From now on, I will regularly analyze interesting or simply forgotten stocks - with a view to opportunities, risks and valuation. Today's focus: PUMA SE, a sporting goods giant with challenges, but also potential. ->$PUM (-2,41%)
🔍 Disclaimer: No investment advice - just my personal assessment. Please do your own research!
PUMA SE is one of the world's leading sporting goods manufacturers and competes with industry giants such as Nike and Adidas. While the company has a strong long-term market position, the share price has suffered considerable losses in recent months. This report analyzes PUMA's current situation, the most important challenges and the valuation of the share from a fundamental perspective.
1. fundamentals and current business development
In financial year 2024, PUMA recorded currency-adjusted sales growth of 4.4% to around €9.1 billion. Despite a challenging market environment, the company was able to increase its gross profit margin to 47.7%, underlining the brand's resilience. The operating result (EBIT) remained stable at 620 million euros.
Nevertheless, there was a slowdown in growth compared to previous years. Developments in the EMEA region (Europe, Middle East and Africa) were particularly challenging, while the markets in North and Latin America delivered solid results.
2 Challenges and strategic measures
PUMA is facing several challenges that require both operational and strategic adjustments:
- Weakening consumer sentiment: ongoing uncertainty due to global economic fluctuations and high inflation rates is dampening the purchasing power of many consumers.
- Geopolitical risks: Trade conflicts and currency fluctuations have a noticeable impact on margins and sales growth.
- Increasing efficiency and cutting costs: PUMA has announced plans to cut around 500 jobs worldwide and restructure unprofitable business units. These measures are intended to improve profitability in the long term.
Despite these challenges, PUMA remains strategically focused on growth. The focus is on strengthening direct sales channels (e-commerce and flagship stores) and on partnerships in the sports and lifestyle sector.
3. valuation of the share - undervalued or fairly priced?
PUMA shares have lost considerable value in recent months and are currently trading close to a multi-year low.
- The current price is around EUR 23.68, which corresponds to a fall of almost 55% from the 52-week high of EUR 52.96.
- The average analyst price target is EUR 33.95, with a range of EUR 25 to EUR 50.
- The P/E ratio (price/earnings ratio) for 2025 is estimated at around 16, which appears relatively low by historical standards.
Some analysts argue that the share could be undervalued due to the solid brand strength and long-term growth prospects. However, others continue to see risks, particularly if the weak consumer environment persists for longer.
4 Conclusion - opportunities and risks for investors
PUMA is undoubtedly a strongly positioned company with global brand recognition. In the short term, the market environment remains challenging, especially due to macroeconomic uncertainties. However, investors with a long-term investment horizon could see attractive entry opportunities if they believe in the long-term recovery of the sporting goods industry.
For investors considering a position in PUMA, it remains crucial to closely monitor the upcoming quarterly results and the progress of the restructuring measures.