Prada S.p.A. Fundamental Analysis
Prada S.p.A. (1913.HK) shows moderate financial fundamentals with a PE ratio of 12.52, profit margin of 14.90%, and ROE of 19.21%. The company generates $5.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 1913.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1913.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1913.HK trades at attractive valuation levels.
Growth Score
Moderate1913.HK shows steady but slowing expansion.
Financial Health Score
Moderate1913.HK shows balanced financial health with some risks.
Profitability Score
Moderate1913.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1913.HK Expensive or Cheap?
P/E Ratio
1913.HK trades at 12.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1913.HK's PEG of 1.11 indicates fair valuation.
Price to Book
The market values Prada S.p.A. at 2.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.44 times EBITDA. This is generally considered low.
How Well Does 1913.HK Make Money?
Net Profit Margin
For every $100 in sales, Prada S.p.A. keeps $14.90 as profit after all expenses.
Operating Margin
Core operations generate 22.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.21 in profit for every $100 of shareholder equity.
ROA
Prada S.p.A. generates $7.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Prada S.p.A. generates strong operating cash flow of $1.69B, reflecting robust business health.
Free Cash Flow
Prada S.p.A. generates strong free cash flow of $1.07B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.42 in free cash annually.
FCF Yield
1913.HK converts 10.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How 1913.HK Stacks Against Its Sector Peers
| Metric | 1913.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.52 | 24.99 | Better (Cheaper) |
| ROE | 19.21% | 1079.00% | Weak |
| Net Margin | 14.90% | -3138.00% (disorted) | Strong |
| Debt/Equity | 1.04 | 0.45 | Weak (High Leverage) |
| Current Ratio | 1.38 | 2.50 | Neutral |
| ROA | 7.74% | 225.00% | Weak |
1913.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Prada S.p.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary