Brunello Cucinelli SpA (BC) AI Stock Analysis

• Market Cap: €5.33B
• Dividend Yield: 0.95%
• Average Volume (3M): 888.10K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 0.89
• Revenue Growth: 10.35%
• EPS Growth: 15.89%
• Country: US
• Employees: 3,165
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.47
• Shares Outstanding: 68,000,000
• 10 Day Avg. Volume: 654,170
• 30 Day Avg. Volume: 888,100
• PEG Ratio: 14.48
• Price to Book (P/B): 14.63
• Price to Sales (P/S): 5.61
• P/FCF Ratio: 72.59
• 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: €108.00
• Price Target Upside: 36.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €84.00 ▲(6.17% Upside)

The overall stock score of 62 reflects a solid financial performance with strong profitability and effective equity utilization. However, the stock faces challenges with declining revenue, increasing leverage, and bearish technical indicators. The high P/E ratio suggests potential overvaluation, while the modest dividend yield offers limited income potential.

Positive Factors

High profitability and ROE

A ROE of ~26.9% signals the company efficiently converts shareholder capital into profit, supporting reinvestment capacity and long-term shareholder returns. This operating efficiency underpins margin sustainability in luxury segments that reward brand strength and disciplined cost control.

Premium brand with direct-to-consumer reach

Control of exclusive boutiques and e-commerce preserves pricing power, gross margin resilience and customer experience. A global DTC footprint supports higher lifetime value, tighter inventory control and strategic store investments that sustain demand among affluent consumers over the medium term.

Stable operating cash conversion

Consistent operating cash conversion indicates core business generates real cash to fund working capital, capex and distributions. Over months this reduces reliance on external financing, enabling investment in craftsmanship and store network while cushioning cyclical luxury demand swings.

Negative Factors

High leverage

A debt/equity ratio of 2.5 materially raises refinancing and interest-rate exposure, constraining strategic optionality. In a slower demand environment elevated leverage can force cost cutting or asset sales and limits ability to fund organic growth or sustain dividends without higher financing costs.

Declining free cash flow

Near 10% fall in free cash flow reduces internal funds available for capex, stores, and shareholder returns. Persisting FCF pressure would increase dependence on debt or equity to finance growth, weakening financial flexibility and potentially forcing prioritization between investment and payouts.

TTM revenue decline

A ~17% TTM revenue drop erodes scale economics and risks margin compression if fixed costs persist. For a premium brand, sustained top-line weakness can impair marketing and store investment, threatening long-term pricing power and the ability to maintain product and service standards.

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 generates revenue through the sale of its luxury apparel and accessories, which includes menswear, womenswear, and a range of lifestyle products. The company's primary revenue stream comes from direct-to-consumer sales via its exclusive boutiques and e-commerce platform, complemented by wholesale distributions to high-end department stores and specialty retailers. Significant partnerships with luxury retailers help to expand brand visibility and market reach. Additionally, Brunello Cucinelli capitalizes on its reputation for craftsmanship and quality, allowing it to command premium pricing for its products, which contributes significantly to its profit margins.

Brunello Cucinelli SpA Financial Statement Overview

Summary

Brunello Cucinelli SpA demonstrates strong profitability and effective equity utilization, but faces challenges with declining revenue and increasing leverage. The company needs to address its cash flow management to maintain financial stability. Overall, the financial health is solid, but vigilance is required to navigate potential risks.

Income Statement

Brunello Cucinelli SpA shows strong profitability with a consistent EBIT and EBITDA margin, indicating efficient operations. However, the recent TTM revenue decline of 17.19% is concerning, suggesting potential market challenges or demand fluctuations. Despite this, the company maintains a healthy net profit margin, reflecting effective cost management.

Balance Sheet

The company has a high debt-to-equity ratio of 2.50 in the TTM, indicating significant leverage which could pose risks if not managed carefully. However, the return on equity remains robust at 26.85%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains positive, but free cash flow has decreased by 9.95% in the TTM, indicating potential cash management issues. The operating cash flow to net income ratio is stable, suggesting that the company efficiently converts its earnings into cash. However, the decline in free cash flow growth is a concern that needs addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.28B	1.14B	919.71M	712.18M	544.01M
Gross Profit	624.05M	618.80M	602.34M	454.10M	330.93M	250.25M
EBITDA	379.35M	367.50M	330.56M	270.05M	191.98M	87.20M
Net Income	131.80M	119.48M	114.62M	80.60M	53.32M	-32.07M
Balance Sheet
Total Assets	2.00B	1.74B	1.38B	1.32B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	243.94M	182.75M	107.83M	117.51M	98.08M	72.83M
Total Debt	1.23B	958.72M	669.77M	687.64M	667.59M	677.51M
Total Liabilities	1.50B	1.24B	926.27M	930.01M	846.10M	818.63M
Stockholders Equity	491.81M	489.94M	441.79M	382.54M	316.14M	258.97M
Cash Flow
Free Cash Flow	80.87M	98.74M	135.51M	153.40M	154.69M	-10.73M
Operating Cash Flow	190.31M	188.93M	209.05M	215.94M	208.18M	36.46M
Investing Cash Flow	-188.94M	-108.95M	-52.84M	-81.54M	-58.35M	-41.06M
Financing Cash Flow	116.84M	-6.51M	-163.62M	-115.65M	-127.38M	11.27M

Brunello Cucinelli SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BC, the sentiment is Negative. The current price of 79.12 is below the 20-day moving average (MA) of 89.06, below the 50-day MA of 91.75, and below the 200-day MA of 97.19, indicating a bearish trend. The MACD of -4.33 indicates Positive momentum. The RSI at 26.79 is Positive, neither overbought nor oversold. The STOCH value of 7.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	€13.04B	21.31	18.89%	2.32%	0.87%	-5.61%
FPE	72 Outperform	€226.78M	18.33	―	2.17%	40.64%	104.21%
BC	62 Neutral	€5.33B	40.39	28.41%	0.95%	10.35%	15.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFER	55 Neutral	€1.05B	-7.97	-20.18%	1.24%	-8.65%	-1512.63%