SAFILO GROUP SPA (SFL.MI) Stock Fundamental Analysis
BIT:SFL - Euronext Milan - IT0004604762 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SFL. SFL was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. SFL has only an average score on both its financial health and profitability. SFL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SFL was profitable.
SFL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SFL reported negative net income in multiple years.
SFL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.65%, SFL is in line with its industry, outperforming 48.78% of the companies in the same industry.
SFL has a worse Return On Equity (5.40%) than 65.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.57%, SFL is in line with its industry, outperforming 48.78% of the companies in the same industry.
SFL had an Average Return On Invested Capital over the past 3 years of 3.75%. This is significantly below the industry average of 10.72%.
The last Return On Invested Capital (5.57%) for SFL is above the 3 year average (3.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 5.4% | ||
| ROIC | 5.57% |
ROA(3y)1.8%
ROA(5y)-0.07%
ROE(3y)4.04%
ROE(5y)-6.46%
ROIC(3y)3.75%
ROIC(5y)N/A
1.3 Margins
SFL has a worse Profit Margin (2.24%) than 68.29% of its industry peers.
In the last couple of years the Profit Margin of SFL has remained more or less at the same level.
SFL has a Operating Margin of 4.61%. This is in the lower half of the industry: SFL underperforms 68.29% of its industry peers.
SFL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.68%, SFL is in line with its industry, outperforming 48.78% of the companies in the same industry.
In the last couple of years the Gross Margin of SFL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.61% | ||
| PM (TTM) | 2.24% | ||
| GM | 59.68% |
OM growth 3Y20.34%
OM growth 5YN/A
PM growth 3Y0.76%
PM growth 5YN/A
GM growth 3Y4.87%
GM growth 5Y3.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SFL is destroying value.
SFL has about the same amout of shares outstanding than it did 1 year ago.
SFL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SFL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.17 indicates that SFL is not a great score, but indicates only limited risk for bankruptcy at the moment.
SFL has a Altman-Z score (2.17) which is comparable to the rest of the industry.
SFL has a debt to FCF ratio of 4.73. This is a neutral value as SFL would need 4.73 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.73, SFL perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that SFL is not too dependend on debt financing.
SFL has a better Debt to Equity ratio (0.22) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.7
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.84 indicates that SFL should not have too much problems paying its short term obligations.
SFL's Current ratio of 1.84 is fine compared to the rest of the industry. SFL outperforms 65.85% of its industry peers.
A Quick Ratio of 1.08 indicates that SFL should not have too much problems paying its short term obligations.
SFL has a better Quick ratio (1.08) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 190.44% over the past year.
SFL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.32% yearly.
Looking at the last year, SFL shows a decrease in Revenue. The Revenue has decreased by -3.08% in the last year.
The Revenue has been growing slightly by 1.13% on average over the past years.
EPS 1Y (TTM)190.44%
EPS 3Y-5.32%
EPS 5YN/A
EPS Q2Q%129.82%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y0.81%
Revenue growth 5Y1.13%
Sales Q2Q%-2.81%
3.2 Future
SFL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.17% yearly.
Based on estimates for the next years, SFL will show a small growth in Revenue. The Revenue will grow by 2.49% on average per year.
EPS Next Y33.33%
EPS Next 2Y29.23%
EPS Next 3Y40.67%
EPS Next 5Y22.17%
Revenue Next Year2.29%
Revenue Next 2Y3.29%
Revenue Next 3Y3.47%
Revenue Next 5Y2.49%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.58, SFL is valued correctly.
Based on the Price/Earnings ratio, SFL is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
SFL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.32.
SFL is valuated reasonably with a Price/Forward Earnings ratio of 10.26.
SFL's Price/Forward Earnings ratio is rather cheap when compared to the industry. SFL is cheaper than 92.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. SFL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SFL is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
SFL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 4.94 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SFL's earnings are expected to grow with 40.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y29.23%
EPS Next 3Y40.67%
5. Dividend
5.1 Amount
No dividends for SFL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:SFL (6/13/2025, 7:00:00 PM)
0.829
-0.03 (-3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners30.19%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap343.40M
Analysts74
Price Target1.23 (48.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP3.42%
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-6.6%
PT rev (3m)-6.6%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 10.26 | ||
| P/S | 0.35 | ||
| P/FCF | 12.48 | ||
| P/OCF | 4.51 | ||
| P/B | 0.83 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 4.94 |
EPS(TTM)0.05
EY6.03%
EPS(NY)0.08
Fwd EY9.75%
FCF(TTM)0.07
FCFY8.01%
OCF(TTM)0.18
OCFY22.19%
SpS2.4
BVpS1
TBVpS0.58
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 5.4% | ||
| ROCE | 8.1% | ||
| ROIC | 5.57% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 9.09% | ||
| OM | 4.61% | ||
| PM (TTM) | 2.24% | ||
| GM | 59.68% | ||
| FCFM | 2.77% |
ROA(3y)1.8%
ROA(5y)-0.07%
ROE(3y)4.04%
ROE(5y)-6.46%
ROIC(3y)3.75%
ROIC(5y)N/A
ROICexc(3y)4.2%
ROICexc(5y)N/A
ROICexgc(3y)6.08%
ROICexgc(5y)N/A
ROCE(3y)5.46%
ROCE(5y)N/A
ROICexcg growth 3Y22.14%
ROICexcg growth 5YN/A
ROICexc growth 3Y22.14%
ROICexc growth 5YN/A
OM growth 3Y20.34%
OM growth 5YN/A
PM growth 3Y0.76%
PM growth 5YN/A
GM growth 3Y4.87%
GM growth 5Y3.28%
F-Score7
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.73 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 120.39% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 5.91 | ||
| Cash Conversion | 88.39% | ||
| Profit Quality | 123.38% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.17 |
F-Score7
WACC7.95%
ROIC/WACC0.7
Cap/Depr(3y)59.03%
Cap/Depr(5y)49.75%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)190.44%
EPS 3Y-5.32%
EPS 5YN/A
EPS Q2Q%129.82%
EPS Next Y33.33%
EPS Next 2Y29.23%
EPS Next 3Y40.67%
EPS Next 5Y22.17%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y0.81%
Revenue growth 5Y1.13%
Sales Q2Q%-2.81%
Revenue Next Year2.29%
Revenue Next 2Y3.29%
Revenue Next 3Y3.47%
Revenue Next 5Y2.49%
EBIT growth 1Y150.25%
EBIT growth 3Y21.31%
EBIT growth 5YN/A
EBIT Next Year108.42%
EBIT Next 3Y36.72%
EBIT Next 5Y24.27%
FCF growth 1Y-20.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.74%
OCF growth 3Y63.95%
OCF growth 5Y23.48%