Believe SA (BLV) AI Stock Analysis

• Market Cap: €1.73B
• Dividend Yield: N/A
• Average Volume (3M): 41.77K
• Price to Earnings (P/E): 2500.0
• Beta (1Y): 0.38
• Revenue Growth: 12.33%
• EPS Growth: 46.47%
• Country: FR
• Employees: 1,951
• Sector: Communication Services
• Sector Strength: 83
• Industry: Specialty Retail
• EPS (TTM): -0.03
• Shares Outstanding: 100,703,740
• 10 Day Avg. Volume: 98,578
• 30 Day Avg. Volume: 41,775
• PEG Ratio: -6.18
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 93.92
• 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: €15.30
• Price Target Upside: -11.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: €18.50 ▲(7.56%Upside)

The stock of Believe SA scores a 68, driven primarily by strong technical momentum and improved financial performance, despite profitability challenges. The negative P/E ratio significantly impacts valuation, and the overbought RSI suggests caution. The absence of earnings call and corporate events data did not affect the score.

Believe SA Business Overview & Revenue Model

Company Description

Believe SA (BLV) is a global digital music company that operates in the music industry, offering a comprehensive suite of services to artists and labels. The company focuses on digital distribution, marketing, and promotion of music across various platforms. Believe SA aims to empower independent artists and labels by providing them with the necessary tools and resources to succeed in the digital music landscape.

How the Company Makes Money

Believe SA makes money primarily through revenue-sharing agreements with artists and labels, where it distributes music to streaming platforms and digital stores, collecting a share of the income generated from plays and downloads. The company offers a range of services including digital marketing, brand partnerships, and monetization strategies, which also contribute to its revenue. Additionally, Believe SA benefits from strategic partnerships with major streaming platforms and digital service providers, enhancing its ability to distribute and promote music globally.

Believe SA Financial Statement Overview

Summary

Believe SA has demonstrated solid revenue growth and improved cash flow management, with a positive trajectory towards stabilizing operations. Despite reduced losses and strong liquidity, challenges remain in achieving profitability, necessitating enhanced margins and cost efficiency.

Income Statement

Believe SA has demonstrated solid revenue growth with a noticeable increase from €441.4M in 2020 to €988.8M in 2024, reflecting a robust expansion. The gross profit margin has remained fairly stable, hovering around 27%, indicating consistent cost management. However, the persistent negative EBIT and net income, despite improvements, highlight ongoing profitability challenges. The transition from a net loss of €26.3M in 2020 to a lower loss of €3.05M in 2024 suggests progress but also underscores the need for further improvement to achieve profitability.

Balance Sheet

The balance sheet shows a healthy equity base with stockholders' equity rising to €359.3M in 2024, reflecting financial stability. The debt-to-equity ratio is low, indicating conservative leverage which mitigates financial risk. However, the equity ratio has slightly decreased over time, indicating a gradual increase in reliance on liabilities. The company's cash position remains strong, bolstering liquidity, yet asset growth has been accompanied by a proportional increase in liabilities, which could pose future risks if not managed carefully.

Cash Flow

Cash flow performance has improved significantly, with operating cash flow increasing from negative €4.07M in 2020 to positive €21.9M in 2024, signifying enhanced cash generation capability. Free cash flow has turned positive, reflecting better capital expenditure management. The free cash flow to net income ratio indicates efficient conversion of earnings into cash flow, despite net losses. Sustained positive cash flows improve financial flexibility, yet the company should aim for profitability to strengthen overall cash flow stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	988.83M	880.31M	760.80M	577.15M	441.42M
Gross Profit	267.25M	227.71M	195.88M	157.96M	133.52M
EBITDA	40.26M	55.48M	31.41M	8.29M	8.21M
Net Income	-3.05M	-5.48M	-24.97M	-28.64M	-26.29M
Balance Sheet
Total Assets	1.17B	1.11B	1.00B	912.84M	659.97M
Cash, Cash Equivalents and Short-Term Investments	143.83M	215.57M	304.29M	262.73M	152.33M
Total Debt	39.99M	31.86M	32.72M	34.13M	128.30M
Total Liabilities	811.38M	727.84M	619.98M	507.74M	508.44M
Stockholders Equity	359.31M	370.77M	375.91M	402.16M	144.92M
Cash Flow
Free Cash Flow	-21.12M	-36.51M	48.20M	-34.37M	-38.73M
Operating Cash Flow	21.93M	12.71M	73.66M	-7.67M	-4.07M
Investing Cash Flow	-70.98M	-86.89M	-38.29M	-74.27M	-54.33M
Financing Cash Flow	-36.19M	-5.04M	-2.60M	190.80M	53.60M

Believe SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:BLV, the sentiment is Positive. The current price of 17.2 is above the 20-day moving average (MA) of 17.16, above the 50-day MA of 16.49, and above the 200-day MA of 15.14, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 78.72 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:BLV.

Believe SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNAC	72 Outperform	€994.84M	26.94	2.16%	4.32%	4.81%	-28.59%
ALVU	71 Outperform	€134.80M	18.16		2.70%	8.59%	-22.37%
BLV	68 Neutral	€1.73B	2,500.00	-0.84%	―	12.33%	46.47%
Sector *	62 Neutral	€3.44B	-0.91	3.90%	8.53%	5.62%	-157.00%
SRP	42 Neutral	€57.83M	―	-21.71%	―	-4.53%	-9785.71%