Italian Design Brands SpA (DEX) AI Stock Analysis

• Market Cap: €180.41M
• Dividend Yield: N/A
• Average Volume (3M): 13.59K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.15
• Revenue Growth: 8.32%
• EPS Growth: -60.62%
• Country: IT
• Employees: 785
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.19
• Shares Outstanding: 26,926,298
• 10 Day Avg. Volume: 11,339
• 30 Day Avg. Volume: 13,594
• 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: €10.20
• Price Target Upside: 52.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: €7.50 ▲(12.28% Upside)

The overall stock score of 69 reflects strong revenue growth and improved gross profit margins, balanced by challenges in profitability and cash flow. Technical indicators suggest a neutral trend with potential overbought conditions. The valuation is fair, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Gross Margin Improvement

Improved gross margins suggest better cost management and pricing power, enhancing profitability and competitive positioning.

Leverage Reduction

Reduced leverage enhances financial stability and lowers risk, providing more flexibility for future investments and growth.

Negative Factors

Net Profit Margin Decline

Declining net profit margins indicate rising costs or inefficiencies, which could erode profitability and affect long-term sustainability.

Free Cash Flow Issues

Negative free cash flow growth suggests potential cash management challenges, which could impact the company's ability to fund operations and growth.

Return on Equity Decline

A declining return on equity reflects reduced profitability and efficiency in using shareholder funds, potentially impacting investor confidence.

Italian Design Brands SpA Business Overview & Revenue Model

Company Description

Dexelance S.p.A. develops and promotes a hub of Italian design furniture and furnishings. The company offers furniture products under the Gervasoni, Meridiani, SabaItalia, and Gamma Arredamenti International brands; kitchen products and systems under the Cubo Design brand; lighting products under the Davide Groppi, Flexalighting, and Axolight brands. It also offers luxury furniture under the Cenacchi International and Modar brands. The company was formerly known as Italian Design Brands S.p.A. and changed its name to Dexelance S.p.A. in May 2024. Dexelance S.p.A. was founded in 2015 and is based in Milan, Italy.

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 shows strong revenue growth and improved gross profit margins. However, challenges in maintaining net profitability and cash flow stability are evident. The balance sheet indicates a healthier leverage position, but declining return on equity suggests potential profitability concerns.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 33.6% in 2023 to 61.0% in 2024. However, net profit margin has decreased from 9.7% in 2023 to 5.5% in 2024, indicating rising costs or inefficiencies. The EBIT and EBITDA margins have also declined, suggesting potential operational challenges.

Balance Sheet

The debt-to-equity ratio has improved from 0.76 in 2023 to 0.61 in 2024, indicating a reduction in leverage. However, the return on equity has decreased from 18.1% in 2023 to 10.5% in 2024, reflecting lower profitability. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Operating cash flow has increased significantly, but free cash flow growth is negative at -10.6%, indicating potential cash management issues. The operating cash flow to net income ratio is relatively low, suggesting that the company may face challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	331.61M	324.38M	289.78M	199.48M	145.28M	110.19M
Gross Profit	218.66M	197.98M	97.30M	74.89M	47.87M	38.99M
EBITDA	34.75M	57.82M	64.48M	12.65M	26.56M	15.34M
Net Income	9.11M	17.90M	28.01M	-5.93M	11.40M	8.82M
Balance Sheet
Total Assets	430.56M	471.12M	475.46M	274.37M	208.96M	217.07M
Cash, Cash Equivalents and Short-Term Investments	32.13M	68.30M	70.08M	42.98M	33.33M	42.02M
Total Debt	144.02M	103.97M	118.09M	127.08M	51.59M	76.16M
Total Liabilities	269.03M	300.67M	321.08M	215.59M	144.86M	164.36M
Stockholders Equity	161.52M	170.45M	154.38M	58.78M	64.09M	52.71M
Cash Flow
Free Cash Flow	4.19M	32.66M	12.69M	23.25M	25.72M	17.06M
Operating Cash Flow	10.52M	39.16M	19.81M	25.73M	28.40M	20.34M
Investing Cash Flow	21.22M	-21.43M	-110.25M	-17.82M	-13.41M	-8.51M
Financing Cash Flow	-32.08M	-25.51M	88.91M	1.73M	-23.69M	6.71M

Italian Design Brands SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.68
• 50DMA: Positive
• 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 Neutral. The current price of 6.68 is above the 20-day moving average (MA) of 6.55, above the 50-day MA of 6.66, and below the 200-day MA of 7.73, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 42.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
BEC	72 Outperform	€180.79M	15.23	23.27%	6.02%	3.16%	-32.78%
FPE	72 Outperform	€225.70M	17.72	―	2.03%	40.64%	104.21%
TISG	71 Outperform	€262.09M	15.66	12.06%	4.95%	1.87%	-67.41%
DEX	69 Neutral	€180.41M	19.69	―	―	8.32%	-60.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%