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Geox SpA (IT:GEO)
:GEO

Geox SpA (GEO) AI Stock Analysis

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IT

Geox SpA

(LSE:GEO)

Rating:44Neutral
Price Target:
€0.50
▲(61.29%Upside)
Geox SpA's overall stock score is primarily impacted by poor financial performance and a negative valuation. The technical analysis also indicates bearish momentum. The combination of these factors points to significant risks for investors, necessitating strategic improvements in financial stability and market performance.

Geox SpA (GEO) vs. iShares MSCI Italy ETF (EWI)

Geox SpA Business Overview & Revenue Model

Company DescriptionGeox S.p.A. creates, produces, promotes, and distributes footwear and apparel to retailers and end consumers in Italy, Europe, North America, and internationally. It operates in two segments, Footwear and Apparel. The company offers shoes and apparel under the Geox brand name through multi-brand selling points, mono-brand shops, Geox Shops, and e-commerce channels. As of December 31, 2021, it operated 768 Geox Shops, including 304 franchised stores and 350 directly operated stores. The company is headquartered in Montebelluna, Italy. Geox S.p.A. is a subsidiary of LIR S.r.l.
How the Company Makes MoneyGeox SpA generates revenue primarily through the sale of its footwear and apparel products. The company's revenue streams are mainly derived from wholesale and retail operations. Wholesale operations involve selling products to third-party retailers and distributors, while retail operations include sales through Geox-owned stores and e-commerce platforms. Geox's innovative breathable technology, which is a key differentiator in its product offerings, allows the company to command premium pricing and maintain a competitive edge. Additionally, strategic partnerships and collaborations with other brands and designers also contribute to its revenue generation. The company's global supply chain and distribution network further support its ability to reach a wide customer base and drive sales across different regions.

Geox SpA Financial Statement Overview

Summary
Geox SpA's financial performance indicates significant challenges, characterized by declining revenues and persistent profitability issues. High leverage and negative return on equity suggest financial instability. While cash flows from operations remain positive, the company's ability to generate consistent free cash flow is in question, highlighting the need for strategic improvements in revenue growth and cost management.
Income Statement
45
Neutral
Geox SpA has faced declining revenue over recent years, with a drop from €805.9 million in 2019 to €663.8 million in 2024. The gross profit margin has also decreased, indicating challenges in cost management. The net profit margin remains negative, pointing to ongoing profitability issues. Despite some years of positive EBITDA, the EBIT has been negative in multiple years, underscoring operational inefficiencies.
Balance Sheet
50
Neutral
The company's balance sheet shows high leverage with a debt-to-equity ratio consistently above 4.0, raising concerns about financial stability. Stockholders' equity has declined over recent years. However, the equity ratio remains positive, indicating a moderate level of asset financing through equity. Return on equity is negative, reflecting ongoing net losses.
Cash Flow
55
Neutral
Geox SpA's cash flow analysis reveals positive operating cash flows in recent years, but free cash flow growth is inconsistent, with a decrease in 2024. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to accounting profits. However, free cash flow to net income ratio reflects ongoing challenges in converting profits into free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue663.76M719.57M735.52M608.91M534.90M
Gross Profit335.20M295.42M349.23M284.26M232.37M
EBITDA57.44M83.61M70.47M32.10M-12.75M
Net Income-30.34M-6.45M-13.02M-59.69M-127.55M
Balance Sheet
Total Assets685.97M777.98M790.38M718.24M857.13M
Cash, Cash Equivalents and Short-Term Investments30.36M70.15M24.30M45.66M83.13M
Total Debt332.60M389.44M336.28M344.06M444.22M
Total Liabilities618.07M687.39M682.17M593.65M689.92M
Stockholders Equity67.90M90.59M108.21M124.58M167.21M
Cash Flow
Free Cash Flow39.99M45.46M68.69M68.43M-37.57M
Operating Cash Flow56.48M64.17M83.94M79.80M-26.60M
Investing Cash Flow-14.68M-20.33M-26.25M-12.10M-20.26M
Financing Cash Flow-85.14M2.35M-79.30M-106.03M82.94M

Geox SpA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.31
Price Trends
50DMA
0.33
Negative
100DMA
0.35
Negative
200DMA
0.42
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
41.81
Neutral
STOCH
34.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:GEO, the sentiment is Negative. The current price of 0.31 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.33, and below the 200-day MA of 0.42, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 34.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:GEO.

Geox 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
62
Neutral
$16.72B10.85-7.48%3.11%1.66%-24.52%
ITGEO
44
Neutral
€112.41M-38.29%-7.76%-366.10%
€12.95B20.2318.81%2.34%
€17.52B24.9915.32%1.13%
€113.44B62.29-6.13%0.93%
DE8BU
€6.99B57.4525.65%0.80%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:GEO
Geox SpA
0.31
-0.24
-44.18%
GB:0QII
Moncler S.p.A.
47.84
-8.50
-15.09%
GB:0NUX
Prysmian SpA
61.10
5.41
9.71%
GB:0IU8
SAFRAN SA
272.20
72.12
36.05%
DE:8BU
Brunello Cucinelli SpA
100.95
7.49
8.01%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 06, 2025