Salvatore Ferragamo SpA SFER

Morningstar Rating

Company Report

Ferragamo Sales and Profits Pressured in Industry Downturn

Salvatore Ferragamo is an Italian monobrand company mainly known for its footwear and accessories. We believe the firm benefits from relatively strong control over distribution (over 70% of revenue is retail), while its strong representation in airport locations (about 150 travel retail stores) positions it well to benefit from growth in global travel flows and tourist luxury spending.

Price vs Fair Value

SFER is trading at a 143% premium.
Price
€6.73
Fair Value
€7.10
Uncertainty
High
1-Star Price
€75.49
5-Star Price
€6.39
Economic Moat
Fmn
Capital Allocation
Htvcsvj

Bulls Say, Bears Say

Bulls

Ferragamo is an early entrant in emerging markets, with a strong presence and brand recognition in Asia and South America. This positions it to benefit from middle-class growth in those markets.

Bears

Slow inventory turns and faster growth in the clearance channel may be damaging for the brand’s luxury perception.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
101.87
Price/Sales
1.03
Dividend Yield (Trailing)
1.49%
Dividend Yield (Forward)
1.49%
Total Yield
1.49%

Company Profile

Founded in 1927, Salvatore Ferragamo is an Italian monobrand company mainly known for its footwear and accessories. The company generates about 45% of revenue in the fragmented footwear category, 40% in leather goods, 6% in apparel, and 7% in accessories. It was one of the pioneers in establishing a presence in Asia, where it generates 32% of sales and other emerging markets (8% of sales in Central and South America). Ferragamo generates 24% of revenue in Europe, 28% in the US, and 8% in Japan.
Sector
Consumer Cyclical
Industry
Luxury Goods
Stock Style Box
Small Value
Total Number of Employees
3,644

Competitors

Valuation

Metric
SFER
KER
01913
Price/Earnings (Normalized)
101.8713.5422.44
Price/Book Value
1.581.954.45
Price/Sales
1.031.573.42
Price/Cash Flow
5.667.6510.62
Price/Earnings
SFER
KER
01913

Financial Strength

Metric
SFER
KER
01913
Quick Ratio
1.020.690.71
Current Ratio
1.801.381.36
Interest Coverage
1.666.5713.23
Quick Ratio
SFER
KER
01913

Profitability

Metric
SFER
KER
01913
Return on Assets (Normalized)
1.38%5.47%10.23%
Return on Equity (Normalized)
3.40%14.50%20.48%
Return on Invested Capital (Normalized)
2.47%7.76%12.74%
Return on Assets
SFER
KER
01913

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