Prada (PRDSY) AI Stock Analysis

• Market Cap: $15.44B
• Dividend Yield: 1.74%
• Average Volume (3M): 1.91K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.65
• Revenue Growth: 12.12%
• EPS Growth: 12.85%
• Country: US
• Employees: 15,216
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 1,279,412,000
• 10 Day Avg. Volume: 4,013
• 30 Day Avg. Volume: 1,905
• PEG Ratio: 0.92
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 3.81
• P/FCF Ratio: 17.36
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 3.29
• Enterprise Value/Gross Profit: 4.11
• Enterprise Value/Ebitda: 8.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $12.50 ▲(9.08% Upside)

Prada's strong financial performance is the most significant factor driving its stock score, supported by robust revenue growth and profitability. However, technical analysis indicates bearish momentum, which poses a risk. The valuation is fair, providing a balanced outlook for investors.

Positive Factors

Revenue Growth

Prada's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Miu Miu's Performance

Miu Miu's robust sales growth showcases successful brand positioning and product appeal, contributing significantly to Prada's overall performance.

Cash Flow Generation

Strong cash flow generation enhances Prada's ability to invest in growth opportunities and maintain financial stability over the long term.

Negative Factors

Challenges in Key Markets

Declining sales in key markets like Japan and Europe due to reduced tourism may hinder Prada's growth and market penetration efforts.

Wholesale Channel Decline

A decline in wholesale sales reflects challenges in distribution strategy, potentially impacting Prada's revenue diversification and market reach.

Tourism-Related Downturn

Tourism downturns affect luxury sales, posing a risk to Prada's revenue, especially in tourist-dependent markets like Japan and Europe.

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 across various categories, including leather handbags, footwear, clothing, and accessories. The bulk of its revenue comes from direct retail sales through its extensive network of boutiques and flagship stores located in prime shopping districts worldwide. Additionally, the company benefits from e-commerce sales, which have been a growing segment. Key partnerships with high-end department stores and online luxury retailers also contribute to revenue streams. Seasonal collections and limited-edition products boost sales, while brand exclusivity and high-quality craftsmanship allow for premium pricing, enhancing profit margins. The company's strategic focus on brand expansion in emerging markets further supports its earnings growth.

Prada Financial Statement Overview

Summary

Prada demonstrates strong financial health with robust revenue growth, high profitability margins, and efficient cash flow management. The balance sheet is well-managed with moderate leverage and strong equity returns, positioning the company well for sustained growth in the luxury goods sector.

Income Statement

Prada's income statement reflects strong performance with a consistent increase in total revenue, reaching €5.43 billion in 2024. The gross profit margin is robust at 79.8%, and the net profit margin improved to 15.4% in 2024, indicating efficient cost management and profitability. Revenue growth rate from 2023 to 2024 is 14.9%, showcasing solid growth momentum. The EBIT margin stands at 23.6%, and the EBITDA margin at 37.1%, both indicating strong operational efficiency.

Balance Sheet

Prada's balance sheet is stable with a debt-to-equity ratio of 0.63, reflecting a balanced approach to leverage. The return on equity (ROE) is impressive at 19.1%, indicating effective use of equity capital. The equity ratio is 51.4%, suggesting a healthy level of equity financing relative to total assets. The company maintains a solid asset base, supporting its growth trajectory.

Cash Flow

Prada's cash flow statement shows strong free cash flow generation, with a significant increase in free cash flow from €395.6 million in 2023 to €1.19 billion in 2024. The operating cash flow to net income ratio is 1.97, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.42, reflecting efficient capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.62B	5.43B	4.73B	4.20B	3.37B	2.42B
Gross Profit	4.50B	4.34B	3.80B	2.63B	2.55B	1.74B
EBITDA	2.08B	2.01B	1.29B	1.06B	687.63M	339.83M
Net Income	841.29M	838.91M	671.03M	465.19M	294.25M	-54.14M
Balance Sheet
Total Assets	8.32B	8.55B	7.62B	7.35B	6.96B	6.53B
Cash, Cash Equivalents and Short-Term Investments	597.99M	1.01B	689.52M	1.09B	981.79M	442.39M
Total Debt	2.80B	2.79B	2.60B	2.67B	2.79B	2.89B
Total Liabilities	4.08B	4.13B	3.74B	3.86B	3.83B	3.68B
Stockholders Equity	4.22B	4.40B	3.86B	3.47B	3.11B	2.83B
Cash Flow
Free Cash Flow	994.43M	1.19B	395.61M	868.84M	923.90M	482.86M
Operating Cash Flow	1.54B	1.65B	1.16B	1.11B	1.14B	592.42M
Investing Cash Flow	-571.97M	-462.45M	-759.19M	-250.21M	-137.26M	-149.91M
Financing Cash Flow	-1.01B	-875.47M	-775.73M	-787.38M	-494.73M	-395.27M

Prada Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.46 is below the 20-day moving average (MA) of 11.83, below the 50-day MA of 11.91, and below the 200-day MA of 12.52, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 30.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRDSY.

Prada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDSY	69 Neutral	$15.44B	16.88	19.96%	1.74%	12.12%	12.85%
TPR	69 Neutral	$23.80B	104.09	16.05%	1.29%	8.14%	-65.04%
LUXE	67 Neutral	$1.34B	2.15	56.42%	―	97.28%	―
SIG	64 Neutral	$3.40B	24.81	8.24%	1.51%	-0.40%	-68.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPRI	59 Neutral	$3.22B	―	-165.96%	―	-17.66%	-223.06%
REAL	54 Neutral	$1.63B	―	―	―	14.30%	23.73%

Prada Corporate Events

Prada Group Reports Strong Revenue Growth in 2025

Prada S.p.A. is a leading luxury fashion company known for its high-end clothing, leather goods, and accessories, operating primarily in the fashion and retail industry with a global presence.