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 41 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of SFL get a neutral evaluation. Nothing too spectacular is happening here. SFL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SFL had positive earnings in the past year.
In the past year SFL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SFL reported negative net income in multiple years.
Of the past 5 years SFL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SFL (2.65%) is comparable to the rest of the industry.
SFL has a Return On Equity of 5.40%. This is in the lower half of the industry: SFL underperforms 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 10.00%.
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
The Profit Margin of SFL (2.24%) is worse 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's Operating Margin of 4.61% is on the low side compared to the rest of the industry. SFL is outperformed by 68.29% of its industry peers.
In the last couple of years the Operating Margin of SFL has grown nicely.
With a Gross Margin value of 59.68%, SFL perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
SFL's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, SFL has about the same amount of shares outstanding.
SFL has more shares outstanding than it did 5 years ago.
SFL has a better debt/assets ratio than last year.
2.2 Solvency
SFL has an Altman-Z score of 2.20. This is not the best score and indicates that SFL is in the grey zone with still only limited risk for bankruptcy at the moment.
SFL's Altman-Z score of 2.20 is in line compared to the rest of the industry. SFL outperforms 51.22% of its industry peers.
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.
SFL's Debt to FCF ratio of 4.73 is in line compared to the rest of the industry. SFL outperforms 51.22% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that SFL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.22, SFL belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.7
WACC7.98%
2.3 Liquidity
SFL has a Current Ratio of 1.84. This is a normal value and indicates that SFL is financially healthy and should not expect problems in meeting its short term obligations.
SFL has a better Current ratio (1.84) than 65.85% of its industry peers.
SFL has a Quick Ratio of 1.08. This is a normal value and indicates that SFL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SFL (1.08) is better than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
SFL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 190.44%, which is quite impressive.
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
Based on estimates for the next years, SFL will show a very strong growth in Earnings Per Share. The EPS will grow by 22.17% on average per year.
SFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.49% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SFL is valuated rather expensively with a Price/Earnings ratio of 18.02.
SFL's Price/Earnings ratio is a bit cheaper when compared to the industry. SFL is cheaper than 60.98% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, SFL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.15, the valuation of SFL can be described as reasonable.
Based on the Price/Forward Earnings ratio, SFL is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, SFL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFL indicates a somewhat cheap valuation: SFL is cheaper than 78.05% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SFL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 5.21 |
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.
A more expensive valuation may be justified as SFL's earnings are expected to grow with 40.67% in the coming years.
PEG (NY)0.54
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 (6/9/2025, 5:26:22 PM)
0.901
+0.02 (+1.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners34.84%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap373.23M
Analysts74
Price Target1.23 (36.51%)
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 | 18.02 | ||
| Fwd PE | 11.15 | ||
| P/S | 0.38 | ||
| P/FCF | 13.57 | ||
| P/OCF | 4.9 | ||
| P/B | 0.9 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)0.05
EY5.55%
EPS(NY)0.08
Fwd EY8.97%
FCF(TTM)0.07
FCFY7.37%
OCF(TTM)0.18
OCFY20.42%
SpS2.4
BVpS1
TBVpS0.58
PEG (NY)0.54
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 | 2.2 |
F-Score7
WACC7.98%
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%