BIT:SFER

Stock Analysis Report

Executive Summary

Salvatore Ferragamo S.p.A., through its subsidiaries, creates, produces, and sells luxury goods for men and women worldwide.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Salvatore Ferragamo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFER's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.5%

SFER

-11.1%

IT Luxury

-8.7%

IT Market


1 Year Return

-24.7%

SFER

-21.3%

IT Luxury

5.1%

IT Market

Return vs Industry: SFER underperformed the Italian Luxury industry which returned -21.3% over the past year.

Return vs Market: SFER underperformed the Italian Market which returned 5.1% over the past year.


Shareholder returns

SFERIndustryMarket
7 Day-10.5%-11.1%-8.7%
30 Day-16.7%-13.8%-5.2%
90 Day-21.0%-17.7%-3.4%
1 Year-23.4%-24.7%-20.1%-21.3%9.7%5.1%
3 Year-46.1%-48.6%-37.6%-43.5%23.3%10.9%
5 Year-44.4%-49.0%-47.0%-55.4%5.9%-30.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFER (€14.33) is trading below our estimate of fair value (€19.93)

Significantly Below Fair Value: SFER is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SFER is poor value based on its PE Ratio (28.7x) compared to the Luxury industry average (13.6x).

PE vs Market: SFER is poor value based on its PE Ratio (28.7x) compared to the Italian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: SFER is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: SFER is overvalued based on its PB Ratio (3.3x) compared to the IT Luxury industry average (1.2x).


Next Steps

Future Growth

How is Salvatore Ferragamo forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFER's forecast earnings growth (10.5% per year) is above the savings rate (1.2%).

Earnings vs Market: SFER's earnings (10.5% per year) are forecast to grow faster than the Italian market (10.1% per year).

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

Revenue vs Market: SFER's revenue (4.2% per year) is forecast to grow faster than the Italian market (4.2% per year).

High Growth Revenue: SFER's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFER's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Salvatore Ferragamo performed over the past 5 years?

-12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFER has high quality earnings.

Growing Profit Margin: SFER's current net profit margins (6.2%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: SFER's earnings have declined by -12.7% per year over the past 5 years.

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

Earnings vs Industry: SFER had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the Luxury industry average (-11.5%).


Return on Equity

High ROE: SFER's Return on Equity (11.4%) is considered low.


Next Steps

Financial Health

How is Salvatore Ferragamo's financial position?


Financial Position Analysis

Short Term Liabilities: SFER's short term assets (€768.6M) exceed its short term liabilities (€431.3M).

Long Term Liabilities: SFER's short term assets (€768.6M) exceed its long term liabilities (€619.1M).


Debt to Equity History and Analysis

Debt Level: SFER's debt to equity ratio (6.3%) is considered satisfactory.

Reducing Debt: SFER's debt to equity ratio has reduced from 28% to 6.3% over the past 5 years.

Debt Coverage: SFER's debt is well covered by operating cash flow (500.2%).

Interest Coverage: SFER's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: SFER's debt is covered by short term assets (assets are 16x debt).


Next Steps

Dividend

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

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFER's dividend (2.37%) is higher than the bottom 25% of dividend payers in the Italian market (2.09%).

High Dividend: SFER's dividend (2.37%) is low compared to the top 25% of dividend payers in the Italian market (4.69%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SFER has been paying a dividend for less than 10 years.

Growing Dividend: SFER's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.2%), SFER's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFER's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Micaela Le Divelec Lemmi (51yo)

1.6yrs

Tenure

€978,000

Compensation

Ms. Micaela Le Divelec Lemmi has been the Chief Executive Officer and an Executive Director at Salvatore Ferragamo SpA since July 31, 2018 and was its Chief Corporate Officer and Strategic Manager April 20 ...


CEO Compensation Analysis

Compensation vs Market: Micaela's total compensation ($USD1.07M) is below average for companies of similar size in the Italian market ($USD2.24M).

Compensation vs Earnings: Insufficient data to compare Micaela's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ferruccio Ferragamo
Executive Chairman13.5yrs€1.14mno data
Micaela Le Divelec Lemmi
CEO & Executive Director1.6yrs€978.00kno data
Alessandro Corsi
CFO & Strategic Manager1.1yrsno datano data
Paola Pecciarini
Group Investor Relations0yrsno datano data
Riccardo Vannetti
Chief Marketing Officer1.7yrsno datano data

1.6yrs

Average Tenure

Experienced Management: SFER's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ferruccio Ferragamo
Executive Chairman13.5yrs€1.14mno data
Micaela Le Divelec Lemmi
CEO & Executive Director1.6yrs€978.00kno data
Francesco Caretti
Non-Executive Director0yrs€285.00kno data
Marzio Alberto Saà
Lead Independent Director0yrs€73.00kno data
Giovanna Ferragamo
Non Executive Director0yrs€200.00kno data
Leonardo Ferragamo
Non-Executive Director0yrs€40.00kno data
Umberto Tombari
Independent Non-Executive Director8.7yrs€73.00kno data
Diego Paternò di San Giuliano
Non-Executive Director0yrs€121.00kno data
Giacomo Ferragamo
Vice Chairman & Strategic Manager1.8yrs€697.00kno data
Andrea Balelli
Chairman of Statutory Board2.8yrsno datano data

2.8yrs

Average Tenure

Experienced Board: SFER's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Salvatore Ferragamo S.p.A.
  • Ticker: SFER
  • Exchange: BIT
  • Founded: 1927
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: €2.410b
  • Shares outstanding: 168.64m
  • Website: https://www.ferragamo.com

Number of Employees


Location

  • Salvatore Ferragamo S.p.A.
  • Via Tornabuoni, 2
  • Florence
  • Florence
  • 50123
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFERBIT (Borsa Italiana)YesOrdinary SharesITEURJun 2011
0P52LSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2011
SFRG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2011
SFERMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2011
S9LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2011
SFERWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 2011
SFER NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 2011
SFRG.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 2013

Biography

Salvatore Ferragamo S.p.A., through its subsidiaries, creates, produces, and sells luxury goods for men and women worldwide. The company offers men’s and women’s footwear; leather goods, such as handbags, suitcases, belts, wallets, and other men’s and women’s leather accessories; and knitwear, clothes for formal occasions, outerwear, formal wear, sportswear, and leisure wear. It also provides silk accessories, including ties, foulards, scarves, etc.; home accessories comprising plaid throws, cushions, and beach towels; costume jewellery; and other accessories consisting of shawls and gloves. In addition, the company develops and distributes perfumes under the Salvatore Ferragamo and Emanuel Ungaro brands, as well as fragrances and body care products; and jewellery. Further, it offers men’s and ladies sunglasses and prescription glasses; and watches. As of June 30, 2019, the company operated a network of 661 points of sales, including 397 directly operated stores and 264 third party operated stores in the wholesale and travel retail channel, as well as department stores and high-level multi-brand specialty stores. The company was formerly known as Salvatore Ferragamo Italia S.p.A. and changed its name to Salvatore Ferragamo S.p.A. in April 2011. Salvatore Ferragamo S.p.A. was founded in 1927 and is based in Florence, Italy. Salvatore Ferragamo S.p.A. is a subsidiary of Ferragamo Finanziaria S.p.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 21:38
End of Day Share Price2020/02/28 00:00
Earnings2019/09/30
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.