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Brunello Cucinelli (IT:BC)
:BC

Brunello Cucinelli SpA (BC) AI Stock Analysis

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IT

Brunello Cucinelli SpA

(Frankfurt:BC)

Rating:69Neutral
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 (BC) vs. iShares MSCI Italy ETF (EWI)

Brunello Cucinelli SpA Business Overview & Revenue Model

Company DescriptionBrunello 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 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 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
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.28B1.14B919.71M712.18M544.01M
Gross Profit
618.80M602.34M454.10M330.93M250.25M
EBIT
211.67M187.41M134.41M77.04M14.81M
EBITDA
367.50M343.37M270.05M191.98M87.20M
Net Income Common Stockholders
119.48M114.62M80.60M53.32M-32.07M
Balance SheetCash, Cash Equivalents and Short-Term Investments
182.75M107.83M117.51M98.08M72.83M
Total Assets
1.74B1.38B1.32B1.17B1.08B
Total Debt
958.72M669.77M687.64M667.59M677.51M
Net Debt
776.67M562.83M570.24M569.59M604.67M
Total Liabilities
1.24B926.27M930.01M846.10M818.63M
Stockholders Equity
489.94M441.79M382.54M316.14M258.97M
Cash FlowFree Cash Flow
98.74M135.51M153.40M154.69M-10.73M
Operating Cash Flow
188.93M209.05M215.94M208.18M36.46M
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
Neutral
Last Price106.20
Price Trends
50DMA
102.31
Positive
100DMA
110.42
Negative
200DMA
101.38
Positive
Market Momentum
MACD
1.18
Positive
RSI
51.01
Neutral
STOCH
59.57
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€14.88B22.5518.81%2.37%4.18%4.35%
ITPRY
71
Outperform
€16.51B23.5515.32%1.36%20.34%25.32%
ITSPM
70
Outperform
€4.43B14.4412.44%7.54%22.53%73.36%
ITBC
69
Neutral
€7.22B58.8225.65%0.89%12.21%4.24%
62
Neutral
$6.93B11.252.95%3.88%2.69%-24.71%
ITGEO
52
Neutral
€118.27M-38.29%-7.76%-366.10%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:BC
Brunello Cucinelli SpA
106.20
11.74
12.43%
IT:MONC
Moncler S.p.A.
53.32
-7.31
-12.05%
IT:GEO
Geox SpA
0.31
-0.28
-47.28%
IT:SPM
Saipem SpA
2.31
0.31
15.81%
IT:PRY
Prysmian SpA
58.28
0.29
0.50%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.