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ABC Arbitrage SA (FR:ABCA)
:ABCA
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ABC Arbitrage (ABCA) AI Stock Analysis

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FR:ABCA

ABC Arbitrage

(LSE:ABCA)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
€6.50
▲(16.28% Upside)
ABC Arbitrage's strong financial performance and attractive valuation are offset by bearish technical indicators. The company's robust balance sheet and high dividend yield are significant strengths, but the declining revenue trend and negative market momentum present risks.

ABC Arbitrage (ABCA) vs. iShares MSCI France ETF (EWQ)

ABC Arbitrage Business Overview & Revenue Model

Company DescriptionABC arbitrage SA, together with its subsidiaries, develops arbitrage strategies for liquid assets worldwide. It develops liquidity, statistical, risk, and derivatives arbitrage strategies; and provides asset and portfolio management services. The company was incorporated in 1995 and is based in Paris, France.
How the Company Makes MoneyABC Arbitrage generates revenue primarily through its trading activities, where it profits from the differences in prices of financial instruments across different markets. The company employs a quantitative trading strategy that involves high-frequency trading and market making, allowing it to earn small margins on large volumes of trades. Additionally, ABC Arbitrage may earn fees from providing liquidity to other market participants and potentially from partnerships with financial institutions that seek to utilize its trading expertise. The company's earnings are significantly influenced by market volatility and liquidity, with higher trading volumes typically leading to increased revenue.

ABC Arbitrage Financial Statement Overview

Summary
ABC Arbitrage exhibits strong financial health with high profitability and low leverage. Despite a declining revenue trend, the firm maintains robust margins and a solid balance sheet. Cash flow management is effective, supporting operational requirements and strategic investments.
Income Statement
75
Positive
ABC Arbitrage has demonstrated strong net profit margins and consistent profitability over the years, with a net profit margin of 52.2% in 2024. However, there has been a noticeable decline in revenue over the recent periods, with a revenue growth rate of -16.0% from 2022 to 2023 and a further drop to 2024. EBIT and EBITDA margins are unavailable for 2024, which raises concerns about operational efficiency.
Balance Sheet
82
Very Positive
The company's balance sheet is robust, with zero debt in 2024, resulting in an excellent debt-to-equity ratio. The equity ratio is also strong at 92.0%, and the return on equity (ROE) is impressive at 16.4% for 2024, indicating effective use of equity to generate profits. Overall, ABC Arbitrage maintains a stable financial position with low leverage.
Cash Flow
78
Positive
ABC Arbitrage's cash flow is healthy, characterized by positive free cash flow and an operating cash flow to net income ratio of 0.79 in 2024. However, the free cash flow growth rate has stagnated due to relatively stable operating cash flows. The company effectively manages its investments and financing activities, ensuring steady cash flow generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue65.13M51.41M39.81M61.44M64.34M69.11M
Gross Profit27.10M48.54M19.02M45.92M50.00M51.26M
EBITDA31.75M-882.00K18.39M30.85M37.11M37.09M
Net Income35.66M26.84M16.48M29.15M28.04M35.09M
Balance Sheet
Total Assets190.36M178.36M172.11M187.33M185.20M173.06M
Cash, Cash Equivalents and Short-Term Investments173.00M161.39M156.95M168.40M152.24M159.09M
Total Debt3.33M4.04M4.84M5.70M5.39M1.15M
Total Liabilities15.93M14.23M16.70M25.67M25.18M19.03M
Stockholders Equity174.43M164.13M155.41M161.66M160.02M154.03M
Cash Flow
Free Cash Flow0.0021.11M19.98M24.40M34.05M24.33M
Operating Cash Flow24.96M21.11M19.98M24.40M34.05M24.33M
Investing Cash Flow-840.00K-1.20M-2.06M-890.00K-707.00K-1.03M
Financing Cash Flow-20.89M-19.40M-22.93M-27.54M-23.86M-22.32M

ABC Arbitrage Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5.59
Price Trends
50DMA
5.77
Negative
100DMA
5.96
Negative
200DMA
5.63
Negative
Market Momentum
MACD
-0.08
Negative
RSI
46.29
Neutral
STOCH
55.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ABCA, the sentiment is Neutral. The current price of 5.59 is below the 20-day moving average (MA) of 5.59, below the 50-day MA of 5.77, and below the 200-day MA of 5.63, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 55.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ABCA.

ABC Arbitrage Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
€328.17M9.2521.46%4.32%53.67%116.00%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
€3.50B11.68-2.85%5.98%9.86%-118.70%
61
Neutral
€3.19B17.555.94%4.33%12.44%12.15%
50
Neutral
€108.06M110.55-0.09%3.17%-27.33%-87.37%
49
Neutral
€4.27B-8.86%4.38%11.76%-735.88%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:ABCA
ABC Arbitrage
5.59
1.23
28.15%
FR:RF
Eurazeo
58.30
-13.28
-18.55%
FR:IDIP
Institut de Developpement Industriel SA IDI
73.00
8.42
13.04%
FR:MF
Wendel SE
78.60
-10.78
-12.06%
FR:TKO
Tikehau Capital SCA
18.46
-3.72
-16.75%
FR:ALBON
Compagnie Lebon SA
94.60
-0.17
-0.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 03, 2025