Salvatore Ferragamo (SFRGY) AI Stock Analysis

• Market Cap: $950.82M
• Dividend Yield: 1.91%
• Average Volume (3M): 2.05K
• Price to Earnings (P/E): 113.0
• Beta (1Y): 1.21
• Revenue Growth: -8.15%
• EPS Growth: -1519.08%
• Country: US
• Employees: 3,329
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.06
• Shares Outstanding: 337,580,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,047
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 10.84
• 1Y Price Target: $3.00
• Price Target Upside: 7.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $3.00 ▲(7.14% Upside)

Salvatore Ferragamo's overall stock score is primarily impacted by its weak financial performance and poor valuation. The company's declining revenues and profitability, coupled with a negative P/E ratio, are significant concerns. Technical analysis indicates a bearish trend, further weighing on the stock's outlook. Despite these challenges, positive cash flow generation and a modest dividend yield offer some resilience.

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 makes money primarily through the sale of its luxury products, which include footwear, leather goods, apparel, and accessories. The company operates a vertically integrated business model, managing the entire production process from design to retail, which helps maintain product quality and brand exclusivity. Key revenue streams include direct sales through its network of retail stores and e-commerce platforms, as well as wholesale distribution to high-end department stores and specialty retailers. The company also benefits from brand collaborations and licensing agreements, contributing to its revenue through diversified product offerings. Strategic partnerships and a strong focus on expanding its retail footprint in emerging markets further bolster its earnings potential.

Salvatore Ferragamo Financial Statement Overview

Summary

Salvatore Ferragamo faces challenges with declining revenues and profitability, as reflected in the income statement. The balance sheet maintains moderate stability but shows increased leverage, raising concerns about financial flexibility. However, positive cash flow generation provides some resilience.

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: Positive
• Last Price: 2.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFRGY, the sentiment is Positive. The current price of 2.8 is above the 20-day moving average (MA) of 2.76, below the 50-day MA of 2.83, and below the 200-day MA of 3.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 92.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFRGY.

Salvatore Ferragamo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIG	75 Outperform	3.87B	31.00	7.64%	1.29%	-1.63%	-72.22%
LUXE	63 Neutral	757.16M	-19.12	0.00%	―	7.08%	-42.22%
TPR	60 Neutral	22.87B	132.99	21.36%	1.32%	5.09%	-80.06%
SFRGY	52 Neutral	$950.82M	112.99	-19.61%	1.91%	-8.15%	-1519.08%
CPRI	50 Neutral	2.60B	-2.32	6541.18%	―	-16.69%	-279.61%
LANV	46 Neutral	253.20M	-1.01	3750.68%	―	-23.54%	-49.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%