Europacorp (ALECP) AI Stock Analysis

• Market Cap: €55.65M
• Dividend Yield: N/A
• Average Volume (3M): 27.47K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• Revenue Growth: -11.49%
• EPS Growth: -700.00%
• Country: FR
• Employees: 28
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Entertainment
• EPS (TTM): 0.00
• Shares Outstanding: 125,420,006
• 10 Day Avg. Volume: 60,814
• 30 Day Avg. Volume: 27,466
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 49 Neutral
• Price Target: ―

Europacorp's overall stock score is impacted by declining revenues and high leverage, which present significant financial risks. Despite some profitability improvements, the company's weak cash flow management and negative valuation metrics further weigh on the score. Technical analysis suggests mixed signals, with no strong upward momentum.

Europacorp Business Overview & Revenue Model

Company Description

Europacorp (ALECP) is a French motion picture company specializing in the production, distribution, and international sales of films. Established by Luc Besson in 1999, the company is known for producing high-quality films with global appeal, often in the action and thriller genres. Europacorp's operations span various sectors of the film industry, including development, production, distribution, and sales, with a focus on creating commercial films for a broad international audience.

How the Company Makes Money

Europacorp generates revenue through multiple streams, primarily from the production and distribution of films. The company earns money by selling distribution rights to its films in various international markets, both for theatrical releases and home entertainment, such as DVDs, Blu-rays, and digital platforms. Additionally, Europacorp benefits from television licensing deals, where it sells broadcast rights to networks and streaming services. Partnerships and co-productions with other film studios and distributors also play a significant role in its revenue generation, allowing for shared resources and expanded market reach. Furthermore, Europacorp generates income from merchandising and ancillary rights related to its film properties.

Europacorp Financial Statement Overview

Summary

Europacorp faces challenges with declining revenues and significant leverage, offset by some improvements in profitability margins. The balance sheet shows high leverage, posing financial risk, while cash flow management is strained with recent negative free cash flow. The company needs to focus on revenue growth and strengthening its equity base to enhance financial stability.

Income Statement

The company's revenue has shown a declining trend from 2020 to 2024, with the latest annual revenue at €35.3 million, a decrease from €69.8 million in 2020. Gross profit margins have been fluctuating, with the most recent at 35.16%. Net profit margin improved to 2.43% in 2024 from a near-zero margin in 2023, indicating better cost management. However, the EBIT margin decreased significantly to 3.40% in 2024 from 10.34% in 2023, highlighting operational challenges. EBITDA margin was strong at 60.26% in 2024. Overall, while there are signs of profitability improvement, the declining revenue raises concerns.

Balance Sheet

The company has a high debt-to-equity ratio, due to low equity levels, indicating significant leverage risk with a total debt of €75.1 million against equity of €2.79 million in 2024. The equity ratio is low, demonstrating reliance on debt for asset financing. However, the company improved its equity position from negative values in earlier years. Return on equity is exceptionally volatile due to low equity base, creating a potential risk for investors.

Cash Flow

Free cash flow turned negative in 2024, marking a decline from the positive €5.47 million in 2023, primarily due to increased capital expenditures. The operating cash flow to net income ratio is strong, suggesting effective cash generation relative to net earnings. However, the negative free cash flow to net income ratio reflects challenges in managing capital investments. Overall cash flow management needs improvement to ensure sustainability.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	35.33M	37.49M	35.29M	41.49M	69.77M
Gross Profit	12.42M	17.27M	18.90M	18.94M	21.44M
EBITDA	21.29M	18.80M	36.05M	158.09M	-23.83M
Net Income	857.00K	58.00K	16.65M	122.61M	-95.05M
Balance Sheet
Total Assets	113.20M	121.97M	130.20M	140.76M	193.00M
Cash, Cash Equivalents and Short-Term Investments	46.31M	55.69M	60.57M	46.95M	50.68M
Total Debt	75.10M	82.21M	94.47M	100.41M	218.05M
Total Liabilities	109.97M	120.80M	129.73M	158.10M	388.84M
Stockholders Equity	2.79M	780.00K	87.00K	-17.68M	-196.14M
Cash Flow
Free Cash Flow	-4.94M	5.47M	17.70M	2.38M	31.33M
Operating Cash Flow	18.43M	15.16M	20.20M	2.88M	31.33M
Investing Cash Flow	-21.07M	-8.97M	2.25M	1.59M	150.00K
Financing Cash Flow	-4.88M	-11.08M	-8.82M	-4.75M	-4.14M

Europacorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALECP, the sentiment is Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.46, and above the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 52.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALECP.

Europacorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFI	75 Outperform	€1.77B	9.44	9.58%	7.14%	-0.32%	0.64%
VIV	66 Neutral	€3.19B	8.42	2.26%	1.24%	―	―
PUB	64 Neutral	€19.97B	11.69	17.51%	4.52%	9.88%	16.84%
Sector *	57 Neutral	HK$24.69B	3.68	-2.17%	6.03%	-0.25%	-65.84%
ALECP	49 Neutral	€55.65M	―		―	-11.49%	-700.00%
ALHRS	38 Underperform	€48.49M	―	-18.79%	―	-39.69%	-117.32%

Europacorp Corporate Events

Europacorp’s Liquidity Contract Shows Increased Activity

Europacorp’s liquidity contract with NATIXIS ODDO BHF showed notable activity between July and December 2024, with a significant increase in shares and transaction volumes. This period saw 462 purchase transactions and 441 sales, indicating active management and liquidity in its shares, which may influence stakeholder confidence and market perception.