Samsonite International SA (SMSEY) AI Stock Analysis

• Market Cap: $3.71B
• Dividend Yield: 4.13%
• Average Volume (3M): 1.13K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.18
• Revenue Growth: -3.44%
• EPS Growth: -15.25%
• Country: US
• Employees: 12,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.28
• Shares Outstanding: 293,247,220
• 10 Day Avg. Volume: 2,873
• 30 Day Avg. Volume: 1,133
• PEG Ratio: -0.67
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 8.69
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 5.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $14.50 ▲(11.28% Upside)

Samsonite International SA's stock is supported by strong technical indicators and positive earnings call sentiment, indicating recovery and growth potential. While financial performance shows profitability, the challenges of declining revenue and high leverage need addressing. The valuation is reasonable, and the dividend yield adds to its attractiveness.

Positive Factors

Direct-to-Consumer Growth

The growth in direct-to-consumer sales, particularly in e-commerce, enhances control over customer experience and margins, supporting long-term revenue stability.

Gross Margin Expansion

Improved gross margins indicate effective cost management and pricing strategies, enhancing profitability and competitive positioning in the market.

TUMI Brand Resurgence

The resurgence of the TUMI brand, especially in Asia and Europe, strengthens Samsonite's product portfolio and market presence, driving future growth.

Negative Factors

Declining Revenue

A significant decline in revenue growth poses challenges for sustaining long-term profitability and may impact market share if not addressed.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Challenges in North America

Continued sales challenges in North America, particularly in the wholesale channel, could hinder overall growth and require strategic adjustments.

Samsonite International SA Business Overview & Revenue Model

Company Description

Samsonite International SA is a leading global provider of luggage, travel goods, and accessories. Established in 1910, the company is headquartered in Luxembourg and operates in various sectors including travel, fashion, and lifestyle products. Samsonite offers a wide range of products including suitcases, backpacks, and travel accessories, catering to both business and leisure travelers. The brand is recognized for its innovation, quality, and durability, positioning itself as a premium choice in the travel goods market.

How the Company Makes Money

Samsonite generates revenue primarily through the sale of its products, which include hard and soft luggage, backpacks, and travel accessories. The company operates a multi-channel distribution model, selling directly to consumers through its own retail stores and e-commerce platforms, as well as through third-party retailers and wholesalers. Key revenue streams include direct sales from owned retail locations and online platforms, as well as wholesale distribution to various travel and lifestyle outlets. Samsonite also benefits from strategic partnerships with airlines, hotels, and travel agencies, which enhance its visibility and market reach. Additionally, the company invests in marketing and brand development to maintain its premium positioning, further driving sales through brand loyalty and customer retention.

Samsonite International SA Financial Statement Overview

Summary

Samsonite International SA shows strong profitability margins and effective equity utilization, but faces challenges with declining revenue and high leverage. The company's ability to manage its debt and improve cash flow generation will be critical in maintaining financial stability and supporting future growth.

Income Statement

Samsonite International SA's income statement shows a strong gross profit margin of 59.5% TTM, indicating efficient production and pricing strategies. However, the net profit margin has decreased to 8.6% TTM, reflecting challenges in controlling costs or pricing pressures. The revenue growth rate is negative at -25.4% TTM, suggesting a significant decline in sales, which is a concern for future profitability. EBIT and EBITDA margins are healthy at 16% and 18.3% TTM, respectively, but have decreased compared to previous years, indicating potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.71 TTM, indicating significant leverage and potential financial risk. Return on equity is strong at 20.4% TTM, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets. However, the high leverage could pose risks if not managed carefully, especially in a declining revenue environment.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -5.5% TTM, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is 0.30 TTM, suggesting moderate efficiency in converting income into cash. The free cash flow to net income ratio is 0.82 TTM, reflecting a reasonable conversion of profits into cash. Despite these challenges, the company maintains a positive cash flow, which is crucial for sustaining operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.48B	3.59B	3.68B	2.88B	2.02B	1.54B
Gross Profit	2.08B	1.97B	2.18B	1.61B	1.10B	706.30M
EBITDA	783.83M	859.00M	898.10M	647.50M	286.20M	-1.01B
Net Income	302.46M	345.70M	417.00M	312.70M	14.30M	-1.28B
Balance Sheet
Total Assets	5.03B	5.22B	5.11B	4.72B	4.85B	5.16B
Cash, Cash Equivalents and Short-Term Investments	496.70M	676.30M	716.60M	635.90M	1.32B	1.50B
Total Debt	2.36B	2.32B	2.30B	2.39B	3.22B	3.72B
Total Liabilities	3.47B	3.68B	3.59B	3.64B	4.13B	4.49B
Stockholders Equity	1.50B	1.48B	1.45B	1.03B	689.70M	634.10M
Cash Flow
Free Cash Flow	378.84M	457.70M	424.10M	214.90M	361.20M	-140.30M
Operating Cash Flow	475.84M	561.70M	534.20M	277.70M	387.10M	-114.20M
Investing Cash Flow	-104.22M	-111.50M	-110.10M	-62.80M	9.40M	-26.10M
Financing Cash Flow	-561.29M	-459.70M	-347.80M	-881.10M	-551.20M	1.16B

Samsonite International SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMSEY, the sentiment is Positive. The current price of 13.03 is above the 20-day moving average (MA) of 12.83, above the 50-day MA of 12.13, and above the 200-day MA of 10.51, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 91.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMSEY.

Samsonite International SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	79 Outperform	$15.12B	15.10	43.31%	―	12.38%	18.43%
BIRK	77 Outperform	$7.99B	20.61	12.67%	―	18.86%	88.29%
SMSEY	75 Outperform	$3.71B	12.06	20.27%	4.13%	-3.44%	-15.25%
SHOO	64 Neutral	$3.27B	57.21	6.68%	1.97%	6.26%	-66.51%
CROX	63 Neutral	$4.47B	28.40	11.82%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%