Safilo Group S.p.A.
Safilo Group S.p.A. Fundamental Analysis
Safilo Group S.p.A. (SAFLY) shows weak financial fundamentals with a PE ratio of 15.73, profit margin of 4.65%, and ROE of 11.40%. The company generates $1.4B 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 38.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SAFLY's fundamental strength across five key dimensions:
Efficiency Score
WeakSAFLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSAFLY trades at attractive valuation levels.
Growth Score
WeakSAFLY faces weak or negative growth trends.
Financial Health Score
ExcellentSAFLY maintains a strong and stable balance sheet.
Profitability Score
WeakSAFLY struggles to sustain strong margins.
Key Financial Metrics
Is SAFLY Expensive or Cheap?
P/E Ratio
SAFLY trades at 15.73 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SAFLY's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values Safilo Group S.p.A. at 1.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.27 times EBITDA. This signals the market has high growth expectations.
How Well Does SAFLY Make Money?
Net Profit Margin
For every $100 in sales, Safilo Group S.p.A. keeps $4.65 as profit after all expenses.
Operating Margin
Core operations generate 6.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.40 in profit for every $100 of shareholder equity.
ROA
Safilo Group S.p.A. generates $5.80 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 $129.23M, signaling weaker underlying cash strength.
Free Cash Flow
Safilo Group S.p.A. produces free cash flow of $115.94M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.39 in free cash annually.
FCF Yield
SAFLY converts 7.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SAFLY Stacks Against Its Sector Peers
| Metric | SAFLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.73 | 28.25 | Better (Cheaper) |
| ROE | 11.40% | 780.00% | Weak |
| Net Margin | 4.65% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.29 | 0.30 | Neutral |
| Current Ratio | 1.86 | 4.66 | Neutral |
| ROA | 5.80% | -14687.00% (disorted) | Weak |
SAFLY outperforms its industry in 1 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