Prada (PRDSY) AI Stock Analysis

• Market Cap: $16.27B
• Dividend Yield: 1.57%
• Average Volume (3M): 9.75K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.60
• Revenue Growth: 14.98%
• EPS Growth: 25.10%
• Country: US
• Employees: 15,216
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Luxury Goods
• EPS (TTM): 0.71
• Shares Outstanding: 1,279,412,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 9,751
• PEG Ratio: 0.92
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $15.00 ▲(16.64%Upside)

Prada's overall stock score is driven by strong financial performance and positive earnings call outcomes, with significant contributions from robust profitability and strategic brand initiatives. While technical indicators and valuation are less favorable, they are balanced by the company's growth prospects and operational strengths.

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 makes money primarily through the design, production, and sale of luxury fashion goods. The company's revenue streams include retail sales from its directly operated stores, wholesale distribution to high-end department stores and specialty boutiques, and e-commerce sales through its website and third-party platforms. Prada also generates income from licensing agreements, where it authorizes other companies to produce and sell products under its brand name. Significant factors contributing to its earnings include its strong brand recognition, innovative product design, and strategic location of retail outlets in major fashion capitals and affluent markets. Additionally, Prada benefits from its vertically integrated business model, which allows for greater control over production, quality, and distribution.

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
	EBIT
1.28B	1.06B	834.53M	467.67M	1.10M
	EBITDA
2.01B	1.73B	1.42B	1.09B	648.73M
	Net Income Common Stockholders
838.91M	671.03M	465.19M	294.25M	-54.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.01B	689.52M	1.09B	981.79M	442.39M
	Total Assets
8.55B	7.62B	7.35B	6.96B	6.53B
	Total Debt
2.79B	2.60B	2.65B	2.79B	2.89B
	Net Debt
1.78B	1.91B	1.57B	1.81B	2.44B
	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: 12.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 12.86 is below the 20-day moving average (MA) of 13.16, above the 50-day MA of 12.69, and below the 200-day MA of 14.29, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 12.53 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
PRDSY	76 Outperform	$16.27B	17.93	20.60%	1.57%	14.98%	25.10%
TPR	76 Outperform	$16.60B	21.03	40.27%	1.77%	2.67%	1.31%
RL	76 Outperform	$16.17B	23.09	29.49%	1.22%	6.75%	19.71%
MTN	76 Outperform	$5.82B	20.04	30.55%	5.70%	2.38%	6.01%
ZGN	76 Outperform	$3.55B	26.24	8.89%	1.49%	2.26%	-37.52%
SCI	73 Outperform	$11.36B	21.98	32.71%	1.53%	2.40%	4.07%
Sector *	63 Neutral	$6.96B	11.51	2.80%	3.85%	2.70%	-24.43%