Italian Design Brands SpA (DEX) AI Stock Analysis

• Market Cap: €104.20M
• Dividend Yield: N/A
• Average Volume (3M): 35.88K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.07
• Revenue Growth: -2.52%
• EPS Growth: -82.50%
• Country: IT
• Employees: 785
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.07
• Shares Outstanding: 26,926,298
• 10 Day Avg. Volume: 87,737
• 30 Day Avg. Volume: 35,881
• PEG Ratio: -0.32
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 7.22
• 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: €10.40
• Price Target Upside: 68.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.28
• Revenue Forecast (FY): €287.54M

• Rating: 51 Neutral
• Price Target: €4.00 ▼(-35.06% Downside)

The overall stock score is primarily influenced by the company's mixed financial performance and bearish technical indicators. The high P/E ratio and lack of dividend yield further weigh on the score. Addressing revenue growth and cash flow issues, along with improving market momentum, are critical for enhancing the stock's attractiveness.

Positive Factors

Strong gross margin

A sustained gross margin near 66% implies durable pricing power and efficient product sourcing/manufacturing in the premium furnishings niche. That buffer supports investment in design, channels and brand building, helping protect operating margins during revenue softness.

Diversified sales channels and client mix

Serving both professional (designers, architects, projects) and retail channels spreads revenue across project and consumer demand, reducing customer concentration. This multi-channel model supports resilience and scalable international expansion for the brand portfolio over months.

Balanced capital structure provides flexibility

An equity ratio around 30% with moderate leverage historically provides financing capacity for capex and product investment without immediate refinancing stress. This structural balance supports execution of growth initiatives while retaining some debt headroom.

Negative Factors

Declining revenue and compressed net margins

Falling top-line growth combined with shrinking net margins reduces reinvestment capacity and long-term profitability. For a design-led furniture group, sustained revenue weakness undermines scale benefits and pressures returns on new collections and channel expansion.

Weak cash generation and conversion

Severely negative FCF growth and very low OCF-to-net-income signal poor cash conversion. Persistent cash deficits constrain capex, working capital and debt service, forcing either external financing or cutbacks that impair medium-term competitive initiatives and growth execution.

Rising leverage and falling ROE

Higher leverage alongside declining ROE indicates weakening capital efficiency and greater financial risk. This combination reduces strategic flexibility, increases sensitivity to demand or interest shocks, and can erode shareholder returns over the coming quarters.

Italian Design Brands SpA Business Overview & Revenue Model

Company Description

Italian Design Brands SpA (DEX) is a leading player in the Italian design sector, specializing in the development, distribution, and promotion of high-quality furniture and home decor products. The company operates across various sectors, including residential, commercial, and hospitality design, offering a diverse portfolio of brands that embody Italian craftsmanship and innovative design. DEX focuses on providing bespoke solutions that cater to the evolving needs of its clients, ensuring a blend of aesthetic appeal and functionality in all its offerings.

How the Company Makes Money

Italian Design Brands SpA generates revenue primarily through the sale of its branded furniture and home decor products to both domestic and international markets. Key revenue streams include direct sales through retail channels, e-commerce, and partnerships with distributors and wholesalers. The company also engages in collaborative projects with architects and designers, which can result in lucrative contracts for tailored design solutions. Additionally, DEX benefits from strategic partnerships with other design firms and participation in trade shows, which enhance brand visibility and drive sales. The combination of product sales and service contracts forms the backbone of its revenue model.

Italian Design Brands SpA Financial Statement Overview

Summary

Italian Design Brands SpA exhibits a mixed financial performance. Strong gross profit margins are overshadowed by declining revenue growth and net profit margins. The balance sheet shows moderate leverage, but increasing debt levels and declining ROE pose risks. Cash flow challenges are evident, with negative free cash flow growth and low cash conversion ratios.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 5.66%, which is concerning. However, the gross profit margin remains strong at 65.94%, indicating efficient cost management. The net profit margin has decreased to 2.75% in the TTM, reflecting reduced profitability. Historical data shows fluctuating EBIT and EBITDA margins, with a notable decline in the TTM period. Overall, while the company maintains strong gross margins, declining revenue and net margins are areas of concern.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has increased to 0.89 in the TTM, indicating higher leverage compared to previous years. Return on equity has decreased to 5.56% in the TTM, showing reduced efficiency in generating returns from equity. The equity ratio stands at 30.06%, suggesting a balanced capital structure. While the company has managed debt levels reasonably well, the increase in leverage and decline in ROE are potential risks.

Cash Flow

The cash flow statement reveals significant challenges. The TTM period shows a negative free cash flow growth rate of -236.88%, indicating cash flow issues. The operating cash flow to net income ratio is low at 0.08, suggesting weak cash generation relative to net income. The free cash flow to net income ratio is 0.40, further highlighting cash flow constraints. Overall, the company's cash flow position is weak, with negative free cash flow growth and low cash conversion ratios.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	312.83M	324.38M	289.78M	199.48M	145.28M	110.19M
Gross Profit	228.77M	197.98M	97.30M	74.89M	47.87M	38.99M
EBITDA	27.74M	57.82M	64.48M	12.65M	26.56M	15.34M
Net Income	4.25M	17.90M	28.01M	-5.93M	11.40M	8.82M
Balance Sheet
Total Assets	535.05M	471.12M	475.46M	274.37M	208.96M	217.07M
Cash, Cash Equivalents and Short-Term Investments	46.75M	68.30M	70.08M	42.98M	33.33M	42.02M
Total Debt	166.68M	103.97M	183.47M	127.08M	73.66M	109.42M
Total Liabilities	374.26M	300.67M	321.08M	215.59M	144.86M	164.36M
Stockholders Equity	160.80M	170.45M	154.38M	58.78M	64.09M	52.71M
Cash Flow
Free Cash Flow	-5.73M	32.66M	12.69M	23.25M	25.72M	17.06M
Operating Cash Flow	3.11M	39.16M	19.81M	25.73M	28.40M	20.34M
Investing Cash Flow	-43.15M	-21.43M	-110.25M	-17.82M	-13.41M	-8.51M
Financing Cash Flow	45.95M	-25.51M	88.91M	1.73M	-23.69M	6.71M

Italian Design Brands SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DEX, the sentiment is Negative. The current price of 6.16 is above the 20-day moving average (MA) of 3.99, above the 50-day MA of 4.61, and below the 200-day MA of 6.37, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 35.60 is Neutral, neither overbought nor oversold. The STOCH value of 22.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:DEX.

Italian Design Brands SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	72 Outperform	€226.78M	18.33	―	2.17%	40.64%	104.21%
BEC	67 Neutral	€151.93M	13.57	21.11%	6.60%	-0.07%	-37.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TISG	59 Neutral	€225.25M	6.69	―	6.03%	12.02%	-8.17%
DEX	51 Neutral	€104.20M	24.49	―	―	-2.52%	-82.50%