BIT:BC

Stock Analysis Report

Executive Summary

Brunello Cucinelli S.p.A., together with its subsidiaries, designs, manufactures, and sells clothing and accessories in Italy, Europe, North America, Greater China, and internationally.


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has Brunello Cucinelli's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

BC

4.3%

IT Luxury

-0.6%

IT Market


1 Year Return

11.4%

BC

18.4%

IT Luxury

19.0%

IT Market

Return vs Industry: BC underperformed the Italian Luxury industry which returned 18.4% over the past year.

Return vs Market: BC underperformed the Italian Market which returned 19% over the past year.


Shareholder returns

BCIndustryMarket
7 Day-0.9%4.3%-0.6%
30 Day15.7%11.1%-0.5%
90 Day17.3%11.2%5.4%
1 Year12.5%11.4%20.0%18.4%24.4%19.0%
3 Year86.4%81.7%37.0%24.3%29.6%10.3%
5 Year85.8%78.6%61.0%38.2%32.3%-13.7%

Price Volatility Vs. Market

How volatile is Brunello Cucinelli's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

45.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BC (€33.32) is trading above our estimate of fair value (€18.69)

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


Price To Earnings Ratio

PE vs Industry: BC is poor value based on its PE Ratio (45.4x) compared to the Luxury industry average (19.9x).

PE vs Market: BC is poor value based on its PE Ratio (45.4x) compared to the Italian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BC is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: BC is overvalued based on its PB Ratio (8.2x) compared to the IT Luxury industry average (1.5x).


Next Steps

Future Growth

How is Brunello Cucinelli forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BC's forecast earnings growth (7.9% per year) is above the savings rate (1.2%).

Earnings vs Market: BC's earnings (7.9% per year) are forecast to grow slower than the Italian market (8.7% per year).

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

Revenue vs Market: BC's revenue (7.6% per year) is forecast to grow faster than the Italian market (3.1% per year).

High Growth Revenue: BC's revenue (7.6% 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 low in 3 years time (16.6%).


Next Steps

Past Performance

How has Brunello Cucinelli performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BC has high quality earnings.

Growing Profit Margin: BC's current net profit margins (8.7%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: BC's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: BC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BC had negative earnings growth (-13.4%) over the past year, making it difficult to compare to the Luxury industry average (-7.1%).


Return on Equity

High ROE: BC's Return on Equity (18.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Brunello Cucinelli's financial position?


Financial Position Analysis

Short Term Liabilities: BC's short term assets (€346.5M) exceed its short term liabilities (€243.2M).

Long Term Liabilities: BC's short term assets (€346.5M) do not cover its long term liabilities (€383.2M).


Debt to Equity History and Analysis

Debt Level: BC's debt to equity ratio (41.1%) is considered high.

Reducing Debt: BC's debt to equity ratio has reduced from 56.4% to 41.1% over the past 5 years.

Debt Coverage: BC's debt is well covered by operating cash flow (71.1%).

Interest Coverage: BC's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet

Inventory Level: BC has a high level of physical assets or inventory.

Debt Coverage by Assets: BC's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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

0.90%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.0%markettop25%4.3%industryaverage1.4%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: BC's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.96%).

High Dividend: BC's dividend (0.9%) is low compared to the top 25% of dividend payers in the Italian market (4.34%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

6.6yrs

Average board tenure


CEO

Brunello Cucinelli (66yo)

0yrs

Tenure

€802,800

Compensation

Mr. Brunello Cucinelli is the Owner of Fedone S.r.l. Mr. Cucinelli serves as the Chairman, Chief Executive Officer and Managing Director at BRUNELLO CUCINELLI S.p.A. He serves as a Director at Pitti Immagi ...


CEO Compensation Analysis

Compensation vs Market: Brunello's total compensation ($USD890.22K) is above average for companies of similar size in the Italian market ($USD0.00).

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


Board Age and Tenure

6.6yrs

Average Tenure

53yo

Average Age

Experienced Board: BC's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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.


Management Team

  • Brunello Cucinelli (66yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: €802.80k
  • Moreno Ciarapica (58yo)

    Manager in charge of Corporate Accounting Documents & Executive Director

    • Tenure: 0yrs
    • Compensation: €2.80k
  • Riccardo Stefanelli (38yo)

    Executive Director

    • Tenure: 8.5yrs
    • Compensation: €2.80k
  • Luca Lisandroni (41yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: €2.40k
  • Pietro Arnaboldi

    Investor Relations & Corporate Planning Director

    • Tenure: 0yrs

Board Members

  • Andrea Pontremoli (62yo)

    Lead Independent Director

    • Tenure: 7.6yrs
    • Compensation: €45.30k
  • Matteo Marzotto (53yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: €37.80k
  • Brunello Cucinelli (66yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: €802.80k
  • Moreno Ciarapica (58yo)

    Manager in charge of Corporate Accounting Documents & Executive Director

    • Tenure: 0yrs
    • Compensation: €2.80k
  • Giovanna Manfredi (58yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: €2.40k
  • Riccardo Stefanelli (38yo)

    Executive Director

    • Tenure: 8.5yrs
    • Compensation: €2.80k
  • Candice Koo (42yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: €30.30k
  • Camilla Cucinelli (37yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: €2.80k
  • Luca Lisandroni (41yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: €2.40k
  • Paolo Prandi

    Chairman of the Board of Statutory Auditors

    • Tenure: 2.7yrs

Company Information

Brunello Cucinelli S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brunello Cucinelli S.p.A.
  • Ticker: BC
  • Exchange: BIT
  • Founded: 1978
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: €2.196b
  • Shares outstanding: 68.00m
  • Website: https://www.brunellocucinelli.com

Number of Employees


Location

  • Brunello Cucinelli S.p.A.
  • Viale Parco dell’Industria, 5
  • Solomeo
  • Perugia
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCBIT (Borsa Italiana)YesCommon SharesITEURApr 2012
8BUDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2012
0Q7SLSE (London Stock Exchange)YesCommon SharesGBEURApr 2012
BCUC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2012
BCMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURApr 2012
BCUC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJul 2013

Biography

Brunello Cucinelli S.p.A., together with its subsidiaries, designs, manufactures, and sells clothing and accessories in Italy, Europe, North America, Greater China, and internationally. The company offers  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 21:38
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.