Cirsa Enterprises, S.A.U. (CIRSA) AI Stock Analysis

• Market Cap: €2.47B
• Dividend Yield: N/A
• Average Volume (3M): 117.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: ES
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): 0.16
• Shares Outstanding: 167,992,660
• 10 Day Avg. Volume: 100,688
• 30 Day Avg. Volume: 117,240
• PEG Ratio: -2.30
• Price to Book (P/B): 32.40
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 5.90
• 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: €19.00
• Price Target Upside: 29.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €15.00 ▲(2.04% Upside)

The score is held back primarily by balance-sheet risk and earnings volatility (very high leverage and a sharp 2024 net income decline), partly offset by strong operating cash flow and positive technical momentum. Valuation impact is limited due to missing P/E and dividend yield data.

Positive Factors

Strong operating cash flow

Consistently strong operating and free cash flow provide durable internal funding for capex, payouts, and debt servicing. That persistent cash generation supports operational resilience and strategic flexibility even if reported earnings swing year-to-year.

Sustained revenue growth

Multi-year top-line growth indicates expanding customer activity and successful commercial execution across land-based and digital channels. Persistent revenue expansion underpins scale advantages, predictable cash flow potential, and long-term market relevance.

Stable operating margins

Relatively steady EBITDA and healthy EBIT margins show the core gaming and venue business maintains pricing power and cost control. Margin durability supports sustained cash generation and buffers the company against cyclical revenue fluctuations.

Negative Factors

Extremely high leverage

A very small equity base and rising debt leave the capital structure highly stretched, raising refinancing, covenant and solvency risks. Structural leverage limits strategic optionality, increases interest exposure and magnifies downside in adverse operating or rate environments.

Sharp net income decline

A pronounced collapse in reported profit despite stable operating margins signals material non-operating pressures (interest, one-offs or taxes). Persistent bottom-line volatility undermines earnings reliability and heightens sensitivity to financing costs over the medium term.

Variable cash conversion / coverage risk

Although free cash flow is strong in absolute terms, inconsistent cash conversion and coverage below 1x reduce the predictability of cash available to service debt. This structural variability elevates liquidity risk and complicates long-term debt reduction plans.

Cirsa Enterprises, S.A.U. Business Overview & Revenue Model

Company Description

Cirsa Enterprises, S.A. is a gaming company, together with its subsidiaries, engages in the operation of slot machines, casinos, and gaming halls in Spain, Italy, Panama, Colombia, Mexico, Costa Rica, Morocco, Dominican Republic, and Peru. The company also designs, manufactures, and markets slot machines; and operates gaming tables, betting locations, arcades, and casinos, as well as develops interactive gaming mechanisms and systems. In addition, it offers online gaming and sports betting products through outlets and betting machines. additionally, the company operate slot machines in bars, cafes, and restaurants across Spain and Italy. Cirsa Enterprises, S.A. was founded in 1978 and is based in Terrassa, Spain. Cirsa Enterprises, S.A. operates as a subsidiary of LHMC Midco S.à r.l.

How the Company Makes Money

Cirsa Enterprises, S.A.U. Financial Statement Overview

Summary

Operating performance and cash generation are solid (revenue growth, stable EBITDA margins, strong free cash flow), but the sharp drop in 2024 net income and an extremely stretched balance sheet (very high leverage with a thin equity base) materially increase financial risk.

Income Statement

Revenue has grown strongly from 2022 to 2024 (from ~€1.70B to ~€2.15B), and operating profitability is solid and fairly stable with EBITDA margins holding around ~32% and EBIT margins in the mid-teens. However, bottom-line performance deteriorated sharply in 2024: net income fell to ~€12.6M from ~€80.0M in 2023, driving net margin down to ~0.6% (vs ~4.0% in 2023). The result is a business that looks healthy at the operating level but shows meaningful volatility and weakness in reported earnings.

Balance Sheet

Leverage is the key concern. Total debt is high and rising (about €2.68B in 2024 vs €2.46B in 2023), while equity shrank materially to ~€75.7M in 2024 (from ~€322.6M in 2023), pushing debt-to-equity to an extremely elevated level (~35x). While returns on equity appear high, the very small equity base amplifies that figure and increases financial risk. Overall, the capital structure looks stretched and leaves limited balance-sheet cushion.

Cash Flow

Cash generation is a clear strength. Operating cash flow has increased over the period (roughly €514M in 2022 to ~€607M in 2024), and free cash flow is consistently strong (about €416M in 2024). Cash flow also holds up well relative to accounting earnings, especially in 2024 when net income dropped but free cash flow remained robust. A watch-out is that cash flow coverage is not consistently above 1x (it dipped below 1x in 2022 and is just under 1x in 2024), suggesting some variability in cash conversion year to year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.61B	2.15B	1.99B	1.70B	798.09M	537.47M
Gross Profit	1.96B	1.20B	1.08B	928.04M	34.17M	-194.27M
EBITDA	1.20B	685.69M	631.61M	545.23M	320.03M	154.47M
Net Income	3.29M	12.63M	80.03M	56.57M	-150.87M	-254.64M
Balance Sheet
Total Assets	3.74B	3.74B	3.57B	3.34B	3.26B	3.37B
Cash, Cash Equivalents and Short-Term Investments	379.62M	287.18M	271.89M	237.63M	280.20M	283.27M
Total Debt	2.14B	2.68B	2.46B	2.46B	2.84B	2.79B
Total Liabilities	2.98B	3.54B	3.14B	3.05B	3.14B	3.11B
Stockholders Equity	648.29M	75.71M	322.63M	108.37M	25.35M	155.07M
Cash Flow
Free Cash Flow	773.59M	415.88M	377.68M	369.22M	109.84M	-35.48M
Operating Cash Flow	1.05B	607.36M	544.43M	513.70M	169.67M	42.90M
Investing Cash Flow	-407.44M	-286.06M	-224.18M	-219.28M	-135.49M	-118.29M
Financing Cash Flow	-63.89M	-314.97M	-283.65M	-361.62M	-36.42M	205.74M

Cirsa Enterprises, S.A.U. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEL	72 Outperform	€1.70B	9.61	23.93%	1.84%	3.31%	44.82%
A3M	69 Neutral	€1.17B	10.30	14.87%	12.71%	-3.21%	-36.23%
CIRSA	57 Neutral	€2.47B	―	10.75%	―	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
CASH	53 Neutral	€931.92M	10.54	41.93%	7.10%	―	―
PSG	52 Neutral	€1.51B	13.55	14.39%	4.98%	10.40%	62.70%