Global Fashion Group (GFG) AI Stock Analysis

• Market Cap: €69.68M
• Dividend Yield: N/A
• Average Volume (3M): 21.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -11.28%
• EPS Growth: 54.27%
• Country: DE
• Employees: 3,558
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): N/A
• Shares Outstanding: 228,642,910
• 10 Day Avg. Volume: 17,756
• 30 Day Avg. Volume: 21,777
• PEG Ratio: 0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -1.10
• 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: €0.50
• Price Target Upside: 66.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: €0.50 ▲(66.67% Upside)

Global Fashion Group's stock is challenged by poor financial performance and unattractive valuation metrics. The technical analysis indicates a bearish trend, further weighing on the stock's outlook. The lack of earnings call data and corporate events leaves no room for positive sentiment or strategic developments to offset these challenges.

Global Fashion Group Business Overview & Revenue Model

Company Description

Global Fashion Group S.A., together with its subsidiaries, operates e-commerce platforms for fashion and lifestyle markets in Latin America, the Commonwealth of Independent States, Southeast Asia, Australia, and New Zealand. The company offers products for various fashion and lifestyle categories, such as apparel, footwear, accessories, and kids and sportswear. It also provides associated ancillary services, such as marketing, technology, payment, warehousing, and logistics services; trustee, consultancy, and IT services; and wholesale, online retail, and call center services, as well as operates as a general partner and financial holding company. The company operates through four e-commerce platforms, which include Dafiti, Lamoda, ZALORA, and THE ICONIC. Global Fashion Group S.A. was founded in 2011 and is based in Senningerberg, Luxembourg.

How the Company Makes Money

Global Fashion Group generates revenue primarily through the sale of fashion and lifestyle products on its e-commerce platforms. The company employs a multi-faceted revenue model that includes direct sales of merchandise, marketplace commissions from third-party sellers, and advertising revenue from brand partnerships. Key revenue streams include the sale of branded apparel and accessories, while the marketplace component allows GFG to expand its product offerings without holding inventory. Significant partnerships with both established and emerging fashion brands enhance its product range and attract a wider customer base, contributing to increased sales and customer loyalty.

Global Fashion Group Financial Statement Overview

Summary

Global Fashion Group faces significant financial challenges, with declining revenue and profitability issues over the years. Despite some improvements in debt management, the company struggles with operational inefficiencies, as seen in its negative margins and cash flow issues. While the narrowing net loss suggests potential for recovery, the high debt levels and negative cash flows pose substantial risks.

Income Statement

The company has faced declining revenue over the past few years, with a significant drop from 2021 to 2024. Gross profit margin has been decreasing, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have consistently been negative, indicating operational inefficiency. However, the net loss has narrowed slightly in the recent year, suggesting some improvement in cost control.

Balance Sheet

The balance sheet reveals a stable equity ratio around 33.5% in 2024, indicating moderate financial stability. However, the debt-to-equity ratio is relatively high due to decreased equity, increasing the risk profile. Despite these challenges, the company has managed to reduce its total debt significantly from 2020 to 2024, which is a positive sign.

Cash Flow

The cash flow statement shows negative operating cash flow in the most recent year, reflecting challenges in generating cash from operations. Free cash flow has been negative, though there has been a slight improvement in reduction of negative free cash flow. The operating cash flow to net income ratio is unfavorable, indicating that the company struggles to convert its income into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	715.30M	743.50M	838.00M	1.07B	1.04B	1.36B
Gross Profit	328.60M	333.80M	352.90M	452.70M	448.30M	586.20M
EBITDA	-22.01M	-18.60M	-86.20M	-68.20M	-38.00M	-27.50M
Net Income	-79.90M	-82.50M	-178.40M	-196.30M	-124.80M	-107.20M
Balance Sheet
Total Assets	514.60M	637.50M	862.00M	1.17B	1.54B	1.17B
Cash, Cash Equivalents and Short-Term Investments	159.70M	210.60M	387.00M	550.00M	634.50M	366.10M
Total Debt	92.50M	103.00M	239.40M	343.00M	497.20M	123.90M
Total Liabilities	353.40M	426.30M	566.30M	695.10M	971.40M	553.70M
Stockholders Equity	164.60M	213.70M	272.30M	475.50M	569.70M	615.20M
Cash Flow
Free Cash Flow	-28.40M	-44.60M	-76.40M	25.00M	-107.80M	-19.20M
Operating Cash Flow	-25.40M	-15.00M	-47.50M	92.60M	-51.20M	30.30M
Investing Cash Flow	-20.20M	130.10M	48.90M	-38.00M	-293.10M	-33.50M
Financing Cash Flow	-118.90M	-130.60M	-99.50M	-121.90M	370.10M	106.50M

Global Fashion Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 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 DE:GFG, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.34, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of 17.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:GFG.

Global Fashion Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPG	72 Outperform	€160.07M	3.57	35.60%	―	5.73%	-25.88%
ZAL	65 Neutral	€6.80B	25.12	10.35%	―	7.12%	78.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WEW	57 Neutral	€233.15M	49.89	6.37%	―	-0.39%	―
ECK	49 Neutral	€44.71M	―	-6.65%	1.24%	1.39%	-1422.54%
YOU	45 Neutral	€1.06B	―	-47.97%	―	3.44%	5.93%
GFG	44 Neutral	€69.68M	―	-34.04%	―	-11.28%	54.27%