Xilam Animation SA (ALXIL) AI Stock Analysis

• Market Cap: €22.93M
• Dividend Yield: N/A
• Average Volume (3M): 17.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -51.43%
• EPS Growth: -990.51%
• Country: FR
• Employees: 194
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.44
• Shares Outstanding: 5,893,799
• 10 Day Avg. Volume: 11,700
• 30 Day Avg. Volume: 17,029
• PEG Ratio: <0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 3.07
• 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): -0.75
• Revenue Forecast (FY): €15.70M

• Rating: 55 Neutral
• Price Target: €4.00 ▲(11.73% Upside)

The overall stock score is primarily influenced by the company's financial difficulties, including declining revenues and negative profitability. Technical analysis provides some positive momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh on the score.

Positive Factors

Established IP portfolio and franchises

Xilam’s recognizable franchises and back catalog create durable content assets that generate recurring licensing, syndication and merchandising revenue. Established characters reduce reliance on new hits and support long-term monetization with broadcasters, streamers and consumer products.

Multiple revenue streams (licensing, merchandising, co-productions)

A diversified monetization model—licensing, merchandising and co-productions—spreads revenue risk and lowers capital intensity per project. Co-productions share development costs and extend distribution reach, improving resilience to single-market or single-platform disruptions over the medium term.

Conservative leverage and capital structure

Low debt levels and a solid equity ratio provide financial flexibility to fund production cycles or absorb episodic losses without heavy refinancing. This conservative capital structure supports medium-term investment in content and strategic partnerships while limiting insolvency risk.

Negative Factors

Sharp revenue decline and deeply negative margins

Significant top-line contraction combined with gross and net margins well below zero indicate structural cost and pricing mismatches. If margins remain negative, the business cannot self-fund content production or marketing, undermining long-term competitiveness and franchise investment.

Severe deterioration in free cash flow

A 77% drop in free cash flow and weak conversion of earnings into free cash constrain the company’s ability to finance new productions, pursue merchandising or pay down obligations. Persistent FCF weakness forces external financing or cuts to content investment, harming long-term growth.

Negative return on equity

A materially negative ROE signals that shareholder capital is being eroded rather than generating returns. Over time this undermines investor confidence and makes it harder to raise growth capital on favorable terms, limiting the company’s ability to scale content output and international distribution.

Xilam Animation SA Business Overview & Revenue Model

Company Description

Xilam Animation, an integrated animation studio, creates, produces, and distributes original programs for children and adults in France, rest of Europe, the Americas, Asia, and Africa. The company produces animated series and feature films. Its content is broadcast on television; subscription video on demand streaming platforms, including Netflix, Disney+, and Amazon; and advertising video on demand streaming platforms, such as YouTube and Facebook. The company also operates an online shop. Xilam Animation was incorporated in 1999 and is headquartered in Paris, France.

How the Company Makes Money

Xilam Animation SA generates revenue through multiple streams, primarily from the production and distribution of animated content. The company earns income by licensing its television shows and films to broadcasters and streaming platforms worldwide. Additionally, Xilam benefits from merchandising opportunities related to its popular characters and franchises, creating products that appeal to its audience. The company also engages in co-production agreements with other studios, allowing for shared investment and distribution of animated projects. Significant partnerships with international distributors and content platforms further enhance its earning potential, enabling Xilam to reach a global audience and maximize its revenue from both traditional and digital media.

Xilam Animation SA Financial Statement Overview

Summary

Xilam Animation SA is facing financial difficulties with declining revenues and negative profitability margins. The balance sheet shows low leverage but poor profitability, and cash flow challenges limit financial flexibility.

Income Statement

Xilam Animation SA has faced significant challenges in its income statement. The company experienced a sharp decline in revenue by 29.18% in the most recent year, coupled with negative margins across the board, including a gross profit margin of -134.61% and a net profit margin of -113.70%. This indicates substantial operational inefficiencies and cost management issues. Historically, the company has shown fluctuating revenue growth rates, but the recent downturn is concerning.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.19, indicating conservative leverage. However, the return on equity is negative at -53.68%, reflecting poor profitability and potential risks in generating returns for shareholders. The equity ratio stands at 53.82%, suggesting a stable capital structure, but the negative ROE highlights underlying profitability issues.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth by 77.30%, which is a major concern. The operating cash flow to net income ratio is 0.65, indicating some level of cash generation efficiency, but the free cash flow to net income ratio of 0.44 suggests challenges in converting earnings into free cash flow. The company's cash flow position is under pressure, impacting its ability to fund operations and growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.49M	39.73M	35.71M	26.92M	18.82M
Gross Profit	-31.62M	1.23M	3.03M	-2.41M	1.30M
EBITDA	14.15M	23.07M	22.07M	34.08M	14.42M
Net Income	-25.57M	5.20M	1.47M	6.33M	2.56M
Balance Sheet
Total Assets	92.44M	138.21M	154.74M	147.60M	130.52M
Cash, Cash Equivalents and Short-Term Investments	7.43M	8.27M	13.65M	10.14M	10.28M
Total Debt	9.56M	21.29M	38.44M	36.58M	27.67M
Total Liabilities	41.04M	64.14M	85.26M	80.01M	69.83M
Stockholders Equity	49.75M	71.30M	66.35M	64.36M	57.98M
Cash Flow
Free Cash Flow	7.59M	11.69M	5.89M	-6.94M	-579.00K
Operating Cash Flow	17.18M	31.73M	31.13M	24.90M	23.36M
Investing Cash Flow	-9.25M	-19.12M	-24.59M	-31.29M	-24.79M
Financing Cash Flow	-8.82M	-17.64M	-2.80M	6.21M	-8.45M

Xilam Animation SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALXIL, the sentiment is Positive. The current price of 3.58 is below the 20-day moving average (MA) of 3.75, below the 50-day MA of 3.88, and above the 200-day MA of 3.23, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 68.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALXIL.

Xilam Animation SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALREW	73 Outperform	€95.86M	3.88	12.60%	1.29%	-3.53%	28.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ALXIL	55 Neutral	€22.93M	-0.83	-44.88%	―	-51.43%	-990.51%
DEEZR	53 Neutral	€145.05M	-10.00	―	―	4.14%	64.46%
GAM	51 Neutral	€314.64M	-24.52	-6.82%	―	-31.54%	-53.98%
ALECP	45 Neutral	€53.89M	-29.23	―	―	1.83%	54.76%
VANTI	42 Neutral	€56.19M	-0.14	―	―	-15.63%	-67.81%