Brunello Cucinelli SpA (BC) AI Stock Analysis

• Market Cap: €7.15B
• Dividend Yield: 0.89%
• Average Volume (3M): 125.05K
• Price to Earnings (P/E): 59.8
• Beta (1Y): 0.82
• Revenue Growth: 12.21%
• EPS Growth: 4.24%
• Country: IT
• Employees: 3,165
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Luxury Goods
• EPS (TTM): 0.44
• Shares Outstanding: 68,000,000
• 10 Day Avg. Volume: 126,881
• 30 Day Avg. Volume: 125,054
• PEG Ratio: -3.59
• Price to Book (P/B): 15.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 74.39
• 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: €116.67
• Price Target Upside: 11.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: €116.00 ▲(10.37%Upside)

The overall score for Brunello Cucinelli SpA is 71, driven primarily by strong financial performance, particularly in revenue and profitability. Technical analysis indicates neutral market sentiment with no strong directional trends. Valuation concerns arise from the high P/E ratio, suggesting potential overvaluation, which slightly offsets the positive financial indicators.

Positive Factors

Market Share

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 revenue is anticipated to increase +10% YoY, slightly exceeding consensus estimates, highlighting the company’s consistent performance fueled by dynamic luxury demand.

Negative Factors

Earnings Estimate

Net Income and cash generation fell slightly short, potentially prompting a low single-digit revision in consensus EPS estimates.

Profitability

Softer profitability and higher working capital intensity resulted in a lower than expected free cash flow generation and higher adjusted net debt.

Brunello Cucinelli SpA Business Overview & Revenue Model

Company Description

Brunello 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 Money

Brunello Cucinelli SpA generates revenue primarily through the sale of its luxury apparel and accessories. The company operates a vertically integrated business model, which allows it to maintain high control over the quality and production of its goods. Revenue streams include direct sales through a network of mono-brand retail stores located in prestigious shopping destinations worldwide, as well as through its e-commerce platform. Additionally, the brand distributes products through select high-end department stores and specialty retailers. Key factors contributing to its earnings include the brand's strong reputation for quality, the exclusivity of its products, and its ability to attract affluent consumers seeking luxury fashion. Partnerships with luxury retailers and collaborations with other high-end brands also play a role in the company's revenue generation.

Brunello Cucinelli SpA Financial Statement Overview

Summary

Brunello Cucinelli SpA displays strong income growth and profitability, with efficient cost management and operational performance. However, the high leverage poses financial risks, and cash flow management challenges exist, especially with declining free cash flow.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.14B	919.71M	712.18M	544.01M
Gross Profit	618.80M	602.34M	454.10M	330.93M	250.25M
EBITDA	367.50M	343.37M	270.05M	191.98M	87.20M
Net Income	119.48M	114.62M	80.60M	53.32M	-32.07M
Balance Sheet
Total Assets	1.74B	1.38B	1.32B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	182.75M	107.83M	117.51M	98.08M	72.83M
Total Debt	958.72M	669.77M	687.64M	667.59M	677.51M
Total Liabilities	1.24B	926.27M	930.01M	846.10M	818.63M
Stockholders Equity	489.94M	441.79M	382.54M	316.14M	258.97M
Cash Flow
Free Cash Flow	98.74M	135.51M	153.40M	154.69M	-10.73M
Operating Cash Flow	188.93M	209.05M	215.94M	208.18M	36.46M
Investing Cash Flow	-108.95M	-52.84M	-81.54M	-58.35M	-41.06M
Financing Cash Flow	-6.51M	-163.62M	-115.65M	-127.38M	11.27M

Brunello Cucinelli SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 105.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BC, the sentiment is Neutral. The current price of 105.1 is below the 20-day moving average (MA) of 105.47, below the 50-day MA of 105.33, and above the 200-day MA of 104.25, indicating a neutral trend. The MACD of 0.79 indicates Positive momentum. The RSI at 48.92 is Neutral, neither overbought nor oversold. The STOCH value of 23.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BC.

Brunello Cucinelli SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BC	71 Outperform	€7.15B	59.81	25.65%	0.89%	12.21%	4.24%
Sector *	67 Neutral	€8.45B	14.89	8.46%	3.26%	4.05%	-25.38%
0QII	―	€13.64B	21.33	18.81%	2.62%	―	―
0HPP	―	€122.99M	8.97	17.35%	―	―	―
0P52	―	€841.64M	111.21	-10.16%	1.98%	―	―
CULT	―	€55.10M	12.14		0.56%	―	―
FPE	74 Outperform	€214.90M	25.75		2.13%	9.98%	-16.79%