Prada (PRDSY) AI Stock Analysis

• Market Cap: $13.23B
• Dividend Yield: 3.52%
• Average Volume (3M): 1.21K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.61
• Revenue Growth: 12.12%
• EPS Growth: 12.85%
• Country: US
• Employees: 15,216
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Luxury Goods
• EPS (TTM): 0.33
• Shares Outstanding: 1,279,412,000
• 10 Day Avg. Volume: 165
• 30 Day Avg. Volume: 1,210
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 3.40
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 9.18
• 1Y Price Target: $15.00
• Price Target Upside: 41.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $13.00 ▲(22.76% Upside)

Prada's overall stock score reflects strong financial performance and positive earnings call sentiment, though tempered by bearish technical indicators and challenges in retail sales due to tourism impacts. The valuation is reasonable, with a moderate P/E ratio and a solid dividend yield.

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 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

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	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: Negative
• Last Price: 10.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 10.59 is below the 20-day moving average (MA) of 12.18, below the 50-day MA of 12.44, and below the 200-day MA of 14.06, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 25.04 is Positive, neither overbought nor oversold. The STOCH value of 3.96 is Positive, 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
TPR	74 Outperform	$23.16B	29.44	40.27%	1.32%	2.67%	1.31%
PRDSY	70 Outperform	$13.23B	14.47	19.96%	3.52%	12.12%	12.85%
SIG	68 Neutral	$3.13B	82.29	2.04%	1.62%	-3.98%	-93.50%
Sector *	63 Neutral	£1.75B	11.06	2.86%	3.21%	0.32%	-41.79%
LUXE	63 Neutral	$691.51M	―	-8.75%	―	7.08%	-42.22%
REAL	54 Neutral	$592.62M	―	32.94%	―	11.89%	66.22%
CPRI	45 Neutral	$2.00B	―	-120.18%	―	-14.08%	-411.39%