BRUNELLO CUCINELLI SPA (BC.MI) Stock Fundamental Analysis
BIT:BC - Euronext Milan - IT0004764699 - Common Stock - Currency: EUR
Overall BC gets a fundamental rating of 3 out of 10. We evaluated BC against 40 industry peers in the Textiles, Apparel & Luxury Goods industry. BC scores excellent on profitability, but there are concerns on its financial health. BC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year BC was profitable.
In the past year BC had a positive cash flow from operations.
Of the past 5 years BC 4 years were profitable.
In the past 5 years BC always reported a positive cash flow from operatings.
1.2 Ratios
BC's Return On Assets of 7.41% is fine compared to the rest of the industry. BC outperforms 70.00% of its industry peers.
BC has a better Return On Equity (26.10%) than 82.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.10%, BC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 26.1% | ||
| ROIC | 13.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BC (9.36%) is better than 70.00% of its industry peers.
In the last couple of years the Profit Margin of BC has grown nicely.
Looking at the Operating Margin, with a value of 16.81%, BC is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
BC's Operating Margin has improved in the last couple of years.
BC's Gross Margin of 92.01% is amongst the best of the industry. BC outperforms 100.00% of its industry peers.
BC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.81% | ||
| PM (TTM) | 9.36% | ||
| GM | 92.01% |
OM growth 3Y15.22%
OM growth 5Y3.83%
PM growth 3Y7.67%
PM growth 5Y1.56%
GM growth 3Y2.95%
GM growth 5Y0.83%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BC is creating some value.
BC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.33 indicates that BC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.33, BC belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Debt to FCF ratio of BC is 5.26, which is a neutral value as it means it would take BC, 5.26 years of fcf income to pay off all of its debts.
BC has a Debt to FCF ratio (5.26) which is comparable to the rest of the industry.
BC has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
BC has a Debt to Equity ratio of 1.49. This is amonst the worse of the industry: BC underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 5.33 |
ROIC/WACC1.67
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.26 indicates that BC should not have too much problems paying its short term obligations.
BC's Current ratio of 1.26 is on the low side compared to the rest of the industry. BC is outperformed by 67.50% of its industry peers.
A Quick Ratio of 0.50 indicates that BC may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, BC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
BC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Revenue has grown by 16.36% in the past year. This is quite good.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)16.36%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.62%
3.2 Future
BC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -22.98% yearly.
Based on estimates for the next years, BC will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
EPS Next Y1.97%
EPS Next 2Y17.03%
EPS Next 3Y12.21%
EPS Next 5Y-22.98%
Revenue Next Year14.11%
Revenue Next 2Y10.67%
Revenue Next 3Y10.48%
Revenue Next 5Y5.73%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 187.02, the valuation of BC can be described as expensive.
Based on the Price/Earnings ratio, BC is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of BC to the average of the S&P500 Index (28.88), we can say BC is valued expensively.
Based on the Price/Forward Earnings ratio of 136.04, the valuation of BC can be described as expensive.
62.50% of the companies in the same industry are cheaper than BC, based on the Price/Forward Earnings ratio.
BC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 187.02 | ||
| Fwd PE | 136.04 |
4.2 Price Multiples
80.00% of the companies in the same industry are cheaper than BC, based on the Enterprise Value to EBITDA ratio.
BC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BC is more expensive than 77.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.37 | ||
| EV/EBITDA | 21.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BC may justify a higher PE ratio.
A more expensive valuation may be justified as BC's earnings are expected to grow with 12.21% in the coming years.
PEG (NY)94.75
PEG (5Y)N/A
EPS Next 2Y17.03%
EPS Next 3Y12.21%
5. Dividend
5.1 Amount
BC has a yearly dividend return of 0.95%, which is pretty low.
The stock price of BC dropped by -20.45% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.55, BC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, BC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of BC grows each year by 23.53%, which is quite nice.
Dividend Growth(5Y)23.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
62.48% of the earnings are spent on dividend by BC. This is not a sustainable payout ratio.
The Dividend Rate of BC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP62.48%
EPS Next 2Y17.03%
EPS Next 3Y12.21%
BIT:BC (4/30/2025, 7:00:00 PM)
99.12
-1.18 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners34.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.74B
Analysts76.52
Price Target118.22 (19.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.78
Dividend Growth(5Y)23.53%
DP62.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-2.75%
Max Revenue beat(2)-1.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)0.89%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.22%
PT rev (3m)8.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.83%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 187.02 | ||
| Fwd PE | 136.04 | ||
| P/S | 5.54 | ||
| P/FCF | 44.37 | ||
| P/OCF | 29.1 | ||
| P/B | 15.46 | ||
| P/tB | 16.02 | ||
| EV/EBITDA | 21.23 |
EPS(TTM)0.53
EY0.53%
EPS(NY)0.73
Fwd EY0.74%
FCF(TTM)2.23
FCFY2.25%
OCF(TTM)3.41
OCFY3.44%
SpS17.88
BVpS6.41
TBVpS6.19
PEG (NY)94.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 26.1% | ||
| ROCE | 18.78% | ||
| ROIC | 13.1% | ||
| ROICexc | 14.27% | ||
| ROICexgc | 14.48% | ||
| OM | 16.81% | ||
| PM (TTM) | 9.36% | ||
| GM | 92.01% | ||
| FCFM | 12.49% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y15.22%
OM growth 5Y3.83%
PM growth 3Y7.67%
PM growth 5Y1.56%
GM growth 3Y2.95%
GM growth 5Y0.83%
F-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 55.02% | ||
| Cap/Sales | 6.56% | ||
| Interest Coverage | 13.25 | ||
| Cash Conversion | 66.3% | ||
| Profit Quality | 133.51% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.33 |
F-Score8
WACC7.84%
ROIC/WACC1.67
Cap/Depr(3y)55.1%
Cap/Depr(5y)51.31%
Cap/Sales(3y)7.01%
Cap/Sales(5y)7.44%
Profit Quality(3y)127.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y1.97%
EPS Next 2Y17.03%
EPS Next 3Y12.21%
EPS Next 5Y-22.98%
Revenue 1Y (TTM)16.36%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.62%
Revenue Next Year14.11%
Revenue Next 2Y10.67%
Revenue Next 3Y10.48%
Revenue Next 5Y5.73%
EBIT growth 1Y24.3%
EBIT growth 3Y40.03%
EBIT growth 5Y20.48%
EBIT Next Year89.18%
EBIT Next 3Y32.24%
EBIT Next 5Y23.81%
FCF growth 1Y1.13%
FCF growth 3Y-16.66%
FCF growth 5Y6.61%
OCF growth 1Y6.72%
OCF growth 3Y-3.18%
OCF growth 5Y10.42%