Prada (PRDSY) AI Stock Analysis

• Market Cap: $16.23B
• Dividend Yield: 1.54%
• Average Volume (3M): 1.91K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.66
• 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: 1.14
• 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

• Rating: 75 Outperform
• Price Target: $13.00 ▲(0.46% Upside)

Prada's overall stock score is driven by its strong financial performance and reasonable valuation. The company's robust revenue growth and high profitability margins are significant strengths. However, technical indicators suggest caution, and challenges in key markets and wholesale channels present risks.

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 products in both retail and wholesale channels. The company operates a network of exclusive boutiques and flagship stores in major cities worldwide, which contribute significantly to its sales. Additionally, Prada's e-commerce platform has become increasingly important, allowing it to reach a broader customer base. Key revenue streams include the sale of leather goods, apparel, and footwear, with leather goods representing a substantial portion of total sales. The brand also benefits from strategic partnerships and collaborations that enhance its visibility and attract new customers. Seasonal collections and limited-edition releases drive demand and help maintain exclusivity, further supporting the company's revenue model.

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.

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: Positive
• Last Price: 12.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDSY, the sentiment is Positive. The current price of 12.94 is above the 20-day moving average (MA) of 11.92, above the 50-day MA of 11.67, and below the 200-day MA of 13.10, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRDSY.

Prada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDSY	―	$16.23B	17.75	19.96%	1.54%	12.12%	12.85%
SIG	―	$4.25B	34.80	6.82%	1.21%	-1.63%	-72.22%
TPR	―	$23.75B	139.31	9.76%	1.26%	5.09%	-80.06%
LUXE	―	$783.59M	1.82	61.33%	―	51.76%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
REAL	―	$1.39B	―	―	―	12.68%	62.96%
CPRI	―	$2.65B	―	-142.38%	―	-16.69%	-279.61%

Prada Corporate Events

Prada S.p.A. Reports Strong Revenue Growth in H1 2025

Prada S.p.A., a prominent player in the luxury goods sector, is known for its diverse range of products including leather goods, footwear, and ready-to-wear under brands like Prada and Miu Miu, along with ventures in food, sailing, eyewear, and beauty industries. In its latest earnings report for the first half of 2025, Prada Group announced a 9% increase in net revenues at constant exchange rates, reaching €2,740 million. Retail net sales grew by 10%, with notable performances from the Miu Miu brand, which saw a 49% increase, while Prada brand sales decreased by 2%. The company reported an EBIT Adjusted of €619 million and a net income of €386 million, maintaining a strong financial position with a net financial surplus of €352 million. Key highlights include regional sales growth across all markets, with the Middle East and Americas showing the most significant increases. The Group also announced strategic acquisitions, including Versace, and continued investments in digital and industrial capabilities. Looking ahead, Prada remains committed to its strategic objectives, focusing on sustainable growth and maintaining a balance between cautiousness and long-term investments amid ongoing market challenges.

Prada Spa ADR Reports Resilient Growth Amid Challenges

Prada Spa ADR’s recent earnings call presented a balanced sentiment, highlighting significant growth in sales and investments in brand and infrastructure. However, the company faces challenges due to reduced tourism and retail sales in key markets, alongside a decline in the wholesale channel.