SEHK:1913

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. More Details

Rewards

Earnings are forecast to grow 110.03% per year

Risk Analysis

No risks detected for 1913 from our risk checks.


Snowflake Analysis

Moderate 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: 1913 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

1913

-2.3%

HK Luxury

-2.6%

HK Market


1 Year Return

33.2%

1913

4.3%

HK Luxury

-0.3%

HK Market

Return vs Industry: 1913 exceeded the Hong Kong Luxury industry which returned 6% over the past year.

Return vs Market: 1913 exceeded the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

1913IndustryMarket
7 Day-2.2%-2.3%-2.6%
30 Day-0.6%1.2%-4.2%
90 Day10.6%12.3%0.7%
1 Year33.2%33.2%6.4%4.3%3.7%-0.3%
3 Year23.7%18.8%39.0%26.5%-5.1%-15.3%
5 Year16.0%4.0%65.2%40.9%25.0%4.0%

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

Valuation

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

3.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1913 (HK$31.25) is trading above our estimate of fair value (HK$4.48)

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


Price To Earnings Ratio

PE vs Industry: 1913 is unprofitable, so we can't compare its PE Ratio to the HK Luxury industry average.

PE vs Market: 1913 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1913's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1913 is overvalued based on its PB Ratio (3.2x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is Prada forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

110.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1913 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 1913 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1913's is expected to become profitable in the next 3 years.

Revenue vs Market: 1913's revenue (10.7% per year) is forecast to grow slower than the Hong Kong market (13.1% per year).

High Growth Revenue: 1913's revenue (10.7% 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 (6.5%).


Next Steps

Past Performance

How has Prada performed over the past 5 years?

-19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1913 is currently unprofitable.

Growing Profit Margin: 1913 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1913 is unprofitable, and losses have increased over the past 5 years at a rate of 19.6% per year.

Accelerating Growth: Unable to compare 1913's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1913 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-36.3%).


Return on Equity

High ROE: 1913 has a negative Return on Equity (-2.91%), as it is currently unprofitable.


Next Steps

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 (€1.4B).

Long Term Liabilities: 1913's short term assets (€1.7B) do not cover its long term liabilities (€2.6B).


Debt to Equity History and Analysis

Debt Level: 1913's debt to equity ratio (38%) is considered satisfactory.

Reducing Debt: 1913's debt to equity ratio has increased from 23.2% to 38% over the past 5 years.

Debt Coverage: 1913's debt is well covered by operating cash flow (57%).

Interest Coverage: 1913 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.01%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1913's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1913's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1913's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1913's dividend payments have been 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?

7.1yrs

Average management tenure


CEO

Patrizio Bertelli (74 yo)

8.25yrs

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 ($USD14.72M) is above average for companies of similar size in the Hong Kong market ($USD805.77K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Carlo Mazzi
Chairman6.58yrs€1.12mno data
Patrizio Bertelli
CEO & Executive Director8.25yrs€12.57mno data
Miuccia Prada Bianchi
CEO, President & Executive Director16.83yrs€12.57mno data
Alessandra Cozzani
CFO, Investor Relations Director & Executive Director6.75yrs€640.00kno data
Lorenzo Bertelli
Head of Group Marketing & Communicationno datano datano data
Stefano Rastrelli
Group Human Resources Director7.67yrsno datano data
Patrizia Albano
Group Corporate Affairs Director & Joint Company Secretaryno datano datano data
Ying-Kwai Yuen
Joint Company Secretary9.33yrsno datano data
Anthony Romano
Church Group Chief Executive Officer3.67yrsno datano data
Armando Tolomelli
Asia Pacific Regional Director15.17yrsno datano data
Gianluca Andriani
Group Internal Audit & Risk Management Director0.58yrno datano data

7.1yrs

Average Tenure

57yo

Average Age

Experienced Management: 1913's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlo Mazzi
Chairman6.58yrs€1.12mno data
Patrizio Bertelli
CEO & Executive Director8.25yrs€12.57mno data
Miuccia Prada Bianchi
CEO, President & Executive Director16.83yrs€12.57mno data
Alessandra Cozzani
CFO, Investor Relations Director & Executive Director6.75yrs€640.00kno data
Gian Franco Mattei
Independent Non Executive Director11.33yrs€153.00kno data
Roberto Spada
Standing Member of Board of Statutory Auditors8.33yrsno datano data
Maurizio Cereda
Independent Non-Executive Director4.33yrs€83.00kno data
Antonino Parisi
Chairman of Board of Statutory Auditorsno datano datano data
Sing Liu
Independent Non-Executive Director9.33yrs€74.00kno data
Giancarlo Forestieri
Independent Non-Executive Director13.33yrs€70.00kno data
David Terracina
Standing Member of Board of Statutory Auditors8.33yrsno datano data
Stefano Simontacchi
Non-Executive Director4.42yrs€52.00kno data

8.3yrs

Average Tenure

68yo

Average Age

Experienced Board: 1913's board of directors are considered experienced (8.3 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.


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: 1913
  • Exchange: SEHK
  • Founded: 1913
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$79.068b
  • 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 Eas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 19:12
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
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.