One-glance verdict
Undervalued
$6.39 our estimate vs market $3.02
Wall Street consensus: $4.50 (-29.6% lower than our fair-value estimate)
53% below our estimate, below the bear case
Fundamentals snapshot
PUMA SE
PUMSY · PNK · Consumer Cyclical · Footwear & Accessories
Current price
$3.02
52-week range
$1.71 - $3.46
Market cap
$4.58B
Balance sheet
Distressed
-3.17x Concerning
Net debt $2.93B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 3/10 years.
- Reward Dividend yield is 2.1% with 7-year payout history.
- Risk Net debt grew 110.3% over 3 years.
- Risk Return on equity was -27.3% last year — the company lost money on shareholders' equity.
What this company does
PUMA SE
PUMA is a global company that designs and sells athletic shoes, clothing, and accessories for a wide range of sports as well as for everyday casual wear. The company earns money primarily by selling these items in its own stores, on its website, and in large quantities to other retailers. Because PUMA is a well-known brand, its performance often depends on its popularity with consumers and its ability to efficiently manage its supply chain (the network of factories and shipping routes that get products to stores).
How the company got here
PUMA's story begins in a small German town in 1924 with two brothers, Rudolf and Adolf Dassler, who started a shoe factory together. After a falling out between them in 1948, the brothers split to form two separate companies: Rudolf founded PUMA, while his brother created Adidas. PUMA quickly made a name for itself by creating innovative athletic shoes, like the first football boot with screw-in studs. Over the years, the brand became famous for its iconic "Formstrip" logo and for outfitting legendary athletes, cementing its place as a major player in the global sportswear industry.
What it actually does
PUMA designs, develops, and sells athletic and casual footwear, clothing, and accessories for men, women, and children. You would recognize their products in stores by the leaping cat logo and the distinctive "Formstrip" design on the side of their shoes and apparel. The company offers products for a wide variety of sports including soccer, running, basketball, and golf, as well as lifestyle collections for everyday wear. PUMA sells its products through its own retail stores and online, but a large portion of its sales comes from selling in bulk to other retailers, a practice known as wholesale.
Footwear
This is PUMA's largest and most well-known business, making up the biggest slice of its sales. The company designs and sells a wide variety of shoes, from performance footwear for serious athletes in sports like soccer and running to casual sneakers for everyday fashion. Customers, both individuals and other stores, pay for these shoes which are the main driver of PUMA's revenue (the total money a company brings in from sales).
Apparel
This segment includes all the clothing PUMA sells, such as jerseys, tracksuits, t-shirts, and shorts. It is the second-largest part of PUMA's business after footwear. Just like with its shoes, the company creates performance apparel designed for sports activities as well as fashion-focused clothing for casual wear. This division makes money by selling these clothing items to both individual shoppers and wholesale partners (other retailers who then sell to the public).
Accessories
This is the smallest of PUMA's main product categories, but still an important part of its business. It includes items like bags, hats, socks, and sports equipment such as soccer balls and golf clubs under its Cobra Golf brand. The company also makes money through licensing agreements, where it allows other companies to use the PUMA brand on products like glasses and watches in exchange for a fee.
What management is betting on now
PUMA's leadership is focused on a major strategic reset to strengthen its position as a top global sports brand. A key part of this plan is to elevate the brand by focusing more on high-quality distribution channels and reducing sales through mass-market retailers that might cheapen its image. They are also emphasizing their performance-based products in key sports like football, running, and training to boost the brand's credibility with serious athletes. The goal is to create more desirable products with compelling stories that connect with customers on an emotional level, ultimately driving long-term, profitable growth.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $6.39 vs current price $3.02
Wall Street consensus is the average analyst price target: $4.50 (-29.6% lower than our fair-value estimate).
Our most-likely fair value is $6.39 a share — about 111.3% above today's price of $3.02, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $2.9B. Interest coverage -3.2x.
Net debt
$2.93B
Interest coverage
-3.17x
PUMA SE's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
PUMSY
BASELINE
PUMA SE
Total debt $3.30B Interest coverage -3.17x This is the baseline the peer rows are being compared against.
Total debt $11.18B Interest coverage 34.60x This peer still has a real interest-payment cushion, while PUMSY does not.
Total debt $6.80B Interest coverage 9.04x This peer still has a real interest-payment cushion, while PUMSY does not.
Total debt $1.94B Interest coverage -1.17x Neither company has much profit cushion over interest right now.
What you should know
The case for and against PUMSY
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 2.1% with 7-year payout history.
Risks
-
Net debt grew 110.3% over 3 years.
-
Return on equity was -27.3% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 7.6% to 3.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
4.03x
P/B
2.09x
P/S
0.64x
EV/EBITDA
705.51x
PEG ratio
1.85x
Profitability
How much profit each dollar creates
Gross margin
45.1%
Operating margin
3.5%
Net margin
-8.6%
ROE
-27.3%
ROA
-1.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.54x
Current ratio
1.27x
Quick ratio
0.49x
Total debt
$3.30B
Total cash
$372.63M
Growth
How the business has been compounding
Revenue TTM
$8.19B
Revenue 5Y CAGR
-4.8%
EPS TTM
-0.48
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-364.75M
Free CF TTM
$-600.41M
FCF margin
-7.3%
Dividend
Shareholder payout
Yield
2.1%
Payout ratio
62.8%
Last ex-div date
2025-05-23