Prada (PRDSY) AI Stock Analysis

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Prada

(OTC:PRDSY)

77Outperform

Prada's overall stock score reflects its strong financial performance, positive earnings call highlights, and reasonable valuation. The company's robust profitability, efficient cash management, and strategic brand initiatives are significant strengths. However, mixed technical indicators and market volatility, particularly in China and Japan, pose challenges. The stock is well-positioned within the luxury goods sector, but potential investors should be mindful of external market conditions.

Prada (PRDSY) vs. S&P 500 (SPY)

Market Cap

$17.14B

Dividend Yield1.41%

Average Volume (3M)18.01K

Price to Earnings (P/E)18.9

Beta (1Y)0.59

Revenue Growth14.98%

EPS Growth25.10%

CountryUS

Employees15,216

SectorConsumer Cyclical

Sector Strength75

IndustryLuxury Goods

Share Statistics

EPS (TTM)0.71

Shares Outstanding1,279,412,000

10 Day Avg. Volume7,638

30 Day Avg. Volume18,011

Financial Highlights & Ratios

PEG Ratio3.89

Price to Book (P/B)4.39

Price to Sales (P/S)0.00

P/FCF Ratio22.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Prada Business Overview & Revenue Model

Company DescriptionPrada S.p.A. (PRDSY) is a leading global luxury fashion house based in Italy, known for its high-end fashion products, including leather goods, ready-to-wear apparel, footwear, accessories, eyewear, fragrances, and home furnishings. Founded in 1913 by Mario Prada, the company is recognized for its innovative designs and exceptional craftsmanship, catering to a discerning clientele worldwide. Prada operates a range of brands, including Prada, Miu Miu, Church's, and Car Shoe, each known for its distinct style and premium quality.

How the Company Makes MoneyPrada makes money primarily through the design, production, and sale of luxury fashion goods. The company's revenue streams include retail sales from its directly operated stores, wholesale distribution to high-end department stores and specialty boutiques, and e-commerce sales through its website and third-party platforms. Prada also generates income from licensing agreements, where it authorizes other companies to produce and sell products under its brand name. Significant factors contributing to its earnings include its strong brand recognition, innovative product design, and strategic location of retail outlets in major fashion capitals and affluent markets. Additionally, Prada benefits from its vertically integrated business model, which allows for greater control over production, quality, and distribution.

Prada Financial Statement Overview

Summary

Prada shows strong financial performance with significant revenue growth and high profitability. The balance sheet is solid with manageable leverage, while cash flows indicate effective cash generation, albeit with some fluctuations. Continued focus on reducing debt and enhancing free cash flow will further strengthen the company's financial position.

Income Statement

Very Positive

Prada's income statement displays robust growth and profitability. The gross profit margin is strong at 80.42%, and the net profit margin stands at 14.20%, indicating effective cost management. The revenue growth rate from 2022 to 2023 is 14.30%, highlighting significant top-line expansion. EBIT and EBITDA margins are healthy at 22.47% and 36.50%, respectively, suggesting efficient operational performance.

Balance Sheet

Positive

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.68, indicating moderate leverage. The return on equity is impressive at 17.40%, showcasing effective use of shareholder capital. The equity ratio of 50.62% demonstrates a balanced capital structure, although there is room for improvement in reducing debt levels.

Cash Flow

Positive

Cash flow analysis reveals strong operational cash flows with an operating cash flow to net income ratio of 1.72, indicating good cash generation relative to profits. However, the free cash flow decreased by 54.47% from the previous year, which may signal higher capital expenditures or changes in working capital requirements. The free cash flow to net income ratio is 0.59, reflecting prudent cash management, but highlighting potential for improvement.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
3.93B	4.73B	4.13B	3.37B	2.42B	3.23B
	Gross Profit
4.04B	3.80B	2.63B	2.55B	1.74B	2.32B
	EBIT
1.20B	1.06B	834.53M	467.67M	1.10M	293.96M
	EBITDA
686.38M	1.73B	1.42B	1.09B	648.73M	972.58M
	Net Income Common Stockholders
383.50M	671.03M	465.19M	294.25M	-54.14M	255.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
362.28M	689.52M	1.09B	981.79M	442.39M	421.07M
	Total Assets
2.94B	7.62B	7.35B	6.96B	6.53B	7.04B
	Total Debt
168.04M	2.60B	2.65B	2.79B	2.89B	3.24B
	Net Debt
-194.25M	1.91B	1.57B	1.81B	2.44B	2.82B
	Total Liabilities
1.11B	3.74B	3.86B	3.83B	3.68B	4.05B
	Stockholders Equity
1.82B	3.86B	3.47B	3.11B	2.83B	2.97B
Cash Flow		Free Cash Flow
764.83M	395.61M	868.84M	923.90M	482.86M	498.94M
	Operating Cash Flow
1.55B	1.16B	1.11B	1.14B	592.42M	809.89M
	Investing Cash Flow
-783.25M	-759.19M	-246.75M	-137.26M	-149.91M	-302.26M
	Financing Cash Flow
-866.03M	-775.73M	-775.04M	-494.73M	-395.27M	-692.49M

Prada Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price13.78

Price Trends

50DMA

13.12

Positive

100DMA

14.64

Negative

200DMA

14.39

Negative

Market Momentum

MACD

0.17

Negative

RSI

53.25

Neutral

STOCH

70.17

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDSY, the sentiment is Neutral. The current price of 13.78 is above the 20-day moving average (MA) of 12.78, above the 50-day MA of 13.12, and below the 200-day MA of 14.39, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 70.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRDSY.

Prada Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDSY	77 Outperform	$17.14B	18.91	20.60%	1.41%	14.98%	25.10%
TPR	76 Outperform	$17.11B	21.67	40.27%	1.70%	2.67%	1.31%
RL	76 Outperform	$17.15B	25.02	27.57%	1.19%	5.23%	24.63%
MTN	74 Outperform	$5.69B	22.34	38.12%	5.83%	3.57%	13.75%
SCI	73 Outperform	$11.13B	21.53	32.71%	1.56%	2.40%	4.07%
ZGN	66 Neutral	$3.50B	26.09	8.89%	1.50%	2.26%	-37.52%
Sector *	62 Neutral	$6.98B	11.38	2.86%	3.90%	2.64%	-22.07%

* Consumer Cyclical Sector Average

Performance Comparison

PRDSY

Prada

13.26

-1.86

-12.30%

TPR

Tapestry

82.52

41.27

100.05%

Ralph Lauren

280.20

114.88

69.49%

SCI

Service International

77.65

8.63

12.50%

MTN

Vail Resorts

150.78

-39.95

-20.95%

ZGN

Ermenegildo Zegna

8.59

-4.09

-32.26%

Prada Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 10.77%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive overall performance with strong retail growth and successful brand initiatives. However, challenges remain due to market volatility and difficult comparisons in key regions like China and Japan.

Q1-2025 Updates

Positive Updates

Strong Retail Growth

Prada Group recorded a 13% increase in retail sales at constant FX, driven by like-for-like and full-price sales.

Miu Miu's Remarkable Performance

Miu Miu achieved a 60% growth at constant FX, with a significant increase in brand contribution to group retail sales from 22% to 31% compared to fiscal year 2024.

Geographical Sales Growth

The group saw robust growth across all regions, with the Middle East leading at 26% growth, followed by Japan at 18%, Europe at 14%, and the Americas at 10%.

Innovative Brand Initiatives

Prada and Miu Miu both launched unique projects such as Prada's cultural landmarks in Shanghai and Miu Miu's Custom Studio, which were well received.

Negative Updates

Market Volatility

The overall market environment remains challenging and unstable, with irregular trends making it difficult to predict future performance.

Chinese Market Volatility

Prada experienced volatility in the Chinese market, with a negative trend in Q1 2025 compared to the positive double-digit growth of Q1 2024.

Complex Comparisons in Japan

Japan's growth is expected to moderate due to difficult comparisons with the extraordinary growth witnessed in the first half of 2024.

Company Guidance

During the Prada Group's First Quarter 2025 Revenue Update call, the company reported net revenues of €1.34 billion, marking a 13% increase at constant exchange rates compared to the previous year. Retail sales reached €1.22 billion, driven by like-for-like and full-price sales, also up 13%. The wholesale channel grew by 7%, while royalties increased by 13%, supported by eyewear and fragrances. By brand, Miu Miu showed a remarkable growth of 60% at constant exchange rates, increasing its contribution to group retail sales to 31% from 22% in 2024. Geographically, the Middle East led with a 26% increase in retail sales, while Japan saw an 18% rise, although it is expected to moderate. Europe and the Americas posted growths of 14% and 10%, respectively, and Asia Pacific saw a 10% increase despite challenging market conditions. The company emphasized its strategic investments in North America and store expansions while acknowledging the ongoing challenges in the market.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.