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Prada

SEHK:1913
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1913
SEHK
HK$57B
Market Cap
  1. Home
  2. HK
  3. Consumer Durables
Company description

Prada S.p.A., together with its subsidiaries, designs, produces, sells, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and Africa. The last earnings update was 30 days ago. More info.


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  • Prada has significant price volatility in the past 3 months.
1913 Share Price and Events
7 Day Returns
0.2%
SEHK:1913
0.8%
HK Luxury
-1.3%
HK Market
1 Year Returns
-45.4%
SEHK:1913
-5.1%
HK Luxury
-5.7%
HK Market
1913 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Prada (1913) 0.2% -5.8% -15% -45.4% -15.8% -64.3%
HK Luxury 0.8% 2.7% 14% -5.1% 17.4% 8.7%
HK Market -1.3% 3.2% 9.8% -5.7% 27% 20.8%
1 Year Return vs Industry and Market
  • 1913 underperformed the Luxury industry which returned -5.1% over the past year.
  • 1913 underperformed the Market in Hong Kong which returned -5.7% over the past year.
Price Volatility
1913
Industry
5yr Volatility vs Market

Value

 Is Prada undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Prada to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Prada.

SEHK:1913 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1913
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 9%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.73 (1 + (1- 24%) (14.17%))
0.872
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.872 * 9.02%)
9.86%

Discounted Cash Flow Calculation for SEHK:1913 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Prada is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1913 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 9.86%)
2019 296.49 Analyst x8 269.86
2020 313.20 Analyst x9 259.48
2021 333.53 Analyst x5 251.51
2022 368.00 Analyst x2 252.59
2023 385.00 Analyst x1 240.53
2024 399.49 Est @ 3.76% 227.17
2025 412.42 Est @ 3.24% 213.46
2026 424.23 Est @ 2.87% 199.87
2027 435.29 Est @ 2.61% 186.66
2028 445.85 Est @ 2.43% 174.02
Present value of next 10 years cash flows €2,275.16
SEHK:1913 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €445.85 × (1 + 2%) ÷ (9.86% – 2%)
€5,784.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €5,784.75 ÷ (1 + 9.86%)10
€2,257.88
SEHK:1913 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €2,275.16 + €2,257.88
€4,533.04
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €4,533.04 / 2,558.82
€1.77
SEHK:1913 Discount to Share Price
Calculation Result
Exchange Rate EUR/HKD
(Reporting currency to currency of SEHK:1913)
8.777
Value per Share
(HKD)
= Value per Share in EUR x Exchange Rate (EUR/HKD)
= €1.77 x 8.777
HK$15.55
Value per share (HKD) From above. HK$15.55
Current discount Discount to share price of HK$22.10
= -1 x (HK$22.10 - HK$15.55) / HK$15.55
-42.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Prada is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Prada's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Prada's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1913 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.08
SEHK:1913 Share Price ** SEHK (2019-04-25) in HKD HK$22.1
SEHK:1913 Share Price converted to EUR reporting currency Exchange rate (HKD/ EUR) 0.114 €2.52
Hong Kong Luxury Industry PE Ratio Median Figure of 76 Publicly-Listed Luxury Companies 10.78x
Hong Kong Market PE Ratio Median Figure of 1,476 Publicly-Listed Companies 12.09x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Prada.

SEHK:1913 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1913 Share Price ÷ EPS (both in EUR)

= 2.52 ÷ 0.08

31.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prada is overvalued based on earnings compared to the HK Luxury industry average.
  • Prada is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Prada's expected growth come at a high price?
Raw Data
SEHK:1913 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
13.6%per year
Hong Kong Luxury Industry PEG Ratio Median Figure of 22 Publicly-Listed Luxury Companies 0.9x
Hong Kong Market PEG Ratio Median Figure of 465 Publicly-Listed Companies 0.86x

*Line of best fit is calculated by linear regression .

SEHK:1913 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.36x ÷ 13.6%

2.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prada is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Prada's assets?
Raw Data
SEHK:1913 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €1.12
SEHK:1913 Share Price * SEHK (2019-04-25) in HKD HK$22.1
SEHK:1913 Share Price converted to EUR reporting currency Exchange rate (HKD/ EUR) 0.114 €2.52
Hong Kong Luxury Industry PB Ratio Median Figure of 120 Publicly-Listed Luxury Companies 1.09x
Hong Kong Market PB Ratio Median Figure of 2,150 Publicly-Listed Companies 1.02x
SEHK:1913 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1913 Share Price ÷ Book Value per Share (both in EUR)

= 2.52 ÷ 1.12

2.24x

* Primary Listing of Prada.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prada is overvalued based on assets compared to the HK Luxury industry average.
X
Value checks
We assess Prada's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Prada has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Prada expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Prada expected to grow at an attractive rate?
  • Prada's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Prada's earnings growth is expected to exceed the Hong Kong market average.
  • Prada's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1913 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1913 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 13.6%
SEHK:1913 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 5.1%
Hong Kong Luxury Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
Hong Kong Luxury Industry Revenue Growth Rate Market Cap Weighted Average 11.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.9%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 11.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1913 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1913 Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 3,715 1
2021-12-31 3,689 589 331 17
2020-12-31 3,498 550 298 23
2019-12-31 3,317 525 295 24
SEHK:1913 Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 3,142 365 205
2017-12-31 2,990 487 238
2017-07-31 3,099 573 252
2017-04-30 3,141 603 265
2017-01-31 3,184 632 278
2016-10-31 3,334 617 306
2016-07-31 3,278 572 284
2016-04-30 3,497 476 343
2016-01-31 3,548 368 331

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Prada's earnings are expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).
  • Prada's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1913 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from Prada Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1913 Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.13 0.18 0.11 17.00
2020-12-31 0.12 0.16 0.09 23.00
2019-12-31 0.11 0.14 0.09 23.00
SEHK:1913 Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.08
2017-12-31 0.09
2017-07-31 0.10
2017-04-30 0.10
2017-01-31 0.11
2016-10-31 0.12
2016-07-31 0.11
2016-04-30 0.13
2016-01-31 0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Prada is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Prada's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Prada has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Prada performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Prada's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Prada's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Prada's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Prada's 1-year earnings growth is negative, it can't be compared to the HK Luxury industry average.
Earnings and Revenue History
Prada's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Prada Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1913 Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,142.15 205.44 1,813.43 125.18
2017-12-31 2,990.29 237.51 1,743.42 127.13
2017-07-31 3,098.53 252.15 1,744.81 126.55
2017-04-30 3,141.30 265.24 1,739.62 125.01
2017-01-31 3,184.07 278.33 1,734.42 123.46
2016-10-31 3,334.35 305.94 1,802.69 131.91
2016-07-31 3,277.51 284.22 1,811.62 128.67
2016-04-30 3,496.67 343.10 1,872.88 136.40
2016-01-31 3,547.77 330.89 1,930.44 134.27
2015-10-31 3,582.22 366.49 1,890.31 132.35
2015-07-31 3,624.81 394.48 1,865.44 132.21
2015-04-30 3,602.14 404.14 1,806.11 133.76
2015-01-31 3,551.70 450.73 1,716.85 132.58
2014-10-31 3,563.27 506.23 1,685.91 131.90
2014-07-31 3,610.60 564.39 1,651.43 133.09
2014-04-30 3,582.79 594.96 1,617.91 130.21
2014-01-31 3,587.35 627.79 1,579.62 129.81
2013-10-31 3,534.00 658.01 1,519.80 126.72
2013-07-31 3,477.91 647.51 1,463.18 121.55
2013-04-30 3,392.78 642.12 1,421.58 114.14
2013-01-31 3,297.22 625.68 1,375.53 111.37
2012-10-31 3,164.55 567.32 1,318.84 108.90
2012-07-31 2,968.70 538.81 1,251.01 107.89
2012-04-30 2,778.05 495.97 1,162.60 107.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Prada has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Prada used its assets less efficiently than the HK Luxury industry average last year based on Return on Assets.
  • Prada's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Prada's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Prada has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Prada's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Prada's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Prada is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Prada's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Prada's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Prada Company Filings, last reported 3 months ago.

SEHK:1913 Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,897.07 913.33 612.79
2017-12-31 2,866.17 996.35 901.05
2017-07-31 2,798.94 893.16 677.05
2017-04-30 2,798.94 893.16 677.05
2017-01-31 3,104.53 703.77 726.87
2016-10-31 3,104.53 703.77 726.87
2016-07-31 2,915.05 927.15 681.00
2016-04-30 2,915.05 927.15 681.00
2016-01-31 3,097.38 796.10 685.41
2015-10-31 3,015.17 725.77 530.69
2015-07-31 2,978.38 810.43 552.87
2015-04-30 3,101.14 464.55 594.44
2015-01-31 3,018.15 520.93 713.26
2014-10-31 2,814.87 433.10 528.09
2014-07-31 2,682.40 511.97 515.82
2014-04-30 2,792.66 339.33 694.35
2014-01-31 2,701.54 274.53 574.15
2013-10-31 2,522.49 288.26 596.34
2013-07-31 2,401.30 245.44 442.97
2013-04-30 2,482.53 251.44 612.16
2013-01-31 2,330.49 260.51 572.96
2012-10-31 2,134.10 303.79 513.87
2012-07-31 2,027.34 306.81 393.99
2012-04-30 1,958.75 354.68 475.86
  • Prada's level of debt (31.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (10.6% vs 31.5% today).
  • Debt is well covered by operating cash flow (40%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 92.4x coverage).
X
Financial health checks
We assess Prada's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Prada has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.38%
Current annual income from Prada dividends. Estimated to be 3.67% next year.
If you bought HK$2,000 of Prada shares you are expected to receive HK$48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Prada's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.97%).
  • Prada's dividend is below the markets top 25% of dividend payers in Hong Kong (5.39%).
Upcoming dividend payment

Purchase Prada before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1913 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
Hong Kong Luxury Industry Average Dividend Yield Market Cap Weighted Average of 56 Stocks 2.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1913 Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.14 1.00
2021-12-31 0.10 15.00
2020-12-31 0.09 20.00
2019-12-31 0.08 21.00
SEHK:1913 Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-26 0.060 2.321
2018-03-23 0.075 2.158
2017-04-25 0.120 3.755
2017-04-12 0.120 2.975
2016-05-24 0.110 3.475
2015-05-26 0.110 3.293
2014-04-15 0.110 2.128
2013-04-18 0.090 1.357
2012-04-19 0.050 0.827
2012-03-29 0.050 1.008
2011-11-29 0.000 0.000
2011-10-19 0.000 0.000
2011-09-19 0.000 0.000
2011-06-24 0.058 1.514

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prada has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Prada only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Prada's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Prada's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Prada afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Prada has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Prada's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Patrizio Bertelli
COMPENSATION €12,655,000
AGE 72
TENURE AS CEO 6.8 years
CEO Bio

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 from November 20, 2003 to May 22, 2012 of Prada SpA. Mr. Bertelli holds Degree in Business Economics from the University of Florence in October 2000.

CEO Compensation
  • Patrizio's compensation has been consistent with company performance over the past year.
  • Patrizio's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Prada management team in years:

6.3
Average Tenure
55
Average Age
  • The average tenure for the Prada management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Carlo Mazzi

TITLE
Chairman
COMPENSATION
€2M
AGE
72

Patrizio Bertelli

TITLE
CEO & Executive Director
COMPENSATION
€13M
AGE
72
TENURE
6.8 yrs

Miuccia Prada Bianchi

TITLE
CEO, President & Executive Director
COMPENSATION
€13M
AGE
70
TENURE
5.2 yrs

Alessandra Cozzani

TITLE
CFO, Investor Relations Director & Executive Director
COMPENSATION
€537K
AGE
55
TENURE
3.2 yrs

Lorenzo Bertelli

TITLE
Head of Group Marketing & Communication
AGE
30

Stefano Rastrelli

TITLE
Group Human Resources Director
AGE
55
TENURE
6.3 yrs

Patrizia Albano

TITLE
Group Corporate Affairs Director & Joint Company Secretary
AGE
65

Ying-Kwai Yuen

TITLE
Joint Company Secretary
AGE
52
TENURE
7.9 yrs

Anthony Romano

TITLE
Church Group Chief Executive Officer
AGE
51
TENURE
2.3 yrs

Armando Tolomelli

TITLE
Asia Pacific Regional Director
AGE
52
TENURE
13.8 yrs
Board of Directors Tenure

Average tenure and age of the Prada board of directors in years:

7.9
Average Tenure
70.5
Average Age
  • The tenure for the Prada board of directors is about average.
Board of Directors

Patrizio Bertelli

TITLE
CEO & Executive Director
COMPENSATION
€13M
AGE
72
TENURE
15.4 yrs

Miuccia Prada Bianchi

TITLE
CEO, President & Executive Director
COMPENSATION
€13M
AGE
70
TENURE
15.4 yrs

Alessandra Cozzani

TITLE
CFO, Investor Relations Director & Executive Director
COMPENSATION
€537K
AGE
55
TENURE
5.3 yrs

Gian Franco Mattei

TITLE
Independent Non Executive Director
COMPENSATION
€150K
AGE
72
TENURE
9.9 yrs

Carlo Mazzi

TITLE
Chairman
COMPENSATION
€2M
AGE
72
TENURE
5.2 yrs

Antonino Parisi

TITLE
Chairman of Board of Statutory Auditors

David Terracina

TITLE
Standing Member of Board of Statutory Auditors
TENURE
6.9 yrs

Maurizio Cereda

TITLE
Independent Non-Executive Director
COMPENSATION
€52K
AGE
54
TENURE
2.9 yrs

JP Liu

TITLE
Independent Non-Executive Director
COMPENSATION
€86K
AGE
62
TENURE
7.9 yrs

Giancarlo Forestieri

TITLE
Independent Non-Executive Director
COMPENSATION
€81K
AGE
71
TENURE
11.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
14. Feb 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 11. Feb 19 11. Feb 19 4,585 HK$28.04 HK$128,561
05. Feb 19 Buy OppenheimerFunds, Inc. Company 31. Jan 19 31. Jan 19 1,447,400 HK$25.87 HK$37,438,737
23. Jan 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 18. Jan 19 18. Jan 19 -2,397,700 HK$24.41 HK$-58,524,503
29. Oct 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 24. Oct 18 24. Oct 18 9,101,800 HK$27.29 HK$248,368,076
25. Jul 18 Sell OppenheimerFunds, Inc. Company 23. Jul 18 23. Jul 18 -206,300 HK$33.91 HK$-6,994,622
04. May 18 Buy OppenheimerFunds, Inc. Company 30. Apr 18 30. Apr 18 3,018,000 HK$39.85 HK$120,270,613
X
Management checks
We assess Prada's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Prada has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Prada S.p.A. (HKG:1913): Is It A Good Long Term Opportunity?

The latest earnings update Prada S.p.A. … (HKG:1913) released in December 2018a … suggested

Simply Wall St -

Should Prada S.p.A. (HKG:1913) Be Part Of Your Dividend Portfolio?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Let's dig deeper into whether Prada should have a place in your portfolio. … Check out our latest analysis for Prada

Simply Wall St -

A Closer Look At Prada S.p.A's (HKG:1913) Uninspiring ROE

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.072 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Prada S.p.A (HKG:1913) Undervalued After Accounting For Its Future Growth?

Looking at Prada S.p.A’s (HKG:1913) fundamentals some investors are wondering if its last closing price of HK$23.45 represents a good value for money for this high growth stock. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … According to the analysts covering the company, the following few years should bring about good growth prospects for Prada

Simply Wall St -

Introducing Prada, The Stock That Slid 57% In The Last Five Years

Zooming in on an example, the Prada S.p.A (HKG:1913) share price dropped 57% in the last half decade. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During the five years over which the share price declined, Prada's earnings per share (EPS) dropped by 18% each year.

Simply Wall St -

What We Think Of Prada S.p.A’s (HKG:1913) Investment Potential

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should You Think About Buying Prada S.p.A (HKG:1913) Now?

saw a decent share price growth in the teens level on the SEHK over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Prada’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Have You Considered This Before Investing In Prada S.p.A (HKG:1913)?

Two important questions to ask before you buy Prada S.p.A (HKG:1913) is, how it makes money and how it spends its cash. … I will take you through Prada’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash Prada has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

How Many Prada S.p.A (HKG:1913) Shares Do Institutions Own?

The big shareholder groups in Prada S.p.A (HKG:1913) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … institutions own shares in the company.

Simply Wall St -

What You Must Know About Prada SpA's (HKG:1913) Financial Health

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Prada SpA (HKG:1913), with a market capitalization of HK$71b, rarely draw their attention from the investing community. … Let’s take a look at 1913’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

Company Info

Description

Prada S.p.A., together with its subsidiaries, designs, produces, sells, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and Africa. The company offers its products under the Prada, Miu Miu, Church's, Car Shoe, and Pasticceria Marchesi brands. It also provides eyewear and fragrances under licensing agreements. As of December 31, 2018, it had 634 directly operated stores in approximately 70 countries worldwide. The company also sells its products through a network of luxury department stores, independent retailers, franchise stores, and online retailers. In addition, it is involved in the food and beverage, and real estate businesses; and operation of duty-free stores. The company was founded in 1913 and is headquartered in Milan, Italy. Prada S.p.A. is a subsidiary of Prada Holding S.p.A.

Details
Name: Prada S.p.A.
1913
Exchange: SEHK
Founded: 1913
HK$56,550,010,400
2,558,824,000
Website: http://www.pradagroup.com
Address: Prada S.p.A.
Via Antonio Fogazzaro, 28,
Milan,
Milan, 20135,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1913 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 24. Jun 2011
OTCPK PRDS.F Ordinary Shares Pink Sheets LLC US USD 24. Jun 2011
DB PRP Ordinary Shares Deutsche Boerse AG DE EUR 24. Jun 2011
SWX PRP Ordinary Shares SIX Swiss Exchange CH CHF 24. Jun 2011
OTCPK PRDS.Y ADR Pink Sheets LLC US USD 10. Aug 2011
Number of employees
Current staff
Staff numbers
13,556
Prada employees.
Industry
Apparel, Accessories and Luxury Goods
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 13:45
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/03/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.