One-glance verdict
Undervalued
$4.72 our estimate vs market $2.65
Wall Street consensus: $4.50 (-4.6% lower than our fair-value estimate)
44% below our estimate, below the bear case
Fundamentals snapshot
PUMA SE
PUMSY · PNK · Consumer Cyclical · Footwear & Accessories
Current price
$2.65
52-week range
$1.71 - $3.46
Market cap
$4.01B
Balance sheet
Stretched
4.86x Stretched
Net debt $2.57B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Net debt grew 110.3% over 3 years.
- Risk Return on equity was -22.6% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 0.0% (peer median: 6.1%).
What this company does
PUMA SE
Puma sells athletic and lifestyle gear for various sports, making most of its money from selling these products through its own stores and online, as well as to other retailers. This wide reach helps them sell products everywhere and makes their sales (or revenue) a key indicator of how well they are doing.
How the company got here
PUMA SE, or simply PUMA, has a history that began in 1919 with the Dassler Brothers Shoe Factory, founded by brothers Rudolf and Adolf Dassler in Germany. The brothers initially worked together, but a falling out led them to split the company in 1948. Rudolf Dassler went on to found PUMA, while his brother Adolf founded Adidas. This split created a long-standing rivalry between the two sportswear giants. PUMA quickly established itself by focusing on performance-driven athletic footwear, gaining international recognition through athletes wearing its products in major competitions. The brand's signature "Formstrip" design was introduced in 1958, becoming a recognizable symbol of the company.
What it actually does
PUMA designs, manufactures, and sells sports and sports lifestyle products worldwide. These products include footwear, apparel, and accessories for a variety of sports and everyday wear. The company operates under its main PUMA brand, as well as the Cobra Golf brand for golf-specific equipment and apparel. PUMA's products are sold through its own retail stores, online shops, and wholesale partners, reaching consumers across Europe, the Middle East, Africa, India, North America, Latin America, Greater China, and the rest of Asia-Pacific.
Footwear
This is PUMA's largest business segment, encompassing all types of shoes. It includes performance footwear designed for specific sports like football, running, basketball, and golf, as well as lifestyle sneakers that blend athletic style with everyday comfort. The company develops these products with a focus on innovation, aiming to provide athletes and consumers with the best in comfort, durability, and performance. Revenue from footwear makes up a significant portion of PUMA's overall sales.
Apparel
The apparel segment includes a wide range of clothing for sports and casual wear. This covers everything from performance athletic wear designed for training and competition to stylish athleisure items. PUMA designs apparel for various sports, including football, motorsport, and golf, as well as general fitness and lifestyle. This segment is a substantial contributor to PUMA's total revenue, offering a broad selection of clothing options for men, women, and children.
Accessories
This segment covers all the other products PUMA offers besides footwear and apparel. It includes items like bags, balls, gloves, hats, and other sports-related accessories. These products complement the footwear and apparel lines, providing consumers with a complete PUMA-branded experience. While typically smaller in revenue contribution compared to footwear and apparel, accessories are important for brand visibility and offering a full range of sports lifestyle products.
stichd
stichd is a PUMA-owned company that focuses specifically on the design, development, sourcing, marketing, and sale of socks and bodywear. It also handles the distribution and sale of licensed products, and operates fan shops and online stores for sports clubs and events like Formula 1 races. While it operates somewhat independently, stichd is an integral part of PUMA's overall business, contributing to brand presence and sales, particularly in specialized areas.
What management is betting on now
PUMA's current strategy focuses on elevating its brand to become a top global sports brand. This involves strengthening its core identity, enhancing its performance sports business to build credibility, and increasing its relevance in the "Sportstyle" category, which blends athletic and fashion elements. Management is also prioritizing improving distribution quality by working with strategic partners and refining its direct-to-consumer (DTC) channels to offer a better brand experience. The company aims for long-term growth by focusing on innovation, consumer connection, and operational efficiency, including reducing administrative costs.
Price history
How the share price has moved
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Loading price history…
Is it cheap or expensive?
Fair value $4.72 vs current price $2.65
Wall Street consensus is the average analyst price target: $4.50 (-4.6% lower than our fair-value estimate).
Our most-likely fair value is $4.72 a share — about 78.0% above today's price of $2.65, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $2.6B. Interest coverage 4.9x.
Net debt
$2.57B
Interest coverage
4.86x
PUMA SE's profit covers its interest bill about 4.9 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
PUMSY
BASELINE
PUMA SE
Total debt $2.99B Interest coverage 4.86x This is the baseline the peer rows are being compared against.
Total debt $1.38B Interest coverage -1.17x -100% vs PUMSY This peer has almost no interest-payment cushion compared with PUMSY.
Total debt $472.33M Interest coverage 499.17x +10,164% vs PUMSY Carries about 102.6x more debt cushion than PUMSY.
Total debt $1.69B Interest coverage 10.05x +107% vs PUMSY Carries about 2.1x more debt cushion than PUMSY.
Total debt $461.24M Interest coverage 13.21x +172% vs PUMSY Carries about 2.7x more debt cushion than PUMSY.
What you should know
The case for and against PUMSY
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Net debt grew 110.3% over 3 years.
-
Return on equity was -22.6% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.0% (peer median: 6.1%).
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)
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Forward P/E
3.53x
P/B
1.90x
P/S
0.57x
EV/EBITDA
-363.87x
PEG ratio
0.38x
Profitability
How much profit each dollar creates
Gross margin
45.5%
Operating margin
-2.5%
Net margin
-6.4%
ROE
-22.6%
ROA
-1.7%
Health
Liquidity and balance-sheet strength
Debt / equity
1.45x
Current ratio
1.26x
Quick ratio
0.48x
Total debt
$2.99B
Total cash
$418.77M
Growth
How the business has been compounding
Revenue TTM
$7.86B
Revenue 5Y CAGR
-4.8%
EPS TTM
-0.35
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-358.97M
Free CF TTM
$-590.89M
FCF margin
-7.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
63.9%
Last ex-div date
2025-05-23