Safilo Group SpA (SFL) AI Stock Analysis

• Market Cap: €310.68M
• Dividend Yield: N/A
• Average Volume (3M): 753.00K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.32
• Revenue Growth: -3.08%
• EPS Growth: N/A
• Country: IT
• Employees: 3,352
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.05
• Shares Outstanding: 414,239,320
• 10 Day Avg. Volume: 451,106
• 30 Day Avg. Volume: 753,002
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €1.16
• Price Target Upside: 39.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Safilo Group SpA's stock score is moderate, driven by its robust financial performance with improvements in profitability and cash flow. However, technical indicators suggest potential bearish momentum, and the absence of a dividend yield might limit appeal. Valuation appears fair with a P/E ratio that aligns with industry standards.

Positive Factors

Cash Flow

Cash management track record improves with management delivering underlying free cash flow of €30m in FY24, similar to FY23.

EBITDA Margin

EBITDA margin increased by 20 basis points to 7.9% in 3Q24, driven by continued gross margin expansion.

Profitability

Management has convincingly delivered on profitability and cash management.

Negative Factors

Market Visibility

Visibility remains low in Safilo's main region, North America that drives approximately 43% of company's sales, in context of macro and consumer spending uncertainty.

Sales Decline

Top-line momentum remained muted with a 3.4% constant-currency sales decline, driven by deteriorating conditions in Europe and China.

Underperformance

The sun business in Europe and sports brands in North America continued to underperform due to poor weather conditions and challenging market environments.

Safilo Group SpA Business Overview & Revenue Model

Company Description

Safilo Group SpA is a leading global eyewear company based in Italy, known for its design, manufacturing, and distribution of optical frames, sunglasses, and sports eyewear. With a rich heritage dating back to 1934, Safilo operates in the fashion, luxury, and sports sectors, collaborating with numerous prestigious brands to offer a diverse and stylish product range that caters to various consumer needs and preferences.

How the Company Makes Money

Safilo Group SpA generates revenue primarily through the sale of its eyewear products, including optical frames and sunglasses, under both proprietary and licensed brands. The company's revenue model is built on a combination of wholesale distribution to retailers, direct-to-consumer sales through its own retail outlets, and e-commerce platforms. Safilo's key revenue streams include its portfolio of licensed brands, such as Dior, Fendi, and Jimmy Choo, and its own brands like Carrera and Polaroid. Strategic partnerships with luxury fashion houses and sports brands play a crucial role in its earnings, as these collaborations enhance brand visibility and market reach. Additionally, Safilo invests in innovation and design to maintain its competitive edge in the industry, which also contributes to its income.

Safilo Group SpA Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.02B	1.08B	969.58M	780.30M	939.04M
	Gross Profit
601.74M	537.23M	445.64M	305.25M	409.63M
	EBIT
7.66M	48.46M	16.66M	-72.86M	-17.26M
	EBITDA
56.35M	129.10M	109.37M	-16.27M	-194.96M
	Net Income Common Stockholders
-24.65M	54.16M	21.27M	-69.66M	-301.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.90M	77.71M	99.00M	88.97M	64.23M
	Total Assets
855.46M	960.27M	937.77M	913.92M	829.34M
	Total Debt
157.60M	191.11M	192.96M	311.04M	139.07M
	Net Debt
82.70M	113.40M	93.96M	222.07M	74.84M
	Total Liabilities
459.68M	521.35M	571.68M	727.55M	487.35M
	Stockholders Equity
379.20M	409.92M	326.74M	147.32M	342.06M
Cash Flow		Free Cash Flow
34.50M	-6.71M	-2.66M	-23.38M	-24.91M
	Operating Cash Flow
47.71M	9.16M	17.30M	885.00K	26.55M
	Investing Cash Flow
-8.65M	-15.67M	-9.76M	-133.20M	-41.01M
	Financing Cash Flow
-40.47M	-16.81M	2.07M	168.89M	-108.04M

Safilo Group SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SFL, the sentiment is Neutral. The current price of 0.83 is above the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.81, and below the 200-day MA of 0.96, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 76.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:SFL.

Safilo Group SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONC	71 Outperform	€14.83B	23.17	18.81%	2.10%	4.18%	4.35%
SFL	64 Neutral	€310.68M	14.54	5.63%	―	-3.08%	―
PRY	62 Neutral	€14.74B	19.54	16.44%	1.52%	10.89%	32.38%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%
GEO	51 Neutral	€97.32M	―	-38.29%	―	-7.76%	-366.01%

Safilo Group SpA Corporate Events

Safilo Group Reports Strong Start to 2025 with Increased Sales and Margins

Safilo Group S.p.A. reported a strong start to 2025 with increased sales and improved margins, despite global uncertainties. The company’s net sales rose to €285.8 million, driven by growth in Europe and the Asia-Pacific region, and a recovery in North America. The performance was bolstered by the success of brands like Smith, Carrera, and David Beckham. Safilo’s strategic focus on innovation and customer engagement, along with operational agility, has positioned it well for long-term value creation.

Safilo Group Releases Documentation Ahead of April 2025 Meeting

Safilo Group S.p.A. has released documentation related to its upcoming Ordinary Meeting on April 24, 2025, which includes various reports and financial statements. This announcement underscores the company’s commitment to transparency and governance, potentially impacting its stakeholders by providing insights into its financial health and strategic direction.

Safilo Group S.p.A. Calls for Shareholder Meeting to Approve Financials and Remuneration Policy

Safilo Group S.p.A. has announced an Ordinary Meeting for its shareholders on April 24, 2025, to discuss and approve the financial statements for the year ending December 31, 2024, and to vote on the remuneration policy report. The meeting will be conducted exclusively through a designated representative, Computershare S.p.A., due to the company’s decision to avoid physical participation. This approach ensures streamlined participation and voting processes, potentially impacting shareholder engagement and decision-making dynamics.

Safilo Group Unveils New Stock Option Plan for 2023-2025

Safilo Group S.p.A. announced a stock option plan for 2023-2025, approved by its shareholders, which involves the free allocation of option rights to purchase ordinary shares. This initiative, involving 500,000 options at no initial cost, is part of the company’s strategy to incentivize and retain key personnel, potentially impacting its operational dynamics and stakeholder interests.

Safilo Group Reports 2024 Financial Results with Strategic Focus on Sustainability and Brand Growth

Safilo Group S.p.A. reported its 2024 financial results, highlighting a 2.3% decline in net sales due to challenges in the North American market and the end of the Jimmy Choo license, though growth was supported by strong performance in Europe. The company improved its gross industrial margin and adjusted EBITDA margin, strengthened cash generation, and made significant strides in sustainability by reducing emissions and increasing the use of recycled materials. Safilo’s strategic focus on brand portfolio management and sustainability initiatives positions it to navigate ongoing macroeconomic challenges while aiming for future revenue growth.

Safilo Group and Special Olympics Extend Partnership to 2027

Safilo Group and Special Olympics have renewed their partnership until 2027, continuing a collaboration that has improved the lives of athletes with intellectual disabilities by providing essential eye care and eyewear. This renewal underscores Safilo’s commitment to inclusion and accessibility, aligning with its sustainability strategy focused on planet, product, and people. The partnership has facilitated access to eye health services for Special Olympics athletes globally, enhancing their sports performance and everyday life.