ReWorld Media SA (ALREW) AI Stock Analysis

• Market Cap: €88.19M
• Dividend Yield: 1.26%
• Average Volume (3M): 56.40K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.88
• Revenue Growth: -3.53%
• EPS Growth: 28.87%
• Country: FR
• Employees: 1,356
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.15
• Shares Outstanding: 60,039,660
• 10 Day Avg. Volume: 63,953
• 30 Day Avg. Volume: 56,395
• PEG Ratio: -0.95
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 3.38
• 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: €3.40
• Price Target Upside: 93.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): €452.39M

• Rating: 71 Outperform
• Price Target: €2.00 ▲(13.64% Upside)

ReWorld Media SA's stock score is primarily driven by its strong valuation, with a notably low P/E ratio indicating potential undervaluation. Financial performance is stable, with consistent revenue growth and sound profitability margins. Technical analysis suggests neutral momentum, with some indicators pointing to potential short-term overbought conditions.

Positive Factors

Revenue Model Diversification

A diversified revenue model reduces dependency on a single income stream, enhancing financial stability and resilience against market fluctuations.

Profitability Margins

Strong gross margins indicate efficient cost management, which supports sustainable profitability and competitive pricing strategies.

Equity Position

A robust equity position provides financial flexibility and stability, enabling strategic investments and growth opportunities without excessive leverage.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in market demand or competitive pressures, potentially impacting long-term growth prospects if not addressed.

Net Profit Margin Decline

Decreasing net profit margins suggest rising operational costs or inefficiencies, which could erode profitability if not managed effectively.

Free Cash Flow Volatility

Volatile free cash flow can hinder the company's ability to fund operations and investments consistently, affecting long-term financial planning.

ReWorld Media SA Business Overview & Revenue Model

Company Description

ReWorld Media SA (ALREW) is a dynamic media and digital content company based in Switzerland, specializing in the creation and distribution of multimedia content across various platforms. The company operates within the digital marketing and media sectors, focusing on leveraging innovative technologies to enhance audience engagement and deliver targeted advertising solutions. ReWorld Media's core products and services include digital publishing, video content production, and data-driven marketing strategies aimed at maximizing client visibility and reach.

How the Company Makes Money

ReWorld Media generates revenue primarily through a diversified model that includes advertising sales, subscription services, and content licensing. The company monetizes its digital platforms by selling advertising space to various brands and businesses looking to reach specific demographics. Additionally, ReWorld Media offers subscription-based services that provide exclusive content to users, creating a steady stream of recurring revenue. Licensing agreements for their proprietary content and partnerships with other media outlets further contribute to their earnings, allowing them to expand their reach and influence in the competitive media landscape.

ReWorld Media SA Financial Statement Overview

Summary

ReWorld Media SA exhibits stable financial health with consistent revenue growth and sound profitability margins. The balance sheet reflects a strong equity position with manageable debt levels, and the cash flow statements indicate effective cash management despite some variability. Areas for improvement include maintaining net profit margins and enhancing free cash flow consistency.

Income Statement

ReWorld Media SA shows a consistent revenue increase over the years, with a recent dip of 2.65% in 2024 compared to 2023. The company maintains a healthy gross profit margin, averaging around 50% in recent years, indicating efficient cost management. However, the net profit margin has slightly declined from previous highs, suggesting rising operational costs or other expenses. The EBIT and EBITDA margins remain stable, reflecting consistent operational performance.

Balance Sheet

The debt-to-equity ratio is moderate, reflecting a balanced approach to leveraging debt for growth. The company's equity ratio indicates a solid equity base, although it slightly fluctuated over the years. Return on equity has been strong, consistently providing good returns on shareholders' investments, although it has shown slight decrease recently. Overall, the balance sheet portrays robustness with manageable debt levels and steady equity growth.

Cash Flow

ReWorld Media SA demonstrates a positive trend in operating cash flows, though the free cash flow growth experienced volatility. The operating cash flow to net income ratio suggests efficient conversion of income to cash, while the free cash flow to net income ratio indicates sound cash generation despite some fluctuations. The company has managed capital expenditures effectively, maintaining a positive cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	527.70M	534.72M	549.27M	505.84M	469.84M	424.65M
Gross Profit	44.11M	326.73M	55.53M	63.04M	315.47M	280.89M
EBITDA	51.25M	60.49M	58.47M	66.09M	64.63M	22.30M
Net Income	26.97M	23.29M	24.20M	42.99M	38.69M	12.76M
Balance Sheet
Total Assets	613.77M	638.55M	664.19M	639.92M	510.01M	467.54M
Cash, Cash Equivalents and Short-Term Investments	68.55M	86.97M	97.71M	106.12M	122.91M	104.11M
Total Debt	175.23M	188.37M	205.83M	407.57M	151.47M	128.37M
Total Liabilities	375.91M	405.37M	445.27M	461.52M	360.60M	354.52M
Stockholders Equity	217.21M	212.77M	201.72M	176.28M	135.10M	102.08M
Cash Flow
Free Cash Flow	21.29M	30.27M	11.38M	19.83M	28.54M	21.88M
Operating Cash Flow	28.69M	38.83M	21.58M	25.08M	35.29M	28.83M
Investing Cash Flow	-15.22M	-12.31M	-20.09M	-90.15M	-26.22M	-9.58M
Financing Cash Flow	-13.86M	-25.29M	-22.14M	55.94M	10.01M	31.82M

ReWorld Media SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALREW, the sentiment is Positive. The current price of 1.76 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.63, and above the 200-day MA of 1.63, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 55.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALREW.

ReWorld Media SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCO	79 Outperform	€76.62M	14.38	4.71%	5.04%	-21.70%	-49.75%
ALREW	71 Outperform	€88.19M	3.57	12.60%	1.26%	-3.53%	28.87%
ALBLD	65 Neutral	€79.07M	15.55	―	―	21.20%	13.12%
ALHOP	61 Neutral	€40.14M	11.03	―	5.04%	11.03%	-37.78%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LOCAL	52 Neutral	€55.38M	0.46	―	―	-0.78%	―