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1913

PradaSEHK:1913 Stock Report

Market Cap

HK$106.3b

7D

-0.5%

1Y

29.0%

Updated

27 Sep, 2021

Data

Company Financials +
1913 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends0/6

1913 Overview

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.

Rewards

Earnings are forecast to grow 25.04% per year

Became profitable this year

Risk Analysis

No risks detected for 1913 from our risk checks.

Prada Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Prada
Historical stock prices
Current Share PriceHK$41.55
52 Week HighHK$29.10
52 Week LowHK$65.30
Beta1.38
1 Month Change-7.46%
3 Month Change-28.05%
1 Year Change29.04%
3 Year Change10.80%
5 Year Change61.99%
Change since IPO4.92%

Recent News & Updates

Aug 20
Prada (HKG:1913) Might Be Having Difficulty Using Its Capital Effectively

Prada (HKG:1913) Might Be Having Difficulty Using Its Capital Effectively

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Jun 24
We Think Prada (HKG:1913) Can Stay On Top Of Its Debt

We Think Prada (HKG:1913) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

1913HK LuxuryHK Market
7D-0.5%-8.4%-2.4%
1Y29.0%72.2%9.1%

Return vs Industry: 1913 underperformed the Hong Kong Luxury industry which returned 72.2% over the past year.

Return vs Market: 1913 exceeded the Hong Kong Market which returned 9.1% over the past year.

Price Volatility

Is 1913's price volatile compared to industry and market?
1913 volatility
1913 Beta1.38
Industry Beta0.91
Market Beta1

Stable Share Price: 1913 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1913's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191312,619Patrizio Bertellihttps://www.pradagroup.com/en.html

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. 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 well as operates in the food sector under the Marchesi 1824 brand.

Prada Fundamentals Summary

How do Prada's earnings and revenue compare to its market cap?
1913 fundamental statistics
Market Cap€11.66b
Earnings (TTM)€223.44m
Revenue (TTM)€2.99b

52.2x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1913 income statement (TTM)
Revenue€2.99b
Cost of Revenue€788.05m
Gross Profit€2.20b
Expenses€1.97b
Earnings€223.44m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 10, 2022

Earnings per share (EPS)0.087
Gross Margin73.61%
Net Profit Margin7.48%
Debt/Equity Ratio24.5%

How did 1913 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

40%

Payout Ratio

Valuation

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

52.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1913 (HK$41.55) is trading above our estimate of fair value (HK$23.64)

Significantly Below Fair Value: 1913 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1913 is poor value based on its PE Ratio (52.2x) compared to the Hong Kong Luxury industry average (9.1x).

PE vs Market: 1913 is poor value based on its PE Ratio (52.2x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 1913 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 1913 is overvalued based on its PB Ratio (4x) compared to the HK Luxury industry average (0.8x).


Future Growth

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

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1913's forecast earnings growth (25% per year) is above the savings rate (1.5%).

Earnings vs Market: 1913's earnings (25% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1913's revenue (8.8% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 1913's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1913's Return on Equity is forecast to be low in 3 years time (15.1%).


Past Performance

How has Prada performed over the past 5 years?

-26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1913 has high quality earnings.

Growing Profit Margin: 1913 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 1913's earnings have declined by 26.7% per year over the past 5 years.

Accelerating Growth: 1913 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1913 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (37.6%).


Return on Equity

High ROE: 1913's Return on Equity (7.8%) is considered low.


Financial Health

How is Prada's financial position?


Financial Position Analysis

Short Term Liabilities: 1913's short term assets (€1.7B) exceed its short term liabilities (€1.3B).

Long Term Liabilities: 1913's short term assets (€1.7B) do not cover its long term liabilities (€2.4B).


Debt to Equity History and Analysis

Debt Level: 1913's debt to equity ratio (24.5%) is considered satisfactory.

Reducing Debt: 1913's debt to equity ratio has reduced from 31.8% to 24.5% over the past 5 years.

Debt Coverage: 1913's debt is well covered by operating cash flow (134%).

Interest Coverage: 1913's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Dividend

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

0.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1913's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1913's dividend (0.77%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.84%).


Stability and Growth of Payments

Stable Dividend: 1913 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1913 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1913 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1913's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Patrizio Bertelli (75 yo)

9.25yrs

Tenure

€9,139,000

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: Patrizio's total compensation ($USD10.70M) is above average for companies of similar size in the Hong Kong market ($USD1,000.00K).

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


Leadership Team

Experienced Management: 1913's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: 1913's board of directors are considered experienced (5.4 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 employee growth, exchange listings and data sources


Key Information

  • Name: Prada S.p.A.
  • Ticker: 1913
  • Exchange: SEHK
  • Founded: 1913
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$106.319b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:36
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.