Safilo Group S.p.A.
Safilo Group S.p.A. Fundamental Analysis
Safilo Group S.p.A. (SAFLF) shows weak financial fundamentals with a PE ratio of 18.03, profit margin of 4.99%, and ROE of 12.37%. The company generates $0.9B in annual revenue with weak year-over-year growth of -3.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SAFLF's fundamental strength across five key dimensions:
Efficiency Score
WeakSAFLF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSAFLF shows balanced valuation metrics.
Growth Score
WeakSAFLF faces weak or negative growth trends.
Financial Health Score
ExcellentSAFLF maintains a strong and stable balance sheet.
Profitability Score
WeakSAFLF struggles to sustain strong margins.
Key Financial Metrics
Is SAFLF Expensive or Cheap?
P/E Ratio
SAFLF trades at 18.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SAFLF's PEG of 2.34 indicates potential overvaluation.
Price to Book
The market values Safilo Group S.p.A. at 2.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.72 times EBITDA. This signals the market has high growth expectations.
How Well Does SAFLF Make Money?
Net Profit Margin
For every $100 in sales, Safilo Group S.p.A. keeps $4.99 as profit after all expenses.
Operating Margin
Core operations generate 5.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.37 in profit for every $100 of shareholder equity.
ROA
Safilo Group S.p.A. generates $6.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Safilo Group S.p.A. generates limited operating cash flow of $77.91M, signaling weaker underlying cash strength.
Free Cash Flow
Safilo Group S.p.A. produces free cash flow of $70.61M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.18 in free cash annually.
FCF Yield
SAFLF converts 10.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SAFLF Stacks Against Its Sector Peers
| Metric | SAFLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.03 | 28.96 | Better (Cheaper) |
| ROE | 12.37% | 716.00% | Weak |
| Net Margin | 4.99% | -46137.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.35 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 4.52 | Neutral |
| ROA | 6.47% | -17407.00% (disorted) | Weak |
SAFLF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Safilo Group 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
-21.88%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
105.02%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
112.05%
Industry Style: Defensive, Growth, Innovation
High Growth