RTL Group SA (RRTL) AI Stock Analysis

• Market Cap: €5.04B
• Dividend Yield: 6.4%
• Average Volume (3M): 108.25K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.65
• Revenue Growth: 2.77%
• EPS Growth: -31.49%
• Country: DE
• Employees: 12,941
• Sector: Services
• Sector Strength: N/A
• Industry: Broadcasting
• EPS (TTM): N/A
• Shares Outstanding: 154,742,800
• 10 Day Avg. Volume: 53,818
• 30 Day Avg. Volume: 108,251
• PEG Ratio: -5.43
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 7.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €32.00
• Price Target Upside: -4.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €38.00 ▲(13.10% Upside)

RTL Group SA's overall stock score is driven by its strong financial performance and attractive valuation, particularly the high dividend yield. However, mixed technical indicators suggest caution in the short term. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Strength

A significant increase in operating cash flow enhances liquidity, allowing RTL Group to invest in growth opportunities and service debt efficiently.

Balance Sheet Health

A solid equity base and moderate leverage provide financial stability, enabling RTL Group to withstand economic fluctuations and invest in strategic initiatives.

Revenue Stability

Consistent revenue growth reflects RTL Group's strong market position and ability to attract advertisers and subscribers, supporting long-term business sustainability.

Negative Factors

Net Profit Margin Pressure

A declining net profit margin indicates challenges in maintaining profitability, which could impact future earnings and shareholder returns if not addressed.

EPS Decline

A significant drop in EPS suggests potential issues in operational efficiency or increased costs, which may affect investor confidence and capital allocation.

Leverage Concerns

An increase in debt levels, despite moderate leverage, could strain financial resources and limit flexibility for future investments if not managed carefully.

RTL Group SA Business Overview & Revenue Model

Company Description

RTL Group S.A., an entertainment company, operates television (TV) channels and radio stations, and provides streaming services in Germany, France, the Netherlands, Belgium, the United Kingdom, the United States, and internationally. The RTL Deutschland segment operates RTL, Vox, Super RTL, Toggo Plus, NTV, Nitro, Vox Up, and RTL Up free-to-air channels; RTL Crime, RTL Passion, RTL Living, GEO Television, and Now! thematic pay channels; and RTL Zwei, an equity participation in the free-to-air channel. This segment also offers streaming service RTL+; engages in content activities, such as the production companies RTL Studios and RTL News; and provision of RTL Radio Deutschland and ad-tech business, Smartclip. The Groupe M6 segment operates television channels; radio stations; and digital services, including mobile applications and IPTV services. The Fremantle segment is involved in the content production comprising of distribution and licensing business. The RTL Nederland segment operates RTL 4, RTL 5, RTL 7, RTL 8, RTL Z, RTL Lounge, RTL Crime, and RTL Telekids TV channels; and Videoland, a pay streaming service, as well as offers RTL XL, a catch-up TV service in the Netherlands. The Other segment operates RTL play, a streaming service; RTL-TVI; RTL Klub; Club RTL; RTL Most, a streaming platform; RTL Televizija; RTL 2; RTL Kockica children's channels; RTL Luxembourg; RTL Radio Letzebuerg; and RTL Tele Letzebuerg, a general interest TV channel. The company was founded in 1924 and is based in Luxembourg City, Luxembourg. RTL Group S.A. is a subsidiary of Bertelsmann Capital Holding GmbH.

How the Company Makes Money

RTL Group generates revenue through multiple key streams, primarily from advertising sales, subscription fees, and content production. Advertising revenue forms the largest portion of its income, with the company leveraging its extensive portfolio of television channels and radio stations to attract advertisers. Additionally, RTL Group earns subscription fees from viewers who access its premium content through pay-TV services. The company also profits from producing and licensing television shows, films, and other media content for both domestic and international markets. Strategic partnerships with digital platforms and other media companies further enhance its revenue opportunities, while a focus on content diversification and innovation allows RTL Group to adapt to changing consumer preferences and market trends.

RTL Group SA Financial Statement Overview

Summary

RTL Group SA demonstrates strong financial health with stable revenues, effective cost management, and robust cash flows. The company's balance sheet is well-balanced, with moderate leverage and a solid equity base. Despite some pressure on net profit margins, the overall financial position remains positive, supported by healthy cash generation and prudent financial management.

Income Statement

RTL Group SA has shown a steady revenue stream with a slight increase from the previous year. The gross profit margin remains strong at around 56.2% for 2024, indicating effective cost management. However, the net profit margin has decreased to 7.4%, which can be attributed to lower net income. The EBIT margin remains stable, but the EBITDA margin has improved to 14.9%, suggesting better earnings before accounting for interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet exhibits a solid equity base with an equity ratio of 42.1%, providing financial stability. The debt-to-equity ratio stands at approximately 0.33, indicating moderate leverage. Although there is a slight increase in total debt, stockholders' equity has also grown, maintaining a healthy financial structure. Return on equity is relatively moderate at 10.7%, reflecting a decent return on shareholder investments.

Cash Flow

RTL Group SA's cash flow statements show a remarkable increase in operating cash flow, up by 41.6% from the previous year. The free cash flow has also grown significantly, ensuring liquidity for further investments and debt servicing. The operating cash flow to net income ratio is robust at 1.65, highlighting efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.16B	6.25B	6.23B	6.59B	6.64B	6.02B
Gross Profit	3.38B	3.51B	3.34B	3.79B	4.10B	3.90B
EBITDA	760.50M	932.00M	849.00M	1.09B	2.13B	1.12B
Net Income	359.00M	460.00M	467.00M	673.00M	1.30B	492.00M
Balance Sheet
Total Assets	9.70B	10.23B	9.67B	10.13B	10.49B	9.07B
Cash, Cash Equivalents and Short-Term Investments	368.00M	594.00M	761.00M	754.00M	840.00M	1.00B
Total Debt	1.73B	1.43B	1.24B	1.07B	1.02B	1.15B
Total Liabilities	4.99B	5.04B	4.57B	4.92B	5.22B	4.72B
Stockholders Equity	3.89B	4.31B	4.25B	4.42B	4.54B	3.71B
Cash Flow
Free Cash Flow	663.00M	587.00M	360.00M	262.00M	737.00M	755.00M
Operating Cash Flow	777.00M	761.00M	537.00M	463.00M	932.00M	933.00M
Investing Cash Flow	-43.00M	-122.00M	26.00M	658.00M	-114.00M	-678.00M
Financing Cash Flow	-804.00M	-637.00M	-578.00M	-1.09B	-759.00M	-174.00M

RTL Group SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RRTL, the sentiment is Neutral. The current price of 33.6 is above the 20-day moving average (MA) of 33.07, below the 50-day MA of 34.07, and below the 200-day MA of 33.69, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 90.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:RRTL.

RTL Group SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNTN	74 Outperform	€3.16B	12.11	18.42%	6.95%	-0.62%	16.87%
RRTL	69 Neutral	€5.04B	14.05	6.17%	6.40%	2.77%	-31.49%
1U1	66 Neutral	€3.79B	25.11	2.07%	0.21%	-0.46%	-50.77%
UTDI	61 Neutral	€5.03B	37.64	2.15%	7.55%	-2.19%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PSM	44 Neutral	€1.15B	-15.42	-0.47%	1.03%	-4.06%	82.42%