DB:PRP

Stock Analysis Report

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Executive Summary

Prada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, Africa, and internationally.

Rewards

Earnings are forecast to grow 0.8% per year

Earnings grew by 24.5% over the past year

Risk Analysis

No risks detected for PRP from our risk checks.


Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

How has Prada's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

PRP

3.6%

DE Luxury

2.8%

DE Market


1 Year Return

10.6%

PRP

-11.3%

DE Luxury

0.2%

DE Market

Return vs Industry: PRP exceeded the German Luxury industry which returned -11.3% over the past year.

Return vs Market: PRP exceeded the German Market which returned 0.3% over the past year.


Shareholder returns

PRPIndustryMarket
7 Day1.9%3.6%2.8%
30 Day-7.1%-7.9%-1.6%
90 Day15.4%22.9%22.0%
1 Year10.6%10.6%-11.3%-11.3%2.3%0.2%
3 Year10.4%6.1%39.1%34.4%3.4%-5.0%
5 Year-19.8%-28.1%178.5%153.0%11.4%-3.4%

Price Volatility Vs. Market

How volatile is Prada's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Prada undervalued compared to its fair value and its price relative to the market?

31.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PRP (€3.14) is trading above our estimate of fair value (€0.47)

Significantly Below Fair Value: PRP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PRP is poor value based on its PE Ratio (31.6x) compared to the Luxury industry average (29x).

PE vs Market: PRP is poor value based on its PE Ratio (31.6x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: PRP is poor value based on its PEG Ratio (39.4x)


Price to Book Ratio

PB vs Industry: PRP is overvalued based on its PB Ratio (2.7x) compared to the DE Luxury industry average (1.6x).


Next Steps

Future Growth

How is Prada forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRP's forecast earnings growth (0.8% per year) is above the savings rate (0.2%).

Earnings vs Market: PRP's earnings (0.8% per year) are forecast to grow slower than the German market (22.3% per year).

High Growth Earnings: PRP's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRP's revenue (3.3% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: PRP's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRP's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Prada performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRP has high quality earnings.

Growing Profit Margin: PRP's current net profit margins (7.9%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: PRP's earnings have declined by -12.2% per year over the past 5 years.

Accelerating Growth: PRP's earnings growth over the past year (24.5%) exceeds its 5-year average (-12.2% per year).

Earnings vs Industry: PRP earnings growth over the past year (24.5%) exceeded the Luxury industry -27%.


Return on Equity

High ROE: PRP's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Prada's financial position?


Financial Position Analysis

Short Term Liabilities: PRP's short term assets (€1.7B) exceed its short term liabilities (€1.2B).

Long Term Liabilities: PRP's short term assets (€1.7B) do not cover its long term liabilities (€2.8B).


Debt to Equity History and Analysis

Debt Level: PRP's debt to equity ratio (27.7%) is considered satisfactory.

Reducing Debt: PRP's debt to equity ratio has increased from 16.7% to 27.7% over the past 5 years.

Debt Coverage: PRP's debt is well covered by operating cash flow (97.7%).

Interest Coverage: PRP's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Prada current dividend yield, its reliability and sustainability?

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRP's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: PRP's dividend (0.63%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: PRP is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: PRP is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: PRP is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PRP's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average management tenure


CEO

Patrizio Bertelli (74yo)

8.08yrs

Tenure

€12,574,000

Compensation

Mr. Patrizio Bertelli serves as the Chief Executive Officer at Prada S.p.A since June 7, 2012. He is Co-Founder at Prada Holding B.V. He serves as an Executive Director since November 20, 2003 and Director ...


CEO Compensation Analysis

Compensation vs Market: Patrizio's total compensation ($USD14.14M) is above average for companies of similar size in the German market ($USD3.52M).

Compensation vs Earnings: Patrizio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Carlo Mazzi
Chairman6.42yrs€1.12mno data
Patrizio Bertelli
CEO & Executive Director8.08yrs€12.57mno data
Miuccia Prada Bianchi
CEO, President & Executive Director16.67yrs€12.57mno data
Alessandra Cozzani
CFO, Investor Relations Director & Executive Director6.58yrs€640.00kno data
Lorenzo Bertelli
Head of Group Marketing & Communicationno datano datano data
Stefano Rastrelli
Group Human Resources Director7.5yrsno datano data
Patrizia Albano
Group Corporate Affairs Director & Joint Company Secretaryno datano datano data
Ying-Kwai Yuen
Joint Company Secretary9.17yrsno datano data
Anthony Romano
Church Group Chief Executive Officer3.5yrsno datano data
Armando Tolomelli
Asia Pacific Regional Director15yrsno datano data

7.5yrs

Average Tenure

57yo

Average Age

Experienced Management: PRP's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlo Mazzi
Chairman6.42yrs€1.12mno data
Patrizio Bertelli
CEO & Executive Director8.08yrs€12.57mno data
Miuccia Prada Bianchi
CEO, President & Executive Director16.67yrs€12.57mno data
Alessandra Cozzani
CFO, Investor Relations Director & Executive Director6.58yrs€640.00kno data
Gian Franco Mattei
Independent Non Executive Director11.17yrs€153.00kno data
Maurizio Cereda
Independent Non-Executive Director4.17yrs€83.00kno data
Antonino Parisi
Chairman of Board of Statutory Auditorsno datano datano data
Sing Liu
Independent Non-Executive Director9.17yrs€74.00kno data
Giancarlo Forestieri
Independent Non-Executive Director13.17yrs€70.00kno data
David Terracina
Standing Member of Board of Statutory Auditors8.17yrsno datano data

9.2yrs

Average Tenure

72.5yo

Average Age

Experienced Board: PRP's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Prada S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prada S.p.A.
  • Ticker: PRP
  • Exchange: DB
  • Founded: 1913
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$70.368b
  • Listing Market Cap: HK$8.076b
  • Shares outstanding: 2.56b
  • Website: https://www.pradagroup.com/en.html

Number of Employees


Location

  • Prada S.p.A.
  • Via Antonio Fogazzaro, 28
  • Milan
  • Milan
  • 20135
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1913SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2011
PRDS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2011
PRPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2011
PRPSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJun 2011
PRDS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2011

Biography

Prada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, Africa, and internationally. It offers its products under the Prada, Miu Miu, Church’s, and Car Shoe brands. The company also provides eyewear and fragrances under licensing agreements. As of December 31, 2019, it had 641 directly operated stores. The company also sells its products through a network of approximately 25 franchise operated stores; multi-brand stores; luxury department stores; independent retailers; and online retailers. In addition, it engages in the real estate business; and operates patisserie and duty-free stores. The company was founded in 1913 and is headquartered in Milan, Italy. Prada S.p.A. operates as a subsidiary of Prada Holding S.p.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 21:10
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.