Brunello Cucinelli SpA (BC) AI Stock Analysis

• Market Cap: €7.22B
• Dividend Yield: 0.89%
• Average Volume (3M): 123.27K
• Price to Earnings (P/E): 58.8
• Beta (1Y): 0.80
• Revenue Growth: 12.21%
• EPS Growth: 4.24%
• Country: IT
• Employees: 3,165
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Luxury Goods
• EPS (TTM): 1.76
• Shares Outstanding: 68,000,000
• 10 Day Avg. Volume: 128,804
• 30 Day Avg. Volume: 123,266
• PEG Ratio: -3.38
• Price to Book (P/B): 14.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 70.23
• 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: €118.20
• Price Target Upside: 11.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: €116.00 ▲(9.23%Upside)

Brunello Cucinelli SpA's strong financial performance, especially in income growth and profitability, is a significant positive factor. However, high leverage and cash flow management issues are risks. Technical indicators are mixed, and the stock's high valuation suggests caution.

Positive Factors

Awards and Recognition

The company received several awards, including the “Good Business” award from Bloomberg China and “John B. Fairchild Honor” recognition from WWD magazine.

Earnings

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.

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.

Negative Factors

Cash Flow

Softer profitability and higher working capital intensity resulted in a lower than expected FCF generation and higher Adj. Net Debt.

Financial Performance

Net Income and cash generation fell slightly short, potentially prompting a low single-digit revision in consensus FY-25 EPS estimates.

Brunello Cucinelli SpA Business Overview & Revenue Model

Company Description

Brunello Cucinelli SpA is a renowned Italian luxury fashion brand, recognized for its high-quality craftsmanship and sophisticated designs. The company specializes in the production and sale of premium clothing, accessories, and lifestyle products for both men and women. Known for its use of fine cashmere and other luxurious materials, Brunello Cucinelli positions itself in the luxury market, offering a blend of traditional Italian tailoring and contemporary fashion aesthetics.

How the Company Makes Money

Brunello 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 exhibits strong income growth and profitability, with efficient cost management and operational performance. The balance sheet, however, reveals high leverage which poses financial risks, albeit with strong shareholder returns. Cash flow management is challenging, particularly in free cash flow, though operational cash generation remains adequate.

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
	EBIT
211.67M	187.41M	134.41M	77.04M	14.81M
	EBITDA
367.50M	343.37M	270.05M	191.98M	87.20M
	Net Income Common Stockholders
119.48M	114.62M	80.60M	53.32M	-32.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
182.75M	107.83M	117.51M	98.08M	72.83M
	Total Assets
1.74B	1.38B	1.32B	1.17B	1.08B
	Total Debt
958.72M	669.77M	687.64M	667.59M	677.51M
	Net Debt
776.67M	562.83M	570.24M	569.59M	604.67M
	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: 106.20
• 50DMA: Positive
• 100DMA: Negative
• 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 106.2 is below the 20-day moving average (MA) of 106.71, above the 50-day MA of 102.31, and above the 200-day MA of 101.38, indicating a neutral trend. The MACD of 1.18 indicates Positive momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 59.57 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
MONC	73 Outperform	€14.88B	22.55	18.81%	2.37%	4.18%	4.35%
PRY	71 Outperform	€16.51B	23.55	15.32%	1.36%	20.34%	25.32%
SPM	70 Outperform	€4.43B	14.44	12.44%	7.54%	22.53%	73.36%
BC	69 Neutral	€7.22B	58.82	25.65%	0.89%	12.21%	4.24%
Sector *	62 Neutral	$6.93B	11.25	2.95%	3.88%	2.69%	-24.71%
GEO	52 Neutral	€118.27M	―	-38.29%	―	-7.76%	-366.10%