Moncler S.p.A. (MONC) AI Stock Analysis

• Market Cap: €14.82B
• Dividend Yield: 2.37%
• Average Volume (3M): 735.26K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.15
• Revenue Growth: 4.18%
• EPS Growth: 4.35%
• Country: IT
• Employees: 7,354
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.36
• Shares Outstanding: 274,805,970
• 10 Day Avg. Volume: 746,073
• 30 Day Avg. Volume: 735,257
• PEG Ratio: -27.52
• Price to Book (P/B): 4.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.70
• 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: €63.77
• Price Target Upside: 16.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: €60.00 ▲(9.17%Upside)

Moncler S.p.A. demonstrates a strong financial position with excellent profitability and cash flow generation, which significantly contributes to the overall score. Technical analysis indicates mixed signals, with a slight bearish sentiment due to recent price movements. Valuation metrics show the stock is fairly valued with a reasonable P/E ratio and a moderate dividend yield, supporting investor interest.

Positive Factors

Brand desirability

Moncler enjoys high brand desirability, especially among Asian customers, and has high-single-digit growth potential.

Financial performance

Moncler delivered a sizeable 7% beat at the Q4 group sales level and 4% beat at the FY24 EBIT level, resulting in 29.5% FY24 EBIT margin ahead of 29.0% consensus.

Market position

Moncler is now trading on more attractive PE multiples compared to the sector while providing above sector sales growth.

Negative Factors

Industry pressures

Near-term industry pressures in China and difficult comparables until 1Q25 could pressure near-term earnings.

Valuation concerns

The stock's current premium valuation leaves limited upside if sales growth assumptions and stable margins prove to be about right.

Wholesale rationalisation

Further wholesale rationalisation is expected to hold back growth in Stone Island.

Moncler S.p.A. Business Overview & Revenue Model

Company Description

Moncler S.p.A., together with its subsidiaries, designs, produces, and distributes clothing and related accessories for men, women, and children under the Moncler and Stone Island brand names. Its product portfolio includes footwear products; leather goods, such as bags, backpacks, and accessories; and sunglasses, eyeglasses, frames, and men's and women's ski goggles under the Moncler Lunettes brand. The company also offers perfume for men and women. As of December 31, 2021, it operated 237 retail directly operated stores and 64 wholesale shop-in-shops. The company also sells its products through moncler.com, an online store. It serves in Italy, other European countries, Japan, the rest of Asia, and the Americas. The company was formerly known as Moncler S.r.l. and changed its name to Moncler S.p.A. in October 2013. Moncler S.p.A. was founded in 1952 and is headquartered in Milan, Italy.

How the Company Makes Money

Moncler S.p.A. generates revenue primarily through the sale of its luxury apparel and accessories. The company's key revenue streams include direct-to-consumer sales through its retail stores, online e-commerce platform, and wholesale distribution to select department stores and specialty retailers worldwide. Moncler also benefits from a strong brand image and loyal customer base, which allows it to maintain premium pricing for its products. Strategic partnerships and collaborations with designers and other brands further enhance its market presence and contribute to its revenue. Additionally, Moncler occasionally engages in limited edition releases and exclusive collections, which drive consumer interest and sales.

Moncler S.p.A. Financial Statement Overview

Summary

Moncler S.p.A. demonstrates impressive financial health, characterized by robust income growth, a strong balance sheet, and excellent cash flow generation. The company's income statement shows strong profitability with a high gross profit margin of 78% and a net profit margin of 20.6%. The conservative debt-to-equity ratio of 0.26 and high equity ratio of 78.9% reflect a stable financial structure. Strong cash flow generation and efficient cash management further enhance Moncler's financial standing. These factors collectively highlight Moncler's solid financial performance and growth potential.

Income Statement

Moncler S.p.A. demonstrates robust profitability with a consistent increase in revenue, evident from a revenue growth rate of approximately 4.2% in the latest year. The gross profit margin is strong at 78% for the latest annual period, reflecting efficient cost management. The net profit margin stands at 20.6%, indicating solid bottom-line performance. Both EBIT and EBITDA margins are healthy, reflecting operational efficiency and the company's ability to generate earnings before interest, taxes, depreciation, and amortization. Overall, the income statement portrays a company with strong profitability and growth potential.

Balance Sheet

Moncler S.p.A. maintains a conservative leverage position with a debt-to-equity ratio of 0.26, indicating low reliance on debt financing. The company reports a high equity ratio of 78.9%, demonstrating a strong capital structure with significant equity backing its total assets. Return on equity (ROE) is impressive at 17.8%, reflecting efficient use of shareholders' equity to generate profits. The balance sheet showcases financial stability and a solid foundation for growth, although there is a slight decline in total assets year-over-year.

Cash Flow

Moncler S.p.A. exhibits strong cash flow generation, with operating cash flow exceeding net income, indicating high-quality earnings. The free cash flow shows a growth rate of 12.7%, highlighting the company's ability to generate excess cash after capital expenditures. Both the operating cash flow to net income ratio and free cash flow to net income ratio are favorable, suggesting efficient cash management. Overall, the cash flow statement reflects a robust cash position, enabling potential reinvestment and shareholder returns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.11B	2.98B	2.60B	2.05B	1.44B
	Gross Profit
2.43B	2.30B	1.76B	1.37B	913.93M
	EBIT
916.32M	893.84M	774.55M	579.22M	368.82M
	EBITDA
1.25B	1.19B	1.04B	827.47M	569.52M
	Net Income Common Stockholders
639.60M	611.93M	606.70M	393.53M	300.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.26B	998.80M	882.25M	932.72M	923.50M
	Total Assets
5.50B	4.99B	4.64B	4.27B	2.76B
	Total Debt
957.31M	848.59M	912.78M	913.92M	713.27M
	Net Debt
-230.67M	-150.21M	30.52M	-18.80M	-210.23M
	Total Liabilities
1.92B	1.78B	1.74B	1.77B	1.13B
	Stockholders Equity
3.59B	3.21B	2.90B	2.50B	1.63B
Cash Flow		Free Cash Flow
832.37M	738.44M	492.72M	733.49M	313.89M
	Operating Cash Flow
1.02B	914.87M	662.58M	865.31M	406.45M
	Investing Cash Flow
-267.43M	-174.07M	-167.10M	-621.41M	-90.37M
	Financing Cash Flow
-535.17M	-596.63M	-391.25M	-345.18M	-151.54M

Moncler S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.96
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:MONC, the sentiment is Negative. The current price of 54.96 is below the 20-day moving average (MA) of 55.39, above the 50-day MA of 54.50, and above the 200-day MA of 53.86, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 48.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:MONC.

Moncler S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONC	73 Outperform	€14.82B	23.16	18.81%	2.37%	4.18%	4.35%
Sector *	62 Neutral	$6.93B	11.25	2.95%	3.88%	2.69%	-24.71%
0GY8		€50.70M	4.05	18.24%	―	―	―
0KHH		€118.27M	―	-38.29%	―	―	―
0P52		€927.79M	111.21	-10.16%	1.74%	―	―
8BU		€7.20B	60.47	25.65%	0.88%	―	―
ICOS	73 Outperform	€1.30B	26.78		1.46%	7.76%	-7.28%