Prada (PRDSY) AI Stock Analysis

Compare

60 Followers

Top Page

Prada

(OTC:PRDSY)

Rating:69Neutral

Price Target:

$11.50

▲(3.23% Upside)

Prada's overall stock score is driven by strong financial performance and a fair valuation, which are offset by bearish technical indicators and mixed earnings call results. The company's robust revenue growth and profitability are significant strengths, but the current market momentum and challenges in key markets present risks.

Prada (PRDSY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$13.73B

Dividend Yield3.27%

Average Volume (3M)1.70K

Price to Earnings (P/E)14.4

Beta (1Y)0.60

Revenue Growth12.12%

EPS Growth12.85%

CountryUS

Employees15,216

SectorConsumer Cyclical

Sector Strength80

IndustryLuxury Goods

Share Statistics

EPS (TTM)0.33

Shares Outstanding1,279,412,000

10 Day Avg. Volume3,720

30 Day Avg. Volume1,698

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.35

Enterprise Value/Revenue3.40

Enterprise Value/Gross Profit4.26

Enterprise Value/Ebitda9.18

Forecast

1Y Price Target

$11.50

Price Target Upside3.23% Upside

Rating ConsensusHold

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 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Mar 05, 2026

Earnings Call Sentiment Neutral

The earnings call reflects a mixed performance with notable achievements in revenue growth, especially for Miu Miu, and strong sustainability initiatives. However, challenges remain with the Prada brand's sales decline in key markets and issues in the wholesale channel. The company maintains stable profitability but faces cyclical downturns in tourism impacting growth.

Q2-2025 Updates

Positive Updates

Solid Revenue Growth

Prada Group reported net revenues of EUR 2.74 billion, up 9% versus H1 '24 at constant FX, with retail sales reaching EUR 2.45 billion, up 10%.

Miu Miu's Strong Performance

Miu Miu retail sales grew by 49% in the semester and 40% in Q2, with well-distributed growth across categories and regions.

Sustainability and ESG Initiatives

Progress in ESG, including transition to lower impact raw materials, DE&I road map implementation, and investment in ocean literacy and preservation.

Stable Profitability

The group achieved an EBIT adjusted of EUR 619 million with a margin of 22.6%, maintaining steady profitability despite increased investments.

Expansion and Innovation

Prada's efforts in opening new stores, launching new collections, and enhancing the customer experience with personalized offerings like the new men's store on 5th Avenue.

Negative Updates

Challenges in Key Markets

Retail sales for the Prada brand were down 2% in the semester, impacted by lower touristic flows in Japan and Europe.

Wholesale Channel Decline

Wholesale sales were down 1% for the semester and down 7% in Q2, affected by phasing and a selective approach with independents.

Tourism-Related Cyclical Downturn

A downturn led by reduced American and Asian tourist flows, impacting luxury business performance, particularly in Japan and Europe.

Company Guidance

During the Prada Group's First Half 2025 Results Presentation, Andrea Guerra, the Group CEO, provided a comprehensive overview of the company's solid performance amidst industry challenges. Prada reported a 10% like-for-like growth, with net revenues reaching EUR 2.74 billion, marking a 9% increase at constant FX. Retail sales rose by 10% to EUR 2.45 billion, while EBIT adjusted stood at EUR 619 million, maintaining a margin of 22.6%. The group's net cash position was EUR 352 million, with cash flow from operations at EUR 696 million. Miu Miu's retail sales surged by 49%, contributing to 32% of the group’s retail sales. Geographically, Middle East sales increased by 26%, while Asia Pacific and Europe grew by 10% and 9%, respectively. The company maintained a gross margin of 80.1%, with OpEx rising by 9% at constant FX due to increased consumer-facing activities. Capital expenditures for the period reached EUR 247 million, indicating a commitment to strategic investments. Despite facing headwinds from lower tourism, particularly American tourists in Europe, Prada expects improvements in the second half of the year, focusing on strengthening consumer relationships and enhancing retail experiences.

Prada Financial Statement Overview

Summary

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

Income Statement

Very Positive

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

Positive

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

Positive

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	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 Price11.14

Price Trends

50DMA

11.69

Negative

100DMA

12.16

Negative

200DMA

13.77

Negative

Market Momentum

MACD

-0.35

Negative

RSI

43.71

Neutral

STOCH

49.29

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 11.14 is above the 20-day moving average (MA) of 10.59, below the 50-day MA of 11.69, and below the 200-day MA of 13.77, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 49.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRDSY.

Prada Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIG	71 Outperform	$3.61B	92.45	2.04%	1.39%	-3.98%	-93.50%
PRDSY	69 Neutral	$13.73B	14.45	19.96%	3.27%	12.12%	12.85%
LUXE	63 Neutral	$706.00M	―	-8.75%	―	7.08%	-42.22%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
TPR	60 Neutral	$20.96B	119.59	9.76%	1.39%	5.09%	-80.06%
REAL	58 Neutral	$871.19M	―	32.94%	―	12.68%	62.96%
CPRI	49 Neutral	$2.55B	―	-142.38%	―	-16.69%	-279.61%

* Consumer Cyclical Sector Average

Performance Comparison

PRDSY

Prada

10.72

-3.20

-22.99%

TPR

Tapestry

100.98

61.37

154.94%

CPRI

Capri Holdings

21.55

-14.33

-39.94%

SIG

Signet Jewelers

93.37

10.41

12.55%

REAL

RealReal

7.63

5.00

190.11%

LUXE

LuxExperience

8.44

4.54

116.41%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 19, 2025