Believe SA (BLV) AI Stock Analysis

• Market Cap: €1.55B
• Dividend Yield: N/A
• Average Volume (3M): 5.89K
• Price to Earnings (P/E): 2500.0
• Beta (1Y): 0.42
• Revenue Growth: 12.33%
• EPS Growth: 46.47%
• Country: FR
• Employees: 1,951
• Sector: Communication Services
• Sector Strength: 81
• Industry: Specialty Retail
• EPS (TTM): -0.03
• Shares Outstanding: 100,703,740
• 10 Day Avg. Volume: 1,960
• 30 Day Avg. Volume: 5,888
• PEG Ratio: -5.53
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 83.91
• 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: -0.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Believe SA's strong revenue growth and improved cash flow management are significant strengths, providing a positive outlook for future stabilization. However, ongoing challenges in profitability, as indicated by the negative P/E ratio, and the absence of profitability metrics, weigh on the valuation. The technical analysis is moderately positive, suggesting some upward potential. The lack of earnings call and corporate event insights limits additional context for the stock. Overall, the stock presents a moderate investment opportunity, with potential for improvement if profitability can be achieved.

Believe SA Business Overview & Revenue Model

Company Description

Believe SA (BLV) is a global digital music company specializing in providing artists and labels with a full suite of services to enhance their digital presence. Operating primarily in the music and entertainment sectors, Believe offers services such as music distribution, artist marketing, and label development, enabling creators to effectively reach audiences worldwide through various digital platforms.

How the Company Makes Money

Believe SA generates revenue through multiple streams, primarily centered around its digital distribution and artist service offerings. The company charges fees for distributing music across major streaming platforms like Spotify, Apple Music, and Amazon Music. Additionally, Believe offers premium services for marketing and promotional support, which artists and labels can purchase to enhance their visibility and audience engagement. Strategic partnerships with major digital platforms and a focus on expanding their service offerings also contribute significantly to Believe's earnings. The company employs a revenue-sharing model with artists and labels, further diversifying its income sources.

Believe SA Financial Statement Overview

Summary

Believe SA has shown commendable revenue growth and improved cash flow management, indicating a positive trajectory towards stabilizing operations. While the company has managed to reduce losses and maintain a strong liquidity position, it still faces challenges in achieving profitability. Conservative leverage and a strong equity base provide a solid financial foundation, yet continued focus on enhancing margins and cost efficiency is essential for long-term success.

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
	EBIT
-2.12M	-18.07M	-10.55M	-23.75M	-16.48M
	EBITDA
40.26M	55.48M	31.41M	8.29M	8.21M
	Net Income Common Stockholders
-3.05M	-5.48M	-24.97M	-28.64M	-26.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
143.83M	215.57M	304.29M	262.73M	152.33M
	Total Assets
1.17B	1.11B	1.00B	912.84M	659.97M
	Total Debt
39.99M	31.86M	32.72M	34.13M	128.30M
	Net Debt
-99.80M	-182.36M	-270.63M	-227.88M	-24.03M
	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: 15.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.38 is above the 20-day moving average (MA) of 15.21, above the 50-day MA of 15.08, and above the 200-day MA of 14.67, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 63.68 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
TFI	77 Outperform	€1.73B	9.07	9.43%	7.30%	1.53%	-1.60%
NRG	77 Outperform	€574.09M	13.68	5.90%	4.66%	1.14%	-7.09%
PUB	76 Outperform	€22.75B	13.83	15.92%	3.70%	8.30%	26.51%
VIV	67 Neutral	€2.73B	7.22	2.26%	1.46%	57.79%	―
LNA	66 Neutral	€245.92M	11.15	7.12%	2.55%	9.58%	-6.69%
BLV	65 Neutral	€1.55B	2,500.00	-0.84%	―	12.33%	46.47%
Sector *	60 Neutral	$13.44B	7.15	-2.73%	3.79%	2.11%	-39.64%