and blanket, cushion, studio products, candle and fragrance, bathrobe and towel, gardening products, travel essential, leisure bag, leisure wear, kitchen and table ware, table linen, and ceramic creation products, China, and internationally. As of December 31, 2021, it managed and operated 114 directly operated stores; and 30 wholesale monobrand boutiques. The company was founded in 1978 and is headquartered in Solomeo, Italy. Brunello Cucinelli S.p.A. is a subsidiary of Fedone S.r.l.
How the Company Makes MoneyBrunello Cucinelli SpA generates revenue primarily through the sale of its luxury clothing and accessories. The company's key revenue streams include direct retail sales through its network of exclusive boutiques located in major cities around the world, wholesale distribution to high-end department stores and specialty shops, and online sales via its e-commerce platform. Additionally, the brand's reputation for quality and exclusivity allows it to command premium pricing for its products. Strategic partnerships and collaborations with other luxury brands and designers also contribute to its earnings, enhancing its market presence and expanding its customer base.

Brunello Cucinelli SpA Financial Statement Overview

Summary
Brunello Cucinelli SpA shows strong income growth and profitability with a 12.22% revenue increase and a gross profit margin of 48.41%. However, the balance sheet reveals high leverage with a debt-to-equity ratio of 1.97, and cash flow management shows strain, with a 27.16% decrease in free cash flow.
Income Statement
86
Very Positive
Brunello Cucinelli SpA demonstrated strong revenue growth with a 12.22% increase from 2023 to 2024. The gross profit margin for 2024 is 48.41%, indicating efficient production cost management, while the net profit margin is 9.34%, suggesting solid profitability. The EBIT margin is 16.56%, and the EBITDA margin is 28.74%, both showing robust operational efficiency.
Balance Sheet
75
Positive
The company's debt-to-equity ratio in 2024 is 1.97, reflecting high leverage which could pose financial risks. However, the return on equity (ROE) is 24.39%, indicating strong returns on shareholder investments. The equity ratio of 28.07% shows a moderate level of equity financing relative to total assets.
Cash Flow
72
Positive
The free cash flow decreased by 27.16% from 2023 to 2024, which may concern cash management. The operating cash flow to net income ratio is 1.58, and the free cash flow to net income ratio is 0.83, suggesting adequate cash generation relative to profits but indicating some strain on free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.28B1.14B919.71M712.18M544.01M
Gross Profit618.80M602.34M454.10M330.93M250.25M
EBITDA367.50M343.37M270.05M191.98M87.20M
Net Income119.48M114.62M80.60M53.32M-32.07M
Balance Sheet
Total Assets1.74B1.38B1.32B1.17B1.08B
Cash, Cash Equivalents and Short-Term Investments182.75M107.83M117.51M98.08M72.83M
Total Debt958.72M669.77M687.64M667.59M677.51M
Total Liabilities1.24B926.27M930.01M846.10M818.63M
Stockholders Equity489.94M441.79M382.54M316.14M258.97M
Cash Flow
Free Cash Flow98.74M135.51M153.40M154.69M-10.73M
Operating Cash Flow188.93M209.05M215.94M208.18M36.46M
Investing Cash Flow-108.95M-52.84M-81.54M-58.35M-41.06M
Financing Cash Flow-6.51M-163.62M-115.65M-127.38M11.27M

Brunello Cucinelli SpA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price102.85
Price Trends
50DMA
102.95
Negative
100DMA
107.62
Negative
200DMA
102.71
Positive
Market Momentum
MACD
-0.94
Negative
RSI
51.24
Neutral
STOCH
63.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BC, the sentiment is Positive. The current price of 102.85 is above the 20-day moving average (MA) of 102.04, below the 50-day MA of 102.95, and above the 200-day MA of 102.71, indicating a neutral trend. The MACD of -0.94 indicates Negative momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 63.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BC.

Brunello Cucinelli SpA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITBC
67
Neutral
€6.99B58.5325.65%0.81%12.21%4.24%
66
Neutral
€9.18B14.505.85%3.08%3.86%-31.71%
64
Neutral
€12.95B20.2318.81%2.40%4.18%4.35%
45
Neutral
€827.06M112.46-10.16%2.04%-10.48%-360.89%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:BC
Brunello Cucinelli SpA
102.85
9.98
10.75%
IT:MONC
Moncler S.p.A.
47.84
-8.37
-14.89%
IT:SFER
Salvatore Ferragamo S.p.A.
4.99
-2.85
-36.37%
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: Jun 28, 2025