Italian Design Brands SpA (DEX) AI Stock Analysis

• Market Cap: €100.17M
• Dividend Yield: N/A
• Average Volume (3M): 35.88K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.10
• 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: €4.50 ▼(-26.95% 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 Profit Margins

High gross profit margins indicate effective cost management and pricing power, which can support long-term profitability and competitive positioning.

Diverse Revenue Streams

A diverse revenue model with multiple streams reduces dependency on any single source, enhancing resilience against market fluctuations and supporting sustainable growth.

Brand Visibility

Active participation in trade shows and strategic partnerships increases brand visibility, potentially driving sales and expanding market reach over the long term.

Negative Factors

Declining Revenue Growth

A decline in revenue growth may indicate challenges in market demand or competitive pressures, potentially impacting future earnings and market position.

Rising Debt Levels

Increased leverage can strain financial flexibility and elevate risk, potentially affecting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Significant cash flow challenges can hinder operational efficiency and limit the company's ability to fund new projects or respond to market changes.

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 demonstrates strong revenue growth and effective cost management, as evidenced by a high gross profit margin. However, declining profitability margins and reduced return on equity indicate challenges in maintaining profitability. The balance sheet shows moderate leverage, but cash flow metrics highlight potential liquidity issues. Overall, the company is on a growth trajectory but needs to address profitability and cash flow management to sustain its financial health.

Income Statement

The company shows a strong revenue growth trajectory with a TTM growth rate of 1.36%. However, profitability margins have declined, with the TTM net profit margin at 2.75%, down from 5.52% in the previous year. The gross profit margin remains robust at 65.94%, indicating effective cost management. Despite the decline in EBIT and EBITDA margins, the company maintains a positive revenue growth outlook.

Balance Sheet

The balance sheet reflects moderate leverage with a TTM debt-to-equity ratio of 0.89, which is an improvement from previous years. However, the return on equity has decreased to 5.56%, indicating reduced profitability on shareholders' equity. The equity ratio is stable, suggesting a balanced asset structure, but the lower ROE highlights potential challenges in generating returns.

Cash Flow

The cash flow statement shows a significant decline in free cash flow growth at -79.47% TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio is low at 0.08, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is 0.40, reflecting a need for improved cash flow management.

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: Positive
• RSI: Positive
• STOCH: Positive

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 4.41, above the 50-day MA of 5.26, and below the 200-day MA of 6.72, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 19.60 is Positive, neither overbought nor oversold. The STOCH value of 11.04 is Positive, 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	€213.82M	17.29	―	2.17%	40.64%	104.21%
BEC	67 Neutral	€162.82M	14.44	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	€241.68M	7.13	―	6.03%	12.02%	-8.17%
DEX	51 Neutral	€100.17M	23.54	―	―	-2.52%	-82.50%