Salvatore Ferragamo (SFRGY) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: 1.16%
• Average Volume (3M): 89.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -8.15%
• EPS Growth: -1519.08%
• Country: US
• Employees: 3,329
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.05
• Shares Outstanding: 337,580,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 89
• PEG Ratio: 0.05
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 11.46
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: -36.11
• 1Y Price Target: $5.70
• Price Target Upside: 22.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $4.50 ▼(-3.43% Downside)

Salvatore Ferragamo's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and high leverage. Despite strong technical momentum, the negative P/E ratio and modest dividend yield weigh on the valuation. Investors should be cautious of the financial instability despite the current bullish technical indicators.

Positive Factors

Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support long-term profitability despite revenue challenges.

Brand Strength

Ferragamo's strong brand reputation in luxury goods supports customer loyalty and pricing power, providing a competitive edge in the luxury market.

Multi-Channel Distribution

A diversified distribution model enhances market reach and resilience, allowing Ferragamo to capture sales across various channels and adapt to consumer trends.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term growth and market share.

High Leverage

Significant leverage can strain financial flexibility and increase risk, especially in volatile markets, impacting long-term financial health.

Negative Cash Flow Growth

Negative cash flow growth suggests potential liquidity issues, which can hinder investment in growth initiatives and affect operational stability.

Salvatore Ferragamo Business Overview & Revenue Model

Company Description

Salvatore Ferragamo S.p.A., through its subsidiaries, creates, produces, and sells luxury goods for men and women in Italy, rest of Europe, North America, Japan, the Asia Pacific, and Central and South America. The company offers men's and women's footwear; leather goods, such as handbags, suitcases, belts, wallets, and other men's and women's leather accessories; and knitwear, clothes for formal occasions, sportswear, and leisure wear, as well as outerwear, such as husky jackets, ponchos, and leather garments. It also provides silk accessories, including ties, foulards, scarves, etc.; home accessories comprising plaid throws, cushions, and beach towels; costume jewelry; and other accessories consisting of shawls and gloves. In addition, the company develops and distributes perfumes and fragrances. Further, it offers men's and women's sunglasses and prescription glasses; jewelry products; and watches. Additionally, the company is also involved in the real estate management business. Salvatore Ferragamo S.p.A. was formerly known as Salvatore Ferragamo Italia S.p.A. and changed its name to Salvatore Ferragamo S.p.A. in April 2011. The company was founded in 1927 and is headquartered in Florence, Italy. Salvatore Ferragamo S.p.A. is a subsidiary of Ferragamo Finanziaria S.p.A.

How the Company Makes Money

Salvatore Ferragamo generates revenue primarily through the sale of its luxury products, which include footwear, leather accessories, and ready-to-wear clothing. The company operates a multi-channel distribution model, encompassing directly operated stores, e-commerce platforms, and select high-end department stores and boutiques. Key revenue streams include retail sales from its global network of boutiques, wholesale distribution, and e-commerce sales. Additionally, the brand benefits from strategic partnerships with luxury retailers and collaborations with designers, which enhance its market presence and boost sales. Seasonal collections and limited editions also drive consumer interest and sales, contributing to the company's overall profitability.

Salvatore Ferragamo Financial Statement Overview

Summary

Salvatore Ferragamo faces financial challenges with declining revenues and profitability. The company is highly leveraged, which could pose risks in a volatile market. While the gross profit margin remains strong, operational inefficiencies and negative cash flow growth highlight areas for improvement.

Income Statement

The income statement shows declining revenue with a negative revenue growth rate of -2.43% TTM, indicating a challenging market environment. Gross profit margin remains strong at 69.32% TTM, but the net profit margin is negative at -13.34% TTM, reflecting significant profitability challenges. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.18 TTM, indicating significant leverage. Return on equity is negative at -21.64% TTM, highlighting poor returns for shareholders. However, the equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -27.20% TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.31 TTM, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.52 TTM, showing some ability to cover net income with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	985.91M	1.04B	1.16B	1.25B	1.14B	876.51M
Gross Profit	683.47M	740.01M	839.43M	901.12M	780.94M	551.31M
EBITDA	-37.44M	130.50M	248.73M	288.23M	183.60M	25.63M
Net Income	-131.53M	-68.09M	26.06M	69.61M	78.65M	-66.40M
Balance Sheet
Total Assets	1.53B	1.70B	1.81B	1.72B	1.85B	1.71B
Cash, Cash Equivalents and Short-Term Investments	206.69M	288.61M	304.26M	401.35M	511.80M	328.16M
Total Debt	701.29M	789.64M	791.17M	604.59M	736.36M	753.91M
Total Liabilities	935.82M	1.08B	1.09B	944.88M	1.06B	1.00B
Stockholders Equity	596.79M	619.09M	721.17M	751.81M	764.31M	693.58M
Cash Flow
Free Cash Flow	62.57M	99.89M	45.76M	211.21M	331.64M	58.52M
Operating Cash Flow	120.53M	170.62M	117.50M	267.07M	376.13M	88.33M
Investing Cash Flow	-81.27M	-85.85M	-96.97M	-65.86M	-30.89M	-37.39M
Financing Cash Flow	-137.15M	-111.91M	-150.09M	-323.28M	-160.29M	47.26M

Salvatore Ferragamo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 4.66 is below the 20-day moving average (MA) of 4.74, above the 50-day MA of 4.57, and above the 200-day MA of 3.46, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 4.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SFRGY.

Salvatore Ferragamo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	73 Outperform	$357.40M	23.39	4.40%	6.79%	0.63%	-7.37%
TPR	69 Neutral	$26.75B	116.97	16.05%	1.16%	8.14%	-65.04%
LUXE	67 Neutral	$1.11B	1.79	56.42%	―	97.28%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPRI	56 Neutral	$2.96B	-2.52	-165.96%	―	-17.66%	-223.06%
SFRGY	54 Neutral	$1.40B	-9.76	-19.61%	1.16%	-8.15%	-1519.08%
REAL	54 Neutral	$1.94B	-11.96	―	―	14.30%	23.73%