Brunello Cucinelli (BIT:BC) - Share price, News & Analysis

Q: What is the Fair Price of BC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BC (€55.55) is trading above our estimate of [[fair value]] (€16.4)

BC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

BC Stock Overview

Brunello Cucinelli S.p.A., together with its subsidiaries, engages in the production and sale of clothing, accessories, and lifestyle products in Italy, Europe, North America, Japan, and China.

Rewards

Earnings are forecast to grow 15.47% per year

Became profitable this year

Risk Analysis

No risks detected for BC from our risk checks.

Brunello Cucinelli Competitors

Salvatore Ferragamo

BIT:SFER

€2.9b

Moncler

BIT:MONC

€13.1b

Safilo Group

BIT:SFL

€653.4m

OVS

BIT:OVS

€463.6m

Price History & Performance

Summary of all time highs, changes and price drops for Brunello Cucinelli
Historical stock prices
Current Share Price	€55.55
52 Week High	€63.90
52 Week Low	€39.14
Beta	1.1
1 Month Change	22.03%
3 Month Change	21.55%
1 Year Change	1.00%
3 Year Change	100.98%
5 Year Change	128.23%
Change since IPO	378.88%

Recent News & Updates

Aug 05

What Does Brunello Cucinelli S.p.A.'s (BIT:BC) Share Price Indicate?

Brunello Cucinelli S.p.A. ( BIT:BC ), might not be a large cap stock, but it saw a significant share price rise of over...

Jun 24

Brunello Cucinelli (BIT:BC) Seems To Use Debt Rather Sparingly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 07

Returns On Capital At Brunello Cucinelli (BIT:BC) Paint A Concerning Picture

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

Shareholder Returns

	BC	IT Luxury	IT Market
7D	-3.1%	2.6%	0.9%
1Y	1.0%	-15.1%	-16.1%

Return vs Industry: BC exceeded the Italian Luxury industry which returned -15.1% over the past year.

Return vs Market: BC exceeded the Italian Market which returned -16.1% over the past year.

Price Volatility

Is BC's price volatile compared to industry and market?
BC volatility
BC Average Weekly Movement	5.3%
Luxury Industry Average Movement	5.9%
Market Average Movement	5.1%
10% most volatile stocks in IT Market	7.8%
10% least volatile stocks in IT Market	3.2%

Stable Share Price: BC is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1978	2,160	Riccardo Stefanelli	https://www.brunellocucinelli.com

Brunello Cucinelli S.p.A., together with its subsidiaries, engages in the production and sale of clothing, accessories, and lifestyle products in Italy, Europe, North America, Japan, and China. The company offers women’s collection, including coats and jackets, dresses, knitwear, t-shirts and tops, shirts, skirts, pants, denim, travel wear, sneakers, high-boots, loafers and flat shoes, sandals, leather goods, jewelry, scarves, other accessories, mini bags and clutches, crossbody bags and backpacks, and handbags and shoppers. It also provides men’s collection, such as coats and jackets, knitwear, blazers and waistcoats, suits, tuxedos, t-shirts and polos, shirts, pants, denims, travel wear, sneakers, lace-ups, loafers, boots, leather goods, bags, scarves, and other accessories; and kids collections.

Brunello Cucinelli Fundamentals Summary

How do Brunello Cucinelli's earnings and revenue compare to its market cap?
BC fundamental statistics
Market Cap	€3.75b
Earnings (TTM)	€53.32m
Revenue (TTM)	€712.18m

70.8x

P/E Ratio

5.3x

P/S Ratio

Is BC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BC income statement (TTM)
Revenue	€712.18m
Cost of Revenue	€350.69m
Gross Profit	€361.49m
Other Expenses	€308.17m
Earnings	€53.32m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 30, 2022

Earnings per share (EPS)	0.78
Gross Margin	50.76%
Net Profit Margin	7.49%
Debt/Equity Ratio	37.6%

How did BC perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

54%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BC. This is calculated by dividing BC's market cap by their current preferred multiple.
What is BC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€3.75b

BC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.1x
Enterprise Value/EBITDA	37x
PEG Ratio	4.6x

Price to Earnings Ratio vs Peers

How does BC's PE Ratio compare to its peers?

BC PE Ratio vs Peers

The above table shows the PE ratio for BC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.6x
SFER Salvatore Ferragamo	28.9x	19.1%	€2.9b
MONC Moncler	24x	7.4%	€13.1b
SFL Safilo Group	12.6x	1.6%	€653.4m
OVS OVS	9.7x	13.0%	€463.6m
BC Brunello Cucinelli	70.8x	15.5%	€3.8b

Price-To-Earnings vs Peers: BC is expensive based on its Price-To-Earnings Ratio (70.8x) compared to the peer average (18.6x).

Price to Earnings Ratio vs Industry

How does BC's PE Ratio compare vs other companies in the European Luxury Industry?

Price-To-Earnings vs Industry: BC is expensive based on its Price-To-Earnings Ratio (70.8x) compared to the Italian Luxury industry average (22.7x)

Price to Earnings Ratio vs Fair Ratio

What is BC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	70.8x
Fair PE Ratio	25.3x

Price-To-Earnings vs Fair Ratio: BC is expensive based on its Price-To-Earnings Ratio (70.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

Share Price vs Fair Value

What is the Fair Price of BC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BC (€55.55) is trading above our estimate of fair value (€16.4)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.

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Future Growth

How is Brunello Cucinelli forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BC's forecast earnings growth (15.5% per year) is above the savings rate (1.7%).

Earnings vs Market: BC's earnings (15.5% per year) are forecast to grow faster than the Italian market (8.6% per year).

High Growth Earnings: BC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BC's revenue (10.5% per year) is forecast to grow faster than the Italian market (-0.1% per year).

High Growth Revenue: BC's revenue (10.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BC's Return on Equity is forecast to be high in 3 years time (20.6%)

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Past Performance

How has Brunello Cucinelli performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-18.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BC has high quality earnings.

Growing Profit Margin: BC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: BC's earnings have declined by 18.6% per year over the past 5 years.

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

Earnings vs Industry: BC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (51.1%).

Return on Equity

High ROE: BC's Return on Equity (17.5%) is considered low.

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Financial Health

How is Brunello Cucinelli's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BC's short term assets (€403.7M) exceed its short term liabilities (€286.7M).

Long Term Liabilities: BC's short term assets (€403.7M) do not cover its long term liabilities (€559.4M).

Debt to Equity History and Analysis

Debt Level: BC's net debt to equity ratio (6.4%) is considered satisfactory.

Reducing Debt: BC's debt to equity ratio has reduced from 44% to 37.6% over the past 5 years.

Debt Coverage: BC's debt is well covered by operating cash flow (171.9%).

Interest Coverage: BC's interest payments on its debt are well covered by EBIT (6.8x coverage).

Balance Sheet

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Dividend

What is Brunello Cucinelli current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.76%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BC's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.66%).

High Dividend: BC's dividend (0.76%) is low compared to the top 25% of dividend payers in the Italian market (5.25%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: BC is not paying a notable dividend for the Italian market.

Cash Payout to Shareholders

Cash Flow Coverage: BC is not paying a notable dividend for the Italian market.

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Management

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

8.3yrs

Average board tenure

CEO

Riccardo Stefanelli (41 yo)

no data

Tenure

€552,800

Compensation

Mr. Riccardo Stefanelli has been an Executive Director of BRUNELLO CUCINELLI S.p.A. since June 2011 and serves its Chief Executive Officer.

CEO Compensation Analysis

Compensation vs Market: Riccardo's total compensation ($USD572.20K) is below average for companies of similar size in the Italian market ($USD2.04M).

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

Board Members

Experienced Board: BC'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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31