Damartex SA (ALDAR) AI Stock Analysis

• Market Cap: €27.79M
• Dividend Yield: N/A
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -1.50%
• EPS Growth: 49.82%
• Country: FR
• Employees: 2,535
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -1.20
• Shares Outstanding: 11,598,300
• 10 Day Avg. Volume: 4,906
• 30 Day Avg. Volume: 2,128
• PEG Ratio: 0.06
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 3.51
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.39
• Revenue Forecast (FY): €529.10M

• Rating: 43 Neutral
• Price Target: €2.50 ▼(-24.24% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven mainly by weak financial performance (ongoing losses and rising leverage with shrinking equity) and bearish technical signals (price below key moving averages and negative MACD). Positive cash generation provides some support, but declining 2025 free cash flow and a negative P/E with no dividend data keep the overall score low.

Positive Factors

Direct-to-consumer model & brand

A strong DTC model with an established Damart brand gives the company control over customer data, pricing and margins while reducing reliance on wholesale. Over 2–6 months this supports more stable unit economics, repeat sales, and targeted marketing efficiencies versus intermediated retail.

Diversified services (Santéol)

Santéol provides recurring, fee-based services less tied to fashion cycles, offering revenue diversification. Structural aging demographics in France support sustained demand, improving revenue mix resilience and lowering overall business volatility versus pure apparel exposure.

Positive cash generation history

Consistent operating and free cash flow across recent years shows the business can convert sales into cash despite accounting losses. This durable cash generation supports working capital, servicing debt or targeted reinvestment and provides a buffer during turnaround efforts.

Negative Factors

Rising leverage and shrinking equity

Elevated and increasing debt alongside shrinking equity materially reduces financial flexibility. Over the medium term this raises refinancing, covenant and interest-rate risks, constrains investment capacity, and increases the probability management must prioritize deleveraging over growth initiatives.

Recurring losses and weak margins

Sustained net losses and inconsistent operating profitability indicate structural margin pressures. If persistent, they erode shareholder equity, limit internal funding for growth, and force reliance on external capital or cost cuts, reducing optionality and long-term competitiveness.

Declining and volatile free cash flow

A steep FCF decline and prior volatility undermine the company's ability to sustain investment, pay down debt, or absorb shocks. Over several months this elevates refinancing risk and may force asset disposals or tighter liquidity management, complicating any recovery plan.

Damartex SA Business Overview & Revenue Model

Company Description

Damartex offers clothing and accessories for seniors primarily in France, the Great-Britain, Belgium, and Germany. It operates in three divisions: Fashion, Home & Lifestyle, and Healthcare. It offers its fashion products under the Damart, Afibel, La Maison du Jersey, and Xandres brands; home and lifestyle products under the 3Pagen, Vitrine Magique, Coopers of Stortford, Jours Heureux, and Delaby brands; and healthcare products under the Sedagyl and Santéol brands. Damartex markets its products through catalogs, stores, and Websites. The company was formerly known as Damart SA and changed its name to Damartex in 2002. Damartex was founded in 1953 and is headquartered in Roubaix, France. Damartex is a subsidiary of JPJ-D.

How the Company Makes Money

Damartex SA generates revenue primarily through the sale of apparel, accessories, and home products. The company's key revenue streams include direct-to-consumer sales via its retail outlets and e-commerce platforms, as well as through catalog sales. Damartex's business model capitalizes on its strong brand portfolio, targeting the senior market with tailored products that fulfill their specific lifestyle needs. The company also benefits from strategic partnerships and marketing initiatives that enhance brand visibility and drive consumer engagement. Additionally, Damartex may leverage its supply chain efficiencies and product innovation to optimize profit margins and sustain its competitive position in the market.

Damartex SA Financial Statement Overview

Summary

Weak overall fundamentals: recurring net losses and inconsistent operating profitability, plus elevated and worsening leverage as debt rose while equity declined. Positive operating/free cash flow in 2023–2025 is a key offset, but free cash flow dropped sharply in 2025, adding risk.

Income Statement

Performance has been pressured by weak profitability despite relatively stable revenue. Annual revenue declined sharply from 2021 to 2023, then stabilized (2024 down ~10%) and modestly rebounded in 2025 (+6.8%). However, earnings remain loss-making: net margins were negative from 2022–2025 (about -0.8% to -6.6%), with 2025 still posting a sizeable net loss (~€17.7M). Operating profitability is also inconsistent—2024 showed meaningful operating losses, and 2025 only a near break-even operating result while EBITDA turned slightly negative, indicating limited operating leverage and ongoing cost/price pressure.

Balance Sheet

Leverage is elevated and trending worse, while equity has been shrinking. Total debt increased to ~€281M in 2025 from ~€224M in 2024, while shareholders’ equity fell to ~€70.5M from ~€90.7M, reducing financial flexibility. Where available, debt relative to equity is high (about 1.8x–2.5x in 2023–2024), and returns to shareholders have been negative for multiple years, reflecting ongoing losses. Total assets have drifted lower since 2022, suggesting limited balance-sheet growth and potential pressure to preserve liquidity if profitability does not improve.

Cash Flow

Cash generation is a relative bright spot, though momentum weakened. Operating cash flow has been positive in most years (strong in 2021 and positive again in 2023–2025), and free cash flow remained positive in 2023–2025, indicating the business can still generate cash despite accounting losses. That said, free cash flow fell sharply in 2025 (down ~56%), and prior years show volatility (2022 had negative operating and free cash flow). Overall, cash flow resilience helps offset earnings weakness, but the declining 2025 cash generation raises caution.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	521.20M	529.18M	587.46M	718.98M	764.16M
Gross Profit	0.00	337.15M	-19.77M	-8.94M	20.50M
EBITDA	-400.00K	1.69M	10.04M	35.27M	55.27M
Net Income	-17.70M	-35.04M	-32.76M	-5.79M	16.24M
Balance Sheet
Total Assets	422.61M	454.76M	509.26M	513.43M	497.00M
Cash, Cash Equivalents and Short-Term Investments	15.56M	38.05M	51.16M	14.13M	60.63M
Total Debt	281.04M	224.12M	208.81M	138.35M	116.41M
Total Liabilities	352.63M	364.82M	393.22M	356.24M	339.46M
Stockholders Equity	70.51M	90.67M	115.80M	157.09M	157.50M
Cash Flow
Free Cash Flow	14.38M	20.98M	9.45M	-33.91M	50.64M
Operating Cash Flow	20.32M	30.21M	13.49M	-17.55M	59.82M
Investing Cash Flow	-15.42M	-6.39M	-22.42M	-26.75M	-8.46M
Financing Cash Flow	62.46M	15.21M	-25.07M	-23.23M	16.41M

Damartex SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALDAR, the sentiment is Negative. The current price of 3.3 is above the 20-day moving average (MA) of 2.72, above the 50-day MA of 3.01, and below the 200-day MA of 3.70, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 28.32 is Positive, neither overbought nor oversold. The STOCH value of 7.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALDAR.

Damartex SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SMCP	56 Neutral	€463.54M	29.90	1.30%	―	1.78%	―
ALDAR	43 Neutral	€27.79M	-2.85	―	―	-1.50%	49.82%