ScoreWhy is Prada SpA ?
1
Poor long term growth as Net Sales has grown by an annual rate of -2.71% and Operating profit at -21.36% over the last 5 years
2
Negative results in Jun 26
- ROCE(HY) Lowest at 18.05%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,246.6
- RAW MATERIAL COST(Y) Grown by 5.08% (YoY)
3
With ROE of 6.75%, it has a Very Expensive valuation with a 2.39 Price to Book Value
- Over the past year, while the stock has generated a return of -19.82%, its profits have fallen by -38.8%
4
Below par performance in long term as well as near term
- Along with generating -19.82% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Prada SpA should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Prada SpA for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Prada SpA
-100.0%
31.33
37.25%
Hang Seng Hong Kong
-5.07%
-0.26
18.70%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.71%
EBIT Growth (5y)
-21.36%
EBIT to Interest (avg)
63.02
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
0.72
Tax Ratio
29.93%
Dividend Payout Ratio
51.29%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
31.93%
ROE (avg)
19.61%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
2.39
EV to EBIT
25.58
EV to EBITDA
16.13
EV to Capital Employed
2.15
EV to Sales
3.65
PEG Ratio
NA
Dividend Yield
3.33%
ROCE (Latest)
8.40%
ROE (Latest)
6.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 28,480.73 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 12.54 times
NET SALES(Q)
Highest at HKD 27,819.24 MM
-15What is not working for the Company
ROCE(HY)
Lowest at 18.05%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,246.6
RAW MATERIAL COST(Y)
Grown by 5.08% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 83.04 %
INTEREST(Q)
Highest at HKD 733.25 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 32.86 %
PRE-TAX PROFIT(Q)
Lowest at HKD 4,106.67 MM
NET PROFIT(Q)
Lowest at HKD 2,987.72 MM
EPS(Q)
Lowest at HKD 1.17
Here's what is working for Prada SpA
Operating Cash Flow
Highest at HKD 28,480.73 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Net Sales
Highest at HKD 27,819.24 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (HKD MM)
Debtors Turnover Ratio
Highest at 12.54 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at HKD 4,361.41 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (HKD MM)
Depreciation
At HKD 4,361.41 MM has Grown at 14.61%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (HKD MM)
Here's what is not working for Prada SpA
Interest Coverage Ratio
Lowest at 1,246.6
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at HKD 733.25 MM
in the last five periods and Increased by 48.03% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (HKD MM)
Operating Profit Margin
Lowest at 32.86 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at HKD 4,106.67 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (HKD MM)
Net Profit
Lowest at HKD 2,987.72 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (HKD MM)
EPS
Lowest at HKD 1.17
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (HKD)
Debt-Equity Ratio
Highest at 83.04 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 5.08% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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