Samsonite International SA (SMSEY) AI Stock Analysis

23 Followers

Top Page

Samsonite International SA

(OTC:SMSEY)

78Outperform

Samsonite International SA is in a strong financial position with notable improvements in revenue and profitability. The company's stable balance sheet and robust cash flow generation are key strengths. While some challenges in specific markets were highlighted in the earnings call, the overall outlook remains positive, supported by attractive valuation metrics and solid technical indicators.

Samsonite International SA (SMSEY) vs. S&P 500 (SPY)

Market Cap

$2.44B

Dividend Yield4.35%

Average Volume (3M)3.53K

Price to Earnings (P/E)7.4

Beta (1Y)0.14

Revenue Growth1.19%

EPS Growth-19.26%

CountryUS

Employees12,100

SectorConsumer Cyclical

Sector Strength64

IndustryApparel - Footwear & Accessories

Share Statistics

EPS (TTM)1.18

Shares Outstanding292,452,700

10 Day Avg. Volume10,594

30 Day Avg. Volume3,531

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.59

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Samsonite International SA Business Overview & Revenue Model

Company DescriptionSamsonite International SA is a leading global travel luggage company, specializing in the design, manufacturing, and distribution of luggage, business, and lifestyle bags. The company operates across various segments including travel, business, and casual bags, accessories, and travel gear. With a strong brand portfolio, Samsonite serves customers worldwide, offering products known for their durability, innovation, and style.

How the Company Makes MoneySamsonite International SA generates revenue primarily through the sale of its luggage and travel products. The company's revenue streams are mainly derived from wholesale distribution to retailers and direct-to-consumer sales through owned retail stores and e-commerce platforms. Key factors contributing to Samsonite's earnings include its extensive global distribution network, a diverse product range catering to different consumer needs, and strong brand recognition. Additionally, strategic partnerships with retailers and continuous product innovation play significant roles in driving its financial success.

Samsonite International SA Financial Statement Overview

Summary

Samsonite International SA has rebounded strongly from past challenges, showcasing impressive growth in revenue and profitability. The income statement highlights significant sales recovery and operational efficiency. The balance sheet shows a stable financial position with improving leverage, and cash flow metrics indicate robust cash generation.

Income Statement

Very Positive

Samsonite International SA has shown a strong performance in the income statement with a gross profit margin of 59.3% and a net profit margin of 11.3% for the latest year. The company experienced a significant revenue growth rate of 27.9%, indicating strong sales recovery. The EBIT margin improved to 20.2%, and EBITDA margins are healthy at 24.9%, showcasing operational efficiency. The company has successfully rebounded from the losses seen in 2020.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with an improving debt-to-equity ratio of 1.58, down from previous years. The return on equity (ROE) is strong at 28.7%, indicating effective use of equity to generate profits. However, the equity ratio stands at 28.4%, which suggests moderate leverage but shows a positive trend with increasing stockholder equity.

Cash Flow

Positive

The cash flow analysis demonstrates a robust free cash flow growth rate of 97.3%, highlighting effective cash generation. The operating cash flow to net income ratio is 1.28, indicating solid cash flow relative to net income. The free cash flow to net income ratio is 1.02, suggesting efficient conversion of net income to free cash flow. The company has improved its ability to generate cash after a challenging period in 2020.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
3.67B	3.68B	2.88B	2.02B	1.54B	3.64B
	Gross Profit
2.20B	2.18B	1.61B	1.10B	706.30M	2.02B
	EBIT
746.30M	743.70M	492.10M	132.70M	-1.27B	283.00M
	EBITDA
864.90M	918.10M	652.30M	295.10M	-997.00M	596.10M
	Net Income Common Stockholders
428.80M	417.00M	312.70M	14.30M	-1.28B	132.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
716.60M	730.70M	635.90M	1.32B	1.50B	462.60M
	Total Assets
5.11B	5.11B	4.72B	4.85B	5.16B	5.54B
	Total Debt
2.30B	2.30B	2.39B	3.22B	3.72B	2.41B
	Net Debt
1.58B	1.58B	1.75B	1.90B	2.23B	1.94B
	Total Liabilities
3.59B	3.59B	3.64B	4.13B	4.49B	3.54B
	Stockholders Equity
1.45B	1.45B	1.03B	689.70M	634.10M	1.95B
Cash Flow		Free Cash Flow
447.00M	424.10M	214.90M	361.20M	-140.30M	501.70M
	Operating Cash Flow
570.50M	534.20M	277.70M	387.10M	-114.20M	576.20M
	Investing Cash Flow
-125.60M	-110.10M	-62.80M	9.40M	-26.10M	-73.10M
	Financing Cash Flow
-216.40M	-347.80M	-881.10M	-551.20M	1.16B	-465.10M

Samsonite International SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price8.79

Price Trends

50DMA

12.85

Negative

100DMA

13.28

Negative

200DMA

13.04

Negative

Market Momentum

MACD

-0.52

Positive

RSI

25.38

Positive

STOCH

-0.17

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMSEY, the sentiment is Negative. The current price of 8.79 is below the 20-day moving average (MA) of 11.18, below the 50-day MA of 12.85, and below the 200-day MA of 13.04, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 25.38 is Positive, neither overbought nor oversold. The STOCH value of -0.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMSEY.

Samsonite International SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LULU	81 Outperform	$32.27B	17.72	42.42%	―	10.07%	20.40%
SMSEY	78 Outperform	$2.44B	7.39	23.28%	4.35%	1.19%	-19.26%
KTB	67 Neutral	$3.16B	13.10	63.68%	3.57%	0.07%	7.19%
COLM	63 Neutral	$3.63B	17.20	12.01%	1.83%	-3.35%	-6.09%
Sector *	59 Neutral	$11.48B	10.33	-0.84%	4.02%	1.25%	-16.06%
HBI	45 Neutral	$1.57B	―	-43.06%	―	-29.44%	-1343.00%
VFC	44 Neutral	$4.46B	―	-16.13%	3.24%	-8.42%	57.91%

* Consumer Cyclical Sector Average

Performance Comparison

SMSEY

Samsonite International SA

8.83

-9.26

-51.19%

COLM

Columbia Sportswear

65.62

-7.52

-10.28%

HBI

Hanesbrands

4.40

-0.29

-6.18%

LULU

Lululemon Athletica

261.03

-73.73

-22.02%

VFC

11.11

-0.79

-6.64%

KTB

Kontoor Brands

57.34

4.84

9.22%

Samsonite International SA Earnings Call Summary

Earnings Call Date: Mar 13, 2025 | % Change Since: -29.96% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of strong financial metrics, particularly in terms of gross margin and cash flow, alongside challenges in specific markets such as India and broader concerns about consumer sentiment affecting future performance. While there are signs of improvement in some regions and optimism about sustainability and e-commerce growth, uncertainties remain, particularly in North America. Overall, the sentiment is cautiously optimistic but tempered by market challenges.

Highlights

Strong Gross Margin and EBITDA

Achieved a gross margin of 60.2% in Q4, up 30 basis points from the prior year, and a record EBITDA margin of 20.7%, up 160 basis points from Q4 2023.

Cash Flow and Debt Management

Generated $311 million of free cash flow for the year, up $26 million from the prior year, and reduced net debt to $1.1 billion despite returning $308 million to shareholders.

Sequential Sales Improvement in Most Regions

North America went from down 8% in Q3 to a growth of 3.9% in Q4. Europe delivered 5.6% growth in Q4, and Latin America showed consistent growth with a 14% increase in Q4.

Sustainability Achievements

40% of products now incorporate some recycled materials, up from 34% last year, highlighting progress in sustainability initiatives.

E-commerce and DTC Channel Growth

E-commerce sales increased by nearly 6% for the year, with direct-to-consumer sales rising by 2.7%.

Lowlights

Challenges in the Indian Market

India faced significant challenges, with sales down 27% in Q4, although there are signs of improvement as 2025 begins.

Mixed Performance in Asia

Asia showed improvement but remained negative with a 6% decline in Q4. Specific challenges included a 6% decline in Korea and an 18% decline in Hong Kong.

Tumi Performance in North America

Tumi saw a decline in North America due to soft consumer demand and reduced full-price traffic in retail stores.

Q1 2025 Outlook

The company anticipates Q1 2025 will see a decline in sales, down low to mid-single digits on a constant currency basis, due to macroeconomic uncertainties affecting consumer sentiment.

Company Guidance

In the Samsonite Group 2024 Annual Results Conference Call, the company reported a Q4 net sales of $942 million, marking a 1% increase in constant currency from the previous year and a 21% increase since 2019. The gross margin improved to 60.2%, up 30 basis points year-over-year, owing to disciplined promotional strategies and a higher share of sales from the direct-to-consumer (DTC) channel. Adjusted EBITDA reached $195 million, with a margin of 20.7%, a 160 basis point improvement, supported by reduced advertising spend and improved gross margins. The company generated $135 million in free cash flow for the quarter, a $3 million increase from Q4 2023. Regional sales showed varying trends, with North America growing by 3.9%, Europe by 5.6%, and Latin America by 14%, while Asia continued to recover, albeit with a negative trend of -6% in Q4, largely impacted by India and China. For the full year, net sales were flat compared to 2023, reflecting a robust performance amidst global challenges, with a gross margin of 60% and adjusted EBITDA of $683 million. Samsonite and Tumi brands recorded Q4 growth of 4.6% and 4.4%, respectively. The company maintained a strong liquidity position, with net debt at $1.1 billion and a net leverage ratio of 1.58x, despite returning $308 million to shareholders through dividends and share repurchases.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.