Market Cap
€8.1b
Last Updated
2020/07/05 21:10 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, Africa, and internationally.
Rewards
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
| PRP | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 3.6% | 2.8% |
| 30 Day | -7.1% | -7.9% | -1.6% |
| 90 Day | 15.4% | 22.9% | 22.0% |
| 1 Year | 10.6%10.6% | -11.3%-11.3% | 2.3%0.2% |
| 3 Year | 10.4%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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6.42yrs | €1.12m | no data | |
| CEO & Executive Director | 8.08yrs | €12.57m | no data | |
| CEO, President & Executive Director | 16.67yrs | €12.57m | no data | |
| CFO, Investor Relations Director & Executive Director | 6.58yrs | €640.00k | no data | |
| Head of Group Marketing & Communication | no data | no data | no data | |
| Group Human Resources Director | 7.5yrs | no data | no data | |
| Group Corporate Affairs Director & Joint Company Secretary | no data | no data | no data | |
| Joint Company Secretary | 9.17yrs | no data | no data | |
| Church Group Chief Executive Officer | 3.5yrs | no data | no data | |
| Asia Pacific Regional Director | 15yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6.42yrs | €1.12m | no data | |
| CEO & Executive Director | 8.08yrs | €12.57m | no data | |
| CEO, President & Executive Director | 16.67yrs | €12.57m | no data | |
| CFO, Investor Relations Director & Executive Director | 6.58yrs | €640.00k | no data | |
| Independent Non Executive Director | 11.17yrs | €153.00k | no data | |
| Independent Non-Executive Director | 4.17yrs | €83.00k | no data | |
| Chairman of Board of Statutory Auditors | no data | no data | no data | |
| Independent Non-Executive Director | 9.17yrs | €74.00k | no data | |
| Independent Non-Executive Director | 13.17yrs | €70.00k | no data | |
| Standing Member of Board of Statutory Auditors | 8.17yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1913 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jun 2011 |
| PRDS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2011 |
| PRP | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2011 |
| PRP | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Jun 2011 |
| PRDS.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 21:10 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.