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Salvatore Ferragamo S.p.A. Unsponsored ADR (SFRGY)
:SFRGY
US Market
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Salvatore Ferragamo (SFRGY) AI Stock Analysis

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SFRGY

Salvatore Ferragamo

(OTC:SFRGY)

Rating:56Neutral
Price Target:
$3.00
▲(8.70% Upside)
The overall stock score of 56 reflects significant financial challenges, characterized by declining revenues and profitability. While positive cash flow provides a degree of stability, increased leverage raises concerns about financial flexibility. Technical indicators suggest neutral to slightly bullish momentum, but valuation concerns due to unprofitability weigh heavily.

Salvatore Ferragamo (SFRGY) vs. SPDR S&P 500 ETF (SPY)

Salvatore Ferragamo Business Overview & Revenue Model

Company DescriptionSalvatore 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 MoneySalvatore 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's financial performance is challenged by declining revenues and negative net income. However, the company maintains positive cash flow, providing some operational stability despite increased leverage.
Income Statement
45
Neutral
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
60
Neutral
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.04B1.16B1.25B1.14B915.83M
Gross Profit740.01M839.43M901.12M780.94M565.54M
EBITDA130.50M248.73M288.23M301.15M158.38M
Net Income-68.09M26.06M69.61M78.65M-71.70M
Balance Sheet
Total Assets1.70B1.81B1.72B1.85B1.71B
Cash, Cash Equivalents and Short-Term Investments288.61M304.26M401.35M511.80M328.16M
Total Debt789.64M791.17M604.59M736.36M753.91M
Total Liabilities1.08B1.09B944.88M1.06B1.00B
Stockholders Equity619.09M721.17M751.81M764.31M693.58M
Cash Flow
Free Cash Flow99.89M45.76M211.21M331.64M58.52M
Operating Cash Flow170.62M117.50M267.07M376.13M88.33M
Investing Cash Flow-85.85M-96.97M-65.86M-30.89M-37.39M
Financing Cash Flow-111.91M-150.09M-323.28M-160.29M47.26M

Salvatore Ferragamo Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.76
Price Trends
50DMA
3.01
Negative
100DMA
3.12
Negative
200DMA
3.34
Negative
Market Momentum
MACD
-0.09
Positive
RSI
29.67
Positive
STOCH
0.34
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 2.76 is below the 20-day moving average (MA) of 2.93, below the 50-day MA of 3.01, and below the 200-day MA of 3.34, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 29.67 is Positive, neither overbought nor oversold. The STOCH value of 0.34 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$23.16B29.3440.27%1.29%2.67%1.31%
63
Neutral
$3.13B82.472.04%1.62%-3.98%-93.50%
63
Neutral
$691.51M-8.75%7.08%-42.22%
61
Neutral
$16.55B10.17-9.03%3.33%1.46%-22.85%
56
Neutral
$888.11M112.99-19.61%1.93%-8.15%-1507.57%
51
Neutral
$2.46B-142.38%-16.69%-279.61%
49
Neutral
$287.21M-195.94%-22.86%-38.76%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SFRGY
Salvatore Ferragamo
2.67
-1.42
-34.72%
TPR
Tapestry
108.48
71.40
192.56%
CPRI
Capri Holdings
20.77
-11.33
-35.30%
SIG
Signet Jewelers
75.25
1.17
1.58%
LUXE
LuxExperience
7.94
4.31
118.73%
LANV
Lanvin Group Holdings
2.36
1.38
140.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025