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Prada (PRDSY)
OTHER OTC:PRDSY
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Prada
(OTC:PRDSY)
73Outperform
Prada (PRDSY) vs. S&P 500 (SPY)
Market Cap
$15.03B
Dividend Yield1.59%
Average Volume (3M)3.03K
Price to Earnings (P/E)16.6
Beta (1Y)0.64
Revenue Growth14.98%
EPS Growth25.10%
CountryUS
Employees15,216
SectorConsumer Cyclical
Sector Strength55
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.71
Shares Outstanding1,279,412,000
10 Day Avg. Volume8,533
30 Day Avg. Volume3,028
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)N/A
Price to Sales (P/S)4.19
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Prada Business Overview & Revenue Model
Company DescriptionPrada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and Africa. It offers its products under the Prada, Miu Miu, Church's, and Car Shoe brands. The company also provides eyewear and fragrances under licensing agreements, as well as operates in the food sector under the Marchesi 1824 brand. As of December 31, 2021, it had 635 directly operated stores. The company also sells its products through a network of approximately 26 franchise operated stores; multi-brand stores; luxury department stores; independent retailers; and online retailers. In addition, it engages in the event management and real estate business, as well as operates duty-free stores. The company was founded in 1913 and is headquartered in Milan, Italy. Prada S.p.A. is a subsidiary of Prada Holding S.p.A.
How the Company Makes MoneyPrada makes money primarily through the design, production, and sale of luxury fashion goods. The company's revenue streams include retail sales from its directly operated stores, wholesale distribution to high-end department stores and specialty boutiques, and e-commerce sales through its website and third-party platforms. Prada also generates income from licensing agreements, where it authorizes other companies to produce and sell products under its brand name. Significant factors contributing to its earnings include its strong brand recognition, innovative product design, and strategic location of retail outlets in major fashion capitals and affluent markets. Additionally, Prada benefits from its vertically integrated business model, which allows for greater control over production, quality, and distribution.
Prada Financial Statement Overview
Summary
Prada shows strong financial performance with significant revenue growth and high profitability. The balance sheet is solid with manageable leverage, while cash flows indicate effective cash generation, albeit with some fluctuations. Continued focus on reducing debt and enhancing free cash flow will further strengthen the company's financial position.Income Statement
Prada's income statement displays robust growth and profitability. The gross profit margin is strong at 80.42%, and the net profit margin stands at 14.20%, indicating effective cost management. The revenue growth rate from 2022 to 2023 is 14.30%, highlighting significant top-line expansion. EBIT and EBITDA margins are healthy at 22.47% and 36.50%, respectively, suggesting efficient operational performance.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.68, indicating moderate leverage. The return on equity is impressive at 17.40%, showcasing effective use of shareholder capital. The equity ratio of 50.62% demonstrates a balanced capital structure, although there is room for improvement in reducing debt levels.78
Positive
Cash Flow
Cash flow analysis reveals strong operational cash flows with an operating cash flow to net income ratio of 1.72, indicating good cash generation relative to profits. However, the free cash flow decreased by 54.47% from the previous year, which may signal higher capital expenditures or changes in working capital requirements. The free cash flow to net income ratio is 0.59, reflecting prudent cash management, but highlighting potential for improvement.72
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.93B | 4.73B | 4.13B | 3.37B | 2.42B | 3.23B | Gross Profit |
| 4.04B | 3.80B | 2.63B | 2.55B | 1.74B | 2.32B | EBIT |
| 1.20B | 1.06B | 834.53M | 467.67M | 1.10M | 293.96M | EBITDA |
| 686.38M | 1.73B | 1.42B | 1.09B | 648.73M | 972.58M | Net Income Common Stockholders |
| 383.50M | 671.03M | 465.19M | 294.25M | -54.14M | 255.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 362.28M | 689.52M | 1.09B | 981.79M | 442.39M | 421.07M | Total Assets |
| 2.94B | 7.62B | 7.35B | 6.96B | 6.53B | 7.04B | Total Debt |
| 168.04M | 2.60B | 2.65B | 2.79B | 2.89B | 3.24B | Net Debt |
| -194.25M | 1.91B | 1.57B | 1.81B | 2.44B | 2.82B | Total Liabilities |
| 1.11B | 3.74B | 3.86B | 3.83B | 3.68B | 4.05B | Stockholders Equity |
| 1.82B | 3.86B | 3.47B | 3.11B | 2.83B | 2.97B |
| Cash Flow | Free Cash Flow | ||||
| 764.83M | 395.61M | 868.84M | 923.90M | 482.86M | 498.94M | Operating Cash Flow |
| 1.55B | 1.16B | 1.11B | 1.14B | 592.42M | 809.89M | Investing Cash Flow |
| -783.25M | -759.19M | -246.75M | -137.26M | -149.91M | -302.26M | Financing Cash Flow |
| -866.03M | -775.73M | -775.04M | -494.73M | -395.27M | -692.49M |
Prada Technical Analysis
Negative
12.33
Price Trends
15.56
Negative
15.52
Negative
14.83
Negative
Market Momentum
-0.67
Positive
31.87
Neutral
13.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDSY, the sentiment is Negative. The current price of 12.33 is below the 20-day moving average (MA) of 13.76, below the 50-day MA of 15.56, and below the 200-day MA of 14.83, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 31.87 is Neutral, neither overbought nor oversold. The STOCH value of 13.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRDSY.
Prada Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $12.87B | 18.99 | 27.57% | 1.58% | 5.23% | 24.63% | |
76 Outperform | $10.82B | 21.25 | 32.22% | 1.63% | 2.11% | 0.05% | |
73 Outperform | $15.03B | 16.58 | 20.60% | 1.59% | 14.98% | 25.10% | |
72 Outperform | $13.93B | 19.53 | 39.82% | 2.08% | 0.74% | -12.69% | |
71 Outperform | $5.40B | 21.21 | 38.12% | 6.76% | 3.57% | 13.75% | |
65 Neutral | $2.87B | 21.24 | 8.89% | 1.83% | 2.26% | -37.52% | |
59 Neutral | $11.76B | 10.11 | -0.70% | 3.92% | 1.27% | -16.30% |
* Consumer Cyclical Sector Average
Performance Comparison
PRDSY
Prada
12.33
-2.32
-15.84%
TPR
Tapestry
63.92
23.85
59.52%
RL
Ralph Lauren
194.67
36.94
23.42%
SCI
Service International
75.13
6.39
9.30%
MTN
Vail Resorts
139.79
-76.01
-35.22%
ZGN
Ermenegildo Zegna
6.64
-4.54
-40.61%
Prada Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -30.02% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The Prada Group experienced a strong financial year with significant revenue growth, robust financial performance, and remarkable growth for Miu Miu. However, there were challenges in the Chinese market and some FX-related impacts on gross margin. The overall sentiment is positive, with confidence in continued growth.Highlights
Strong Revenue Growth
Prada Group closed 2024 with revenues at EUR5.4 billion, up 17% at constant exchange rates.
Robust Financial Performance
EBIT reached EUR1.28 billion with a margin of 23.6% and the group completed the year with a net cash position of EUR600 million.
Miu Miu's Remarkable Growth
Miu Miu reported a remarkable organic performance, up 93%, with retail sales in excess of EUR1.2 billion.
Successful Sustainability Initiatives
The company reduced Scope 1 and 2 greenhouse gas emissions by 61% and launched a three-year plan to convert raw materials to lower-impact alternatives.
Strong Global Retail Performance
Retail sales totaled EUR4.8 billion, up 18% versus fiscal year '23 at constant FX, driven by like-for-like full price sales.
Lowlights
Challenges in the China Market
Observed a slowdown in China starting the second half of the year, with Chinese consumer confidence and traffic not showing significant improvement.
Gross Margin Impacted by FX
Gross margin reached 79.8%, 60 basis points lower than fiscal year '23 due to FX impact.
Continued Challenges in Certain Regions
Some regions deteriorated, and consumer clusters became more cautious, highlighting a challenging market environment.
Company Guidance
In the fiscal year 2024, Prada Group reported strong financial performance, with revenues reaching EUR 5.4 billion, representing a 17% increase at constant exchange rates. The company's EBIT was EUR 1.28 billion, yielding a margin of 23.6%, and they ended the year with a net cash position of EUR 600 million. Retail sales were a key driver, totaling EUR 4.8 billion, up 18%, with Miu Miu's retail sales growing by an impressive 93%. Notably, Asia Pacific saw a 13% increase in retail sales, while Japan experienced a 46% rise. Gross margin slightly decreased to 79.8%, while the EBIT margin expanded by 110 basis points. For 2025, Prada Group plans to continue investing in brand growth and infrastructure, with expected CapEx around EUR 550 million, while maintaining a focus on sustainable long-term growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.