Damartex SA (ALDAR) AI Stock Analysis

• Market Cap: €25.57M
• Dividend Yield: N/A
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -1.50%
• EPS Growth: 49.82%
• Country: FR
• Employees: 2,535
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.13
• 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): -0.54
• Revenue Forecast (FY): €529.10M

• Rating: 44 Neutral
• Price Target: €2.00 ▼(-39.39% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by weak financial performance (recurring net losses and rising leverage with declining equity). Technicals add further pressure with a pronounced downtrend and negative momentum. Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Cash generation resilience

Consistent positive operating and free cash flow across 2023–2025 shows the business still converts sales into cash despite accounting losses. That cash generation provides short- to medium-term liquidity to fund operations, service debt or invest in digital channels, cushioning the franchise while restructuring or margin recovery occurs.

Direct-to-consumer brand & channels

A strong DTC model and recognized Damart brand give durable control over pricing, customer data and fulfillment. Owning e-commerce and catalog channels reduces dependency on wholesale, supports repeat purchase programs and marketing efficiency, enabling sustainable margins and customer retention over the medium term.

Revenue diversification via senior services (Santéol)

Having a services arm focused on senior care diversifies revenue away from apparel and inventory risk. Services tend to generate fee-based, recurring revenues and could be less cyclical than retail. This structural diversification can stabilize cash flow and margins as the company balances product sales and service revenues.

Negative Factors

Persistent net losses

Recurring net losses over multiple years erode retained earnings and limit the firm's ability to self-fund investments or cover shocks. Persistent losses indicate structural profitability issues—whether pricing, cost base, or mix—that must be resolved to restore long-term financial health and investor confidence.

Rising leverage and shrinking equity

Elevated and rising debt alongside falling equity materially increases financial risk and reduces flexibility. Higher leverage raises interest and covenant pressure, limiting capacity for strategic investments or marketing to drive growth. It also increases refinancing risk if profitability and cash flow do not recover.

Revenue decline and uneven recovery

A multi-year revenue contraction followed by only a modest rebound signals fragile demand or competitive pressure. Without sustained top-line recovery, achieving durable operating leverage and margin expansion will be challenging; revenue volatility also complicates forecasting and long-term planning for inventory and service capacity.

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 makes money primarily through (1) sales of consumer products—mainly apparel and textile items—marketed under its brands (notably Damart). Revenue is recognized when customers purchase these goods via the company’s direct-to-consumer channels, especially online, with additional sales historically supported by distance-selling mechanisms such as catalogs. This stream generates earnings through the margin between product selling prices and the total cost to source/produce, market, distribute, and fulfill orders (including warehousing, shipping, returns processing, and customer service). (2) Service revenue from its senior services activities (Santéol), where the company earns fees for providing services aimed at older adults. The level of earnings in this segment depends on service volumes and the cost base required to deliver them (staffing, operations, and related overhead). Overall profitability is influenced by factors typical for direct-to-consumer retail (customer acquisition/retention spend, pricing and promotional intensity, inventory management and markdowns, and returns) as well as the operational efficiency and utilization rates of its services activities.

Damartex SA Financial Statement Overview

Summary

Profitability is the main drag: net margins were negative from 2022–2025 and 2025 still posted a sizeable net loss (~€17.7M). The balance sheet adds risk with higher debt (~€281M in 2025 vs ~€224M in 2024) and shrinking equity (~€70.5M vs ~€90.7M). Cash flow is a partial offset (positive operating and free cash flow in 2023–2025), but free cash flow fell sharply in 2025 (~-56%).

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: Neutral
• STOCH: Neutral

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 2.59, above the 50-day MA of 2.85, and below the 200-day MA of 3.64, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 36.39 is Neutral, neither overbought nor oversold. The STOCH value of 32.35 is Neutral, 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	€417.42M	29.90	1.30%	―	1.78%	―
ALDAR	44 Neutral	€25.57M	-5.54	―	―	-1.50%	49.82%