We are maintaining our fair value estimate for no-moat Ferragamo as the company reported weak first-quarter revenue, on the lower end of peers. Continuing weakness suggests that as a smaller player, Ferragamo is harder hit by the industry slowdown, and the appointment of Maximilian Davis’ collections have so far failed to improve brand appeal two years into his appointment.
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.
Slow inventory turns and faster growth in the clearance channel may be damaging for the brand’s luxury perception.
|
Metric
|
SFER
|
KER
|
01913
|
|---|---|---|---|
Price/Earnings (Normalized) | 39.59 | 13.43 | 27.76 |
Price/Book Value | 2.14 | 2.68 | 4.95 |
Price/Sales | 1.29 | 2.08 | 4.12 |
Price/Cash Flow | 8.57 | 9.09 | 15.23 |
|
Metric
|
SFER
|
KER
|
01913
|
|---|---|---|---|
Quick Ratio | 1.22 | 0.68 | 0.84 |
Current Ratio | 2.04 | 1.38 | 1.49 |
Interest Coverage | 3.04 | 12.44 | 13.10 |
|
Metric
|
SFER
|
KER
|
01913
|
|---|---|---|---|
Return on Assets (Normalized) | 1.69% | 8.33% | 9.47% |
Return on Equity (Normalized) | 4.05% | 20.97% | 19.42% |
Return on Invested Capital (Normalized) | 2.66% | 11.34% | 11.74% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
LVMHF
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LVMUY
| Lvmh Moet Hennessy Louis Vuitton SE ADR | Ksndbjgbb | Rqhs | $424.6 Bil | |
HESAF
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HESAY
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CHDRY
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CHDRF
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SWGAY
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TPR
| Tapestry Inc | Gwsqhvhsl | Zlvsygs | $9.5 Bil | |
CPRI
| Capri Holdings Ltd | Pbqdwfwk | Byn | $4.2 Bil | |
REAL
| The RealReal Inc | Wfxv | Tmw | $447.2 Mil |
