Salvatore Ferragamo (SFRGY) AI Stock Analysis

• Market Cap: $973.03M
• Dividend Yield: 1.93%
• Average Volume (3M): 329.00
• Price to Earnings (P/E): 113.0
• Beta (1Y): 1.18
• Revenue Growth: -10.43%
• EPS Growth: -361.46%
• Country: US
• Employees: 3,329
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 337,580,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 329
• PEG Ratio: 0.19
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.67
• 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: 48 Neutral
• Price Target: $3.00 ▲(2.74%Upside)

Salvatore Ferragamo faces significant challenges with declining revenues, negative net income, and bearish technical indicators. The negative P/E ratio highlights valuation concerns, while positive cash flow provides some stability. Strategic improvements are necessary to enhance performance.

Salvatore Ferragamo Business Overview & Revenue Model

Company Description

Salvatore Ferragamo S.p.A. (SFRGY) is a renowned Italian luxury goods company, primarily engaged in the design, production, and distribution of high-end footwear, leather goods, apparel, silk products, jewelry, and other fashion accessories for men and women. With a rich heritage dating back to 1927, the company has established itself as a symbol of traditional craftsmanship and innovative design. Salvatore Ferragamo operates in the premium fashion sector, catering to a global clientele through a network of boutiques and an established online presence.

How the Company Makes Money

Salvatore Ferragamo generates revenue primarily through the sale of luxury goods including footwear, leather goods, apparel, and accessories. The company's key revenue streams include retail sales from its own branded boutiques worldwide, wholesale distribution to high-end department stores and specialty retailers, and online sales through its e-commerce platform. Strategic partnerships and licensing agreements also contribute to its earnings, allowing the brand to expand its product offerings and market reach. The company's revenue is influenced by fashion trends, brand reputation, and its ability to maintain a strong presence in key luxury markets globally.

Salvatore Ferragamo Financial Statement Overview

Summary

Salvatore Ferragamo faces challenges with declining revenues and profitability, as reflected in its income statement. The balance sheet maintains moderate stability but shows increased leverage, raising concerns about financial flexibility. Despite these issues, positive cash flow generation provides some resilience, suggesting a need for strategic improvements to restore growth and profitability.

Income Statement

Salvatore Ferragamo's income statement shows a concerning trend with a revenue decline from 2022 to 2024 and a negative net income in 2024. The EBIT and net profit margins have deteriorated, indicating operational challenges. Despite some recovery in EBITDA, overall profitability remains weak.

Balance Sheet

The company's balance sheet shows a reasonable equity ratio, indicating a moderate reliance on debt financing. However, the increasing debt-to-equity ratio suggests growing leverage, which could pose risks if profitability does not improve. Return on equity has been negative in 2024, highlighting the impact of net losses.

Cash Flow

Cash flow analysis reveals positive free cash flow and a stable operating cash flow, which is a positive aspect for maintaining operations. The free cash flow to net income ratio is favorable, indicating strong cash generation despite recent income losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	1.04B	1.16B	1.25B	1.14B	915.83M
Gross Profit	783.27M	740.01M	839.43M	901.12M	780.94M	565.54M
EBITDA	143.00M	130.50M	248.73M	288.23M	301.15M	158.38M
Net Income	9.31M	-68.09M	26.06M	69.61M	78.65M	-71.70M
Balance Sheet
Total Assets	1.74B	1.70B	1.81B	1.72B	1.85B	1.71B
Cash, Cash Equivalents and Short-Term Investments	256.01M	288.61M	304.26M	401.35M	511.80M	328.16M
Total Debt	783.86M	789.64M	791.17M	604.59M	736.36M	753.91M
Total Liabilities	1.03B	1.08B	1.09B	944.88M	1.06B	1.00B
Stockholders Equity	706.83M	619.09M	721.17M	751.81M	764.31M	693.58M
Cash Flow
Free Cash Flow	73.81M	99.89M	45.76M	211.21M	331.64M	58.52M
Operating Cash Flow	136.90M	170.62M	117.50M	267.07M	376.13M	88.33M
Investing Cash Flow	-80.40M	-85.85M	-96.97M	-65.86M	-30.89M	-37.39M
Financing Cash Flow	-102.37M	-111.91M	-150.09M	-323.28M	-160.29M	47.26M

Salvatore Ferragamo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.92
• 50DMA: Negative
• 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 SFRGY, the sentiment is Negative. The current price of 2.92 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.11, and below the 200-day MA of 3.44, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 6.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFRGY.

Salvatore Ferragamo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPR	76 Outperform	$17.74B	22.96	40.27%	1.64%	2.67%	1.31%
SIG	68 Neutral	$3.27B	86.38	2.04%	1.61%	-3.98%	-93.50%
LUXE	63 Neutral	$677.01M	―	-8.75%	―	7.08%	-42.22%
Sector *	62 Neutral	$16.34B	10.69	-6.34%	3.17%	1.66%	-24.46%
SFRGY	48 Neutral	$973.03M	112.99	-10.25%	1.93%	-10.43%	-361.46%
CPRI	47 Neutral	$2.00B	―	-120.18%	―	-14.08%	-411.39%
LANV	41 Neutral	$290.73M	―	-195.94%	―	-22.86%	-38.76%