RTL Group SA (RRTL) AI Stock Analysis

• Market Cap: €5.35B
• Dividend Yield: 6.31%
• Average Volume (3M): 108.25K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.70
• Revenue Growth: 2.77%
• EPS Growth: -31.49%
• Country: DE
• Employees: 12,941
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 6.16
• Shares Outstanding: 154,742,800
• 10 Day Avg. Volume: 53,818
• 30 Day Avg. Volume: 108,251
• PEG Ratio: 0.05
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 12.94
• 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: €36.25
• Price Target Upside: 4.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.35
• Revenue Forecast (FY): €6.22B

• Rating: 71 Outperform
• Price Target: €41.00 ▲(18.50% Upside)
• Action: Upgraded Date: 03/14/26
• Date: Action: Upgraded 03/14/26

The score is driven primarily by strong valuation (low P/E and high dividend yield) and a stable, conservatively leveraged balance sheet. Offsetting this, 2025 showed weaker core operating profitability and a sharp decline in free cash flow, while technical signals are mixed with negative MACD limiting momentum support.

Positive Factors

Diversified media & content business

A multi‑pronged business model combining advertising-funded TV/radio, subscription/hybrid streaming and content production/distribution creates structural resilience. Diversified revenue streams and IP ownership help smooth cyclical ad markets and enable recurring monetization via licensing and international format sales.

Conservative balance sheet and improving leverage

Low and improving leverage with a sizable equity base supports investment flexibility and downside protection. Strong ROE indicates efficient capital use; a conservative balance sheet enables continued content investment, M&A optionality or dividend support without stressing liquidity in industry slowdowns.

Positive free cash flow coverage of earnings

Despite year-over-year FCF decline, the fact that free cash flow still covers a large portion of net income is a constructive sign of earnings quality and cash conversion. This supports sustainable shareholder returns, content funding and gradual balance sheet de-risking over the medium term.

Negative Factors

Weakening operating profitability

A sharp drop in gross and EBIT margins signals deteriorating core operating economics and raises questions about the sustainability of earnings from media operations. If core margins remain depressed, the company will face pressure funding content and competing on streaming economics without relying on non‑operating boosts.

Material decline in cash flow momentum

A substantial year-over-year drop in operating and free cash flow reduces financial flexibility. Lower cash generation constrains capital allocation for content, technology or M&A, and increases reliance on balance sheet or external financing if the decline persists, weakening resilience to industry disruption.

Flat to slightly declining revenue trend

Stagnant or modestly declining top-line growth limits the company’s ability to scale fixed-cost content investments and dilute operating leverage. Without steady revenue expansion from streaming or international distribution, margin recovery and long‑term earnings growth will be harder to achieve.

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 primarily generates revenue from three main areas: (1) Advertising sales: The largest and most traditional source is selling advertising inventory across its free-to-air TV channels and radio stations. Revenue is driven by audience reach/ratings, advertising market conditions, pricing (CPM/GRP), and the mix of national vs. regional/local ad sales. The company also monetizes digital video advertising through its broadcaster video-on-demand and streaming services (e.g., ad-supported tiers, addressable/targeted advertising where applicable). (2) Streaming and digital revenue: RTL earns money from subscription fees and/or platform revenues tied to its streaming services in various markets, which may include subscription video-on-demand, hybrid models (subscription plus advertising), and transactional offerings where present. Digital monetization can include paid subscriptions, advertising, and distribution deals (e.g., carriage or platform arrangements), depending on the market and product. (3) Content production, distribution, and rights: Through its production operations, RTL produces scripted and unscripted programming and earns fees from commissions for its own channels and for third-party broadcasters and streaming platforms. It also monetizes intellectual property by distributing finished programs and formats internationally, licensing remake rights, and generating ancillary revenues tied to content rights (e.g., international sales). Additional contributors can include revenue from TV channel distribution/carriage agreements with cable/satellite/IPTV operators and other commercial partnerships, as well as other media-related services; if specific partnership terms or market-by-market breakdowns are not publicly available, they are not detailed here.

RTL Group SA Financial Statement Overview

Summary

Balance sheet is a clear strength (low and improving leverage; solid ROE), but operating performance weakened in 2025 (very low gross margin and lower EBIT margin) and cash flow momentum deteriorated (FCF down ~38%), reducing earnings durability despite strong net margin.

Income Statement

Revenue has been broadly flat to slightly down over the last few years (2025: -2.35%), and profitability has been volatile. 2025 shows an unusually low gross margin (2.6%) and weaker operating profitability (EBIT margin 4.3% vs ~9.8–13.1% in 2022–2024), but net margin is high (16.3%) versus prior years—suggesting earnings were helped by non-operating items rather than core operations. Overall, the business remains profitable, but the recent mix of weaker operating margins and soft revenue trend lowers quality and predictability of earnings.

Balance Sheet

Leverage looks manageable with debt-to-equity improving to 0.24 in 2025 (from 0.33 in 2024) and equity building to €4.7B. Returns on equity are solid and improved in 2025 (20.8% vs 10.7% in 2024), indicating good profitability relative to the capital base. The main watch item is that returns have been variable year-to-year, but overall the balance sheet appears conservatively positioned for a broadcaster.

Cash Flow

Cash generation remains positive, but momentum weakened materially in 2025: operating cash flow fell to €520M (from €761M) and free cash flow declined to €410M (down 38.2%). Free cash flow still covers a large portion of net income (about 79%), which is a constructive sign for earnings quality, but the year-over-year drop in cash flow reduces flexibility and raises questions about near-term cash conversion stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.16B	6.02B	6.25B	6.23B	6.59B	6.64B
Gross Profit	3.38B	155.00M	3.51B	3.34B	3.79B	4.10B
EBITDA	760.50M	582.00M	932.00M	849.00M	1.09B	2.13B
Net Income	359.00M	979.00M	460.00M	467.00M	673.00M	1.30B
Balance Sheet
Total Assets	9.70B	10.49B	10.23B	9.67B	10.13B	10.49B
Cash, Cash Equivalents and Short-Term Investments	368.00M	457.00M	594.00M	761.00M	754.00M	840.00M
Total Debt	1.73B	1.11B	1.43B	1.24B	1.07B	1.02B
Total Liabilities	4.99B	4.97B	5.04B	4.57B	4.92B	5.22B
Stockholders Equity	3.89B	4.70B	4.31B	4.25B	4.42B	4.54B
Cash Flow
Free Cash Flow	663.00M	410.00M	587.00M	360.00M	262.00M	737.00M
Operating Cash Flow	777.00M	520.00M	761.00M	537.00M	463.00M	932.00M
Investing Cash Flow	-43.00M	308.00M	-122.00M	26.00M	658.00M	-114.00M
Financing Cash Flow	-804.00M	-951.00M	-637.00M	-578.00M	-1.09B	-759.00M

RTL Group SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RRTL, the sentiment is Negative. The current price of 34.6 is below the 20-day moving average (MA) of 35.98, below the 50-day MA of 36.36, and below the 200-day MA of 34.83, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 39.75 is Neutral, neither overbought nor oversold. The STOCH value of 36.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	€3.08B	12.76	18.18%	6.73%	-0.62%	16.87%
RRTL	71 Outperform	€5.35B	5.42	8.76%	6.31%	2.77%	-31.49%
KA8	66 Neutral	€15.15M	-7.86	29.87%	4.87%	-0.74%	31.08%
1U1	62 Neutral	€4.06B	26.36	2.07%	0.21%	-0.46%	-50.77%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
UTDI	56 Neutral	€5.12B	16.79	2.80%	7.04%	-2.19%	―
PSM	45 Neutral	€873.05M	4.21	-0.48%	1.03%	-4.06%	82.42%