Salvatore Ferragamo S.p.A. (SFER) AI Stock Analysis

• Market Cap: €1.12B
• Dividend Yield: 1.37%
• Average Volume (3M): 839.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -8.65%
• EPS Growth: -1512.63%
• Country: IT
• Employees: 3,329
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.09
• Shares Outstanding: 168,790,000
• 10 Day Avg. Volume: 822,420
• 30 Day Avg. Volume: 839,548
• PEG Ratio: 0.05
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 11.22
• 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: €5.19
• Price Target Upside: -28.71% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €7.50 ▲(3.02% Upside)

Salvatore Ferragamo S.p.A.'s overall stock score is primarily influenced by its financial challenges, including declining revenues and high debt levels. Despite strong technical indicators suggesting bullish momentum, the poor valuation metrics and financial performance weigh heavily on the score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Negative Factors

Salvatore Ferragamo S.p.A. 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 luxury goods, with a significant portion coming from its footwear and leather goods segments. The company has a diverse revenue model that includes direct sales from owned boutiques, wholesale distribution to high-end department stores, and online retail. Key revenue streams consist of high-margin products such as shoes, handbags, and accessories, which are marketed to affluent consumers. In addition, Ferragamo benefits from partnerships with luxury retailers and collaborations that enhance brand visibility and reach. Seasonal collections, limited editions, and exclusive products also contribute to driving sales, while the company's strong brand heritage and reputation for quality help maintain customer loyalty and justify premium pricing.

Salvatore Ferragamo S.p.A. Financial Statement Overview

Summary

Salvatore Ferragamo S.p.A. is experiencing financial challenges, with declining revenues and profitability issues. The company has a high debt-to-equity ratio and negative return on equity, indicating financial strain. Cash flow metrics show insufficient free cash flow growth, highlighting the need for operational improvements and better debt management.

Income Statement

Salvatore Ferragamo S.p.A. has experienced declining revenue growth in recent periods, with a negative revenue growth rate of -2.43% in the TTM. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin remains relatively strong at 69.32%, suggesting efficient production processes. However, the negative EBIT and net profit margins highlight significant operational and financial difficulties.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.18, indicating a reliance on debt financing. Return on equity is negative, reflecting recent net losses. The equity ratio is not explicitly calculated, but the balance sheet suggests a moderate level of equity relative to total assets. The high leverage poses a risk, but the company maintains a substantial asset base.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -27.20% in the TTM. The operating cash flow to net income ratio is 0.31, indicating that operating cash flow is covering net income, albeit at a lower level. The free cash flow to net income ratio is 0.52, suggesting that while the company generates some free cash flow, it is insufficient to cover net losses fully.

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	13.46M	130.50M	241.85M	287.84M	299.03M	122.08M
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	238.19M	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 S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SFER, the sentiment is Positive. The current price of 7.28 is above the 20-day moving average (MA) of 6.50, above the 50-day MA of 5.65, and above the 200-day MA of 5.82, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 52.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SFER.

Salvatore Ferragamo S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONC	77 Outperform	€14.08B	23.00	18.89%	2.42%	0.87%	-5.61%
FPE	72 Outperform	€215.98M	17.46	―	2.13%	40.64%	104.21%
PIRC	71 Outperform	€6.15B	12.33	8.98%	4.02%	2.47%	7.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFER	55 Neutral	€1.12B	-8.50	-20.18%	1.37%	-8.65%	-1512.63%
BC	55 Neutral	€5.94B	45.00	28.41%	1.08%	10.35%	15.89%