Salvatore Ferragamo (SFRGY) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: 1.11%
• Average Volume (3M): 694.00
• Price to Earnings (P/E): 113.0
• Beta (1Y): 1.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3,329
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Luxury Goods
• EPS (TTM): -0.22
• Shares Outstanding: 337,580,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 694
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.12
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Salvatore Ferragamo's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability. The stock shows positive technical indicators but is offset by its high valuation, suggesting it may be overpriced. The financial performance challenges and risks are significant factors, with secondary attention to technical momentum and high P/E ratio concerns.

Salvatore Ferragamo Business Overview & Revenue Model

Company Description

Salvatore Ferragamo (SFRGY) is a renowned Italian luxury goods company specializing in the design, production, and sale of high-end footwear, leather goods, apparel, silk products, and accessories. Established in 1927, the company is revered for its craftsmanship, innovation, and commitment to quality, making it a prestigious name in the fashion industry. Salvatore Ferragamo operates through a network of retail stores, wholesale channels, and an online presence, catering to a global clientele seeking premium fashion products.

How the Company Makes Money

Salvatore Ferragamo generates revenue primarily through the sale of luxury goods, including footwear, leather goods, ready-to-wear clothing, and accessories. The company operates a combination of directly operated stores and a wholesale distribution network to reach its customers. Key revenue streams include retail sales from company-owned stores and e-commerce platforms, as well as wholesale sales to third-party retailers and distributors. Additionally, the brand's strong heritage and reputation in the fashion industry enable it to maintain premium pricing for its products, contributing to its overall profitability. Partnerships with high-end department stores and presence in international markets further enhance its revenue potential.

Salvatore Ferragamo Financial Statement Overview

Summary

Salvatore Ferragamo faces challenges with declining revenue and profitability, as evidenced by a negative revenue growth rate and low net profit margins. The significant decline in free cash flow and revenue growth presents risks. While the company maintains a solid gross profit margin and operational efficiency, the balance sheet reflects moderate leverage and a stable equity position, though the low return on equity indicates underperformance in generating shareholder value.

Income Statement

The company exhibits a moderate gross profit margin of 72.6% and a low net profit margin of 2.3% for the latest year. Revenue declined by 7.6% from the previous year, indicating a negative growth trajectory. However, the EBITDA margin stands at 21.5%, showcasing operational efficiency despite the revenue decline.

Balance Sheet

The debt-to-equity ratio is 1.1, indicating moderate leverage. The equity ratio is 39.8%, suggesting a stable capital structure. However, the return on equity is low at 3.6%, reflecting limited profitability on shareholder equity.

Cash Flow

Free cash flow decreased significantly by 78.3% compared to the previous year, indicating potential cash flow challenges. The operating cash flow to net income ratio of 4.5 suggests strong cash earnings, but the decrease in free cash flow raises concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.08B	1.16B	1.25B	1.14B	915.83M	1.38B
	Gross Profit
783.27M	839.43M	901.12M	780.94M	565.54M	893.49M
	EBIT
66.01M	72.02M	127.94M	143.48M	-34.70M	149.70M
	EBITDA
143.00M	248.73M	288.23M	301.15M	158.38M	322.43M
	Net Income Common Stockholders
9.31M	26.06M	69.61M	78.65M	-71.70M	87.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
208.67M	304.26M	401.35M	511.80M	328.16M	222.33M
	Total Assets
1.19B	1.81B	1.72B	1.85B	1.71B	1.84B
	Total Debt
36.83M	791.17M	604.59M	736.36M	753.91M	724.39M
	Net Debt
-170.88M	522.18M	213.23M	224.57M	426.03M	502.06M
	Total Liabilities
406.79M	1.09B	944.88M	1.06B	1.00B	1.06B
	Stockholders Equity
753.69M	721.17M	751.81M	764.31M	693.58M	763.65M
Cash Flow		Free Cash Flow
73.81M	45.76M	211.21M	331.64M	58.52M	186.45M
	Operating Cash Flow
136.90M	117.50M	267.07M	376.13M	88.33M	249.99M
	Investing Cash Flow
-80.40M	-96.97M	-65.86M	-30.89M	-37.39M	-63.38M
	Financing Cash Flow
-102.37M	-150.09M	-323.28M	-160.29M	47.26M	-169.33M

Salvatore Ferragamo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFRGY, the sentiment is Negative. The current price of 3.12 is below the 20-day moving average (MA) of 3.57, below the 50-day MA of 3.78, and below the 200-day MA of 3.79, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 1.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFRGY.

Salvatore Ferragamo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	79 Outperform	$14.14B	20.87	27.57%	1.67%	5.23%	24.63%
PVH	72 Outperform	$4.25B	7.24	11.67%	0.23%	-6.13%	-2.63%
MOV	65 Neutral	$232.92M	14.14	4.74%	9.43%	-4.18%	-58.51%
SFRGY	61 Neutral	$1.03B	112.99	-10.25%	1.11%	―	―
Sector *	59 Neutral	$12.18B	11.09	-1.08%	3.77%	1.26%	-19.82%
CPRI	48 Neutral	$1.77B	―	-67.22%	―	-12.34%	-574.65%