Salvatore Ferragamo S.p.A. (SFER) AI Stock Analysis

• Market Cap: €973.35M
• Dividend Yield: 1.7%
• Average Volume (3M): 743.59K
• Price to Earnings (P/E): 112.5
• Beta (1Y): 1.07
• Revenue Growth: -8.65%
• EPS Growth: -1512.63%
• Country: IT
• Employees: 3,329
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.09
• Shares Outstanding: 168,790,000
• 10 Day Avg. Volume: 530,366
• 30 Day Avg. Volume: 743,586
• PEG Ratio: 0.05
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 11.22
• 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: €4.74
• Price Target Upside: -23.30% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 52 Neutral
• Price Target: €6.00 ▼(-2.91% Downside)

The overall stock score of 52 reflects significant financial challenges faced by Salvatore Ferragamo S.p.A., including declining revenues and profitability issues. While technical analysis indicates bullish momentum, the negative P/E ratio and lack of dividend yield suggest potential overvaluation. The company's financial performance is the most significant factor impacting the score.

Positive Factors

Negative Factors

Salvatore Ferragamo S.p.A. Business Overview & Revenue Model

Company Description

Salvatore Ferragamo S.p.A. (SFER) is an Italian luxury goods company renowned for its high-quality footwear, leather goods, apparel, and accessories. Founded in 1927 by the eponymous designer, the brand has established itself as a leading name in the luxury fashion sector, focusing on craftsmanship, innovation, and timeless design. The company operates in various sectors including fashion retail, luxury footwear, and leather goods, catering to a global clientele through a network of boutiques and a robust online presence.

How the Company Makes Money

Salvatore Ferragamo generates revenue primarily through the sale of luxury goods, with a significant portion coming from its footwear and leather goods segments. The company has a diverse revenue model that includes direct sales from owned boutiques, wholesale distribution to high-end department stores, and online retail. Key revenue streams consist of high-margin products such as shoes, handbags, and accessories, which are marketed to affluent consumers. In addition, Ferragamo benefits from partnerships with luxury retailers and collaborations that enhance brand visibility and reach. Seasonal collections, limited editions, and exclusive products also contribute to driving sales, while the company's strong brand heritage and reputation for quality help maintain customer loyalty and justify premium pricing.

Salvatore Ferragamo S.p.A. Financial Statement Overview

Summary

Salvatore Ferragamo S.p.A. is facing financial difficulties with declining revenues and profitability, as evidenced by negative EBIT and net income. The balance sheet shows moderate leverage but weakened equity, while cash flow remains positive, providing some stability.

Income Statement

Salvatore Ferragamo S.p.A. has faced declining revenues and profitability over recent years. The 2024 annual report shows a negative EBIT and net income, indicating operational challenges. Gross profit margin remains relatively stable but at lower levels compared to prior years. Revenue growth has been negative, and the net profit margin has suffered significantly due to losses.

Balance Sheet

The company's balance sheet indicates a moderate debt-to-equity ratio, suggesting a reasonable level of leverage. However, the equity ratio has declined, reflecting reduced financial stability. Return on equity has turned negative in 2024 due to net losses, highlighting profitability issues.

Cash Flow

Although Salvatore Ferragamo has faced operational challenges, it maintains positive operating cash flow, indicating some stability in its cash-generating capabilities. Free cash flow growth has been inconsistent, but there is a positive free cash flow in 2024, which is a positive sign amidst the earnings decline.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	985.91M	1.04B	1.16B	1.25B	1.14B	876.51M
Gross Profit	683.47M	740.01M	839.43M	901.12M	780.94M	551.31M
EBITDA	13.46M	130.50M	241.85M	287.84M	299.03M	122.08M
Net Income	-131.53M	-68.09M	26.06M	69.61M	78.65M	-66.40M
Balance Sheet
Total Assets	1.53B	1.70B	1.81B	1.72B	1.85B	1.71B
Cash, Cash Equivalents and Short-Term Investments	206.69M	238.19M	304.26M	401.35M	511.80M	328.16M
Total Debt	701.29M	789.64M	791.17M	604.59M	736.36M	753.91M
Total Liabilities	935.82M	1.08B	1.09B	944.88M	1.06B	1.00B
Stockholders Equity	596.79M	619.09M	721.17M	751.81M	764.31M	693.58M
Cash Flow
Free Cash Flow	62.57M	99.89M	45.76M	211.21M	331.64M	58.52M
Operating Cash Flow	120.53M	170.62M	117.50M	267.07M	376.13M	88.33M
Investing Cash Flow	-81.27M	-85.85M	-96.97M	-65.86M	-30.89M	-37.39M
Financing Cash Flow	-137.15M	-111.91M	-150.09M	-323.28M	-160.29M	47.26M

Salvatore Ferragamo S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SFER, the sentiment is Positive. The current price of 6.18 is above the 20-day moving average (MA) of 5.28, above the 50-day MA of 4.93, and above the 200-day MA of 5.85, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 71.85 is Negative, neither overbought nor oversold. The STOCH value of 86.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SFER.

Salvatore Ferragamo S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONC	77 Outperform	€13.92B	22.74	18.89%	2.51%	0.87%	-5.61%
PIRC	76 Outperform	€6.08B	12.18	8.98%	4.15%	2.47%	7.85%
FPE	72 Outperform	€224.62M	18.16	―	2.07%	40.64%	104.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BC	55 Neutral	€6.30B	47.76	28.41%	1.01%	10.35%	15.89%
SFER	52 Neutral	€973.35M	112.46	-20.18%	1.70%	-8.65%	-1512.63%