DB:PRP

Stock Analysis Report

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Market Cap

€14.6b

Last Updated

2021/07/25 17:55 UTC

Data Sources

Company Financials +

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, and Africa. More Details

Rewards

Earnings are forecast to grow 42.24% per year

Risk Analysis

No risks detected for PRP from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PRP's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

PRP

2.3%

DE Luxury

0.9%

DE Market


1 Year Return

89.8%

PRP

39.4%

DE Luxury

25.2%

DE Market

Return vs Industry: PRP exceeded the German Luxury industry which returned 39.4% over the past year.

Return vs Market: PRP exceeded the German Market which returned 25.2% over the past year.


Shareholder returns

PRPIndustryMarket
7 Day1.6%2.3%0.9%
30 Day-7.8%8.8%0.5%
90 Day10.4%19.5%2.5%
1 Year91.0%89.8%40.7%39.4%29.2%25.2%
3 Year43.4%39.4%70.6%66.4%28.1%17.4%
5 Year131.4%113.7%138.1%124.9%54.9%33.7%

Long-Term 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?

5.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PRP (€5.77) is trading above our estimate of fair value (€2.61)

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


Price To Earnings Ratio

PE vs Industry: PRP is unprofitable, so we can't compare its PE Ratio to the German Luxury industry average.

PE vs Market: PRP is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRP is overvalued based on its PB Ratio (5.1x) compared to the DE Luxury industry average (2.3x).


Future Growth

How is Prada forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

42.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.01%).

Earnings vs Market: PRP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PRP's is expected to become profitable in the next 3 years.

Revenue vs Market: PRP's revenue (11.6% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: PRP's revenue (11.6% 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 (12.8%).


Past Performance

How has Prada performed over the past 5 years?

-29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRP is currently unprofitable.

Growing Profit Margin: PRP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRP is unprofitable, and losses have increased over the past 5 years at a rate of 29.5% per year.

Accelerating Growth: Unable to compare PRP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PRP is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-14%).


Return on Equity

High ROE: PRP has a negative Return on Equity (-1.91%), as it is currently unprofitable.


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 (€2.4B).


Debt to Equity History and Analysis

Debt Level: PRP's debt to equity ratio (26.5%) is considered satisfactory.

Reducing Debt: PRP's debt to equity ratio has increased from 25.1% to 26.5% over the past 5 years.

Debt Coverage: PRP's debt is well covered by operating cash flow (78.5%).

Interest Coverage: PRP's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

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

0.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRP's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the German market (0.97%).

High Dividend: PRP's dividend (0.62%) is low compared to the top 25% of dividend payers in the German market (3.17%).


Stability and Growth of Payments

Stable Dividend: PRP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PRP has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: PRP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PRP's dividends in 3 years are forecast to be covered by earnings (60.6% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Patrizio Bertelli (75 yo)

9.08yrs

Tenure

€12,574,000

Compensation

Mr. Patrizio Bertelli is the Founder of Prada S.p. A and has been its Chief Executive Officer since June 7, 2012. He serves as an Executive Director since November 20, 2003 and Director from November 20, 2...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Patrizio's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Patrizio's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: PRP's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: PRP's board of directors are considered experienced (5.3 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.


Recent Insider Transactions

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$133.059b
  • Listing Market Cap: HK$14.558b
  • 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


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 Eas...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 17:55
End of Day Share Price2021/07/23 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.