Prada (PRDSY) AI Stock Analysis

• Market Cap: $16.40B
• Dividend Yield: 2.85%
• Average Volume (3M): 1.16K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.60
• Revenue Growth: 14.98%
• EPS Growth: 25.10%
• Country: US
• Employees: 15,216
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 1,279,412,000
• 10 Day Avg. Volume: 3,466
• 30 Day Avg. Volume: 1,155
• PEG Ratio: 1.16
• Price to Book (P/B): 7.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.94
• 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: $15.00
• Price Target Upside: 17.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $14.50 ▲(13.81%Upside)

Prada's strong financial performance, characterized by robust revenue growth and profitability, is the most significant factor driving its stock score. While the earnings call provided a positive outlook, technical indicators suggest caution, and the valuation appears fair. The lack of new corporate events also supports the focus on financial and strategic elements.

Prada Business Overview & Revenue Model

Company Description

Prada 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 Money

Prada generates revenue primarily through the sale of luxury goods, including leather goods like handbags and wallets, apparel, footwear, and accessories. The company's revenue model is heavily reliant on its retail operations, with a significant portion of sales coming from its directly operated stores across the globe. In addition to retail, Prada also earns from wholesale distribution to high-end department stores and specialty boutiques. Licensing agreements, particularly in eyewear and fragrances, contribute to its revenue streams. Prada's earnings are bolstered by strategic partnerships and collaborations that enhance brand visibility and market reach. The company also invests in marketing and digital initiatives to drive sales and maintain its prestigious market position.

Prada Financial Statement Overview

Summary

Prada exhibits strong financial performance with high profitability margins and robust revenue growth. The balance sheet is stable with a favorable equity ratio and manageable debt levels, while cash flow management is effective. These factors contribute to a positive financial outlook, though the industry's capital intensity poses some risk.

Income Statement

Prada demonstrates strong profitability with a high gross profit margin at approximately 80% and a robust net profit margin improving from around 5.5% in 2023 to 15.4% in 2024. The company shows a healthy revenue growth trend of 14.9% from 2023 to 2024. EBIT and EBITDA margins are also strong, indicating efficient operational management. However, the company experienced slower growth in earlier years, which slightly tempers the overall score.

Balance Sheet

Prada maintains a balanced financial structure with a Debt-to-Equity ratio of 0.63, indicating manageable leverage. The equity ratio stands at around 51.4%, showing solid equity financing. The Return on Equity (ROE) is impressive at 19.1% for 2024, reflecting strong profitability relative to equity. Potential risks include rising debt levels and the industry’s requirement for substantial capital investments.

Cash Flow

Prada's cash flow position is healthy, with a significant increase in free cash flow from 2023 to 2024 by 201.3%, demonstrating improved cash generation capabilities. The Operating Cash Flow to Net Income ratio is strong, indicating effective conversion of profit into cash. The Free Cash Flow to Net Income ratio also shows efficient cash utilization, though past years had variations due to fluctuating capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.43B	4.73B	4.13B	3.37B	2.42B
Gross Profit	4.34B	3.80B	2.63B	2.55B	1.74B
EBITDA	2.01B	1.73B	1.42B	1.09B	648.73M
Net Income	838.91M	671.03M	465.19M	294.25M	-54.14M
Balance Sheet
Total Assets	8.55B	7.62B	7.35B	6.96B	6.53B
Cash, Cash Equivalents and Short-Term Investments	1.01B	689.52M	1.09B	981.79M	442.39M
Total Debt	2.79B	2.60B	2.65B	2.79B	2.89B
Total Liabilities	4.13B	3.74B	3.86B	3.83B	3.68B
Stockholders Equity	4.40B	3.86B	3.47B	3.11B	2.83B
Cash Flow
Free Cash Flow	1.19B	395.61M	868.84M	923.90M	482.86M
Operating Cash Flow	1.65B	1.16B	1.11B	1.14B	592.42M
Investing Cash Flow	-462.45M	-759.19M	-246.75M	-137.26M	-149.91M
Financing Cash Flow	-875.47M	-775.73M	-775.04M	-494.73M	-395.27M

Prada Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.74
• 50DMA: Positive
• 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 PRDSY, the sentiment is Neutral. The current price of 12.74 is above the 20-day moving average (MA) of 12.41, above the 50-day MA of 12.73, and below the 200-day MA of 14.22, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 74.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRDSY.

Prada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	76 Outperform	$17.56B	24.97	29.49%	1.26%	6.75%	19.71%
SCI	76 Outperform	$11.62B	22.25	32.71%	1.58%	2.40%	4.07%
ZGN	76 Outperform	$3.65B	27.51	8.89%	1.49%	2.26%	-37.52%
PRDSY	74 Outperform	$16.40B	18.07	20.60%	2.85%	14.98%	25.10%
TPR	72 Outperform	$20.28B	25.69	40.27%	1.43%	2.67%	1.31%
MTN	71 Outperform	$6.18B	21.71	30.55%	5.23%	2.38%	6.01%
Sector *	57 Neutral	HK$24.54B	3.87	-2.03%	6.53%	-0.31%	-67.70%