Geox SpA (GEO) AI Stock Analysis

• Market Cap: €117.72M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -5.49%
• EPS Growth: -62.25%
• Country: IT
• Employees: 2,454
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.02
• Shares Outstanding: 366,904,540
• 10 Day Avg. Volume: 1,060,223
• 30 Day Avg. Volume: 1,057,566
• PEG Ratio: -0.01
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 3.51
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: €0.50 ▲(61.29% Upside)

Geox SpA's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The negative P/E ratio further underscores valuation concerns, making the stock less attractive.

Positive Factors

Innovative Product Technology

Geox's unique breathable technology is a key competitive advantage, fostering brand loyalty and potentially driving long-term sales growth.

Multi-Channel Distribution Strategy

A robust multi-channel strategy enhances market reach and resilience, allowing Geox to adapt to changing consumer behaviors and capture diverse revenue streams.

Positive Operating Cash Flows

Consistent positive operating cash flows indicate strong cash generation ability, supporting ongoing operations and potential reinvestment in growth initiatives.

Negative Factors

Declining Revenue

Persistent revenue decline suggests challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

High Leverage

High leverage can strain financial flexibility and increase risk, limiting the company's ability to invest in growth or weather economic downturns.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and cost management challenges, which may hinder long-term financial health and shareholder returns.

Geox SpA Business Overview & Revenue Model

Company Description

Geox SpA is an Italian footwear and apparel company renowned for its innovative breathable footwear technology. Founded in 1995, the company primarily operates in the fashion and retail sectors, offering a wide range of products including shoes, clothing, and accessories for men, women, and children. Geox is particularly recognized for its patented 'breathable' technology that allows moisture to escape while preventing water from entering, catering to consumers seeking comfort and quality in their footwear.

How the Company Makes Money

Geox generates revenue primarily through the sale of its footwear and apparel products across global retail channels. The company operates a multi-channel distribution strategy that includes branded retail stores, e-commerce platforms, and wholesale partnerships with third-party retailers. Key revenue streams include direct sales from Geox-owned stores and online platforms, as well as wholesale distribution to department stores and specialty retailers. Significant partnerships with international distributors and franchise agreements further enhance Geox's market reach. Additionally, the company invests in marketing and product innovation to attract customers, driving sales through seasonal collections and targeted promotional campaigns.

Geox SpA Financial Statement Overview

Summary

Geox SpA faces significant financial challenges, with declining revenues and persistent profitability issues. High leverage and negative return on equity suggest financial instability. While operating cash flows are positive, inconsistent free cash flow growth highlights the need for strategic improvements.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	496.02M	663.76M	719.57M	735.52M	608.91M	534.90M
Gross Profit	218.33M	335.20M	295.42M	349.23M	284.26M	232.37M
EBITDA	31.74M	57.44M	83.61M	78.00M	32.10M	-12.75M
Net Income	-17.34M	-30.34M	-6.45M	-13.02M	-62.15M	-128.21M
Balance Sheet
Total Assets	673.56M	685.97M	777.98M	790.38M	718.24M	857.13M
Cash, Cash Equivalents and Short-Term Investments	23.09M	30.36M	77.34M	28.35M	48.49M	86.10M
Total Debt	348.02M	332.60M	389.44M	336.28M	339.06M	444.22M
Total Liabilities	594.19M	618.07M	687.39M	682.17M	593.65M	689.92M
Stockholders Equity	79.37M	67.90M	90.59M	108.21M	124.58M	167.21M
Cash Flow
Free Cash Flow	42.83M	39.99M	45.46M	68.69M	68.43M	-37.57M
Operating Cash Flow	53.34M	56.48M	64.17M	83.94M	79.80M	-26.60M
Investing Cash Flow	-18.51M	-14.68M	-20.33M	-26.25M	-12.10M	-20.26M
Financing Cash Flow	-29.05M	-85.14M	2.35M	-79.30M	-106.03M	82.94M

Geox SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.31
• 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:GEO, the sentiment is Negative. The current price of 0.31 is above the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.32, and below the 200-day MA of 0.33, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 43.01 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MN	74 Outperform	€542.95M	9.61	16.46%	6.40%	0.29%	-4.85%
SFL	71 Outperform	€696.24M	14.94	11.48%	―	-0.76%	2341.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GEO	43 Neutral	€117.72M	-4.45	-25.42%	―	-5.49%	-62.25%