JCDecaux SA (DEC) AI Stock Analysis

• Market Cap: €4.15B
• Dividend Yield: 3.6%
• Average Volume (3M): 110.91K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.90
• Revenue Growth: 5.80%
• EPS Growth: -9.84%
• Country: FR
• Employees: 11,434
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.87
• Shares Outstanding: 214,128,660
• 10 Day Avg. Volume: 114,254
• 30 Day Avg. Volume: 110,914
• PEG Ratio: 7.61
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 3.77
• 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: €23.40
• Price Target Upside: 17.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.39
• Revenue Forecast (FY): €4.05B

• Rating: 66 Neutral
• Price Target: €20.50 ▲(2.81% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily driven by solid cash generation and improved profitability, offset by high leverage and some signs of slowing top-line/earnings momentum. Technicals are supportive with the stock trading above key moving averages, and valuation (P/E ~10.9 with ~2.9% yield) adds a modest सकारात्मक tailwind.

Positive Factors

Cash generation

Consistent operating and free cash flow over multiple years shows durable cash conversion and internal funding ability. This supports reinvestment in digital inventory, dividend coverage and debt service, providing a stable financial foundation across business cycles.

Improved profitability

A sustained turnaround from loss to multi-year profitability and margin expansion indicates structural cost control and pricing recovery. Durable margins enhance resilience to revenue swings and improve long-term free cash flow generation and stakeholder returns.

Market position & contract model

Leadership in outdoor advertising and long-term municipal/transport contracts create durable revenue visibility and high-traffic assets. Scale and exclusive city partnerships are structural advantages that sustain pricing power and competitive barriers to entry.

Negative Factors

Elevated leverage

A high absolute debt load limits financial flexibility for capex, M&A or downturns. With leverage around 2x equity, interest and refinancing needs constrain strategic options and increase vulnerability if advertising revenues weaken.

Recent revenue/momentum weakness

A sharp revenue deceleration and flat EBIT signal cooled demand and potential volatility in core ad sales. If sustained, weaker top-line momentum can pressure margins, cash flow coverage and the ability to deleverage over the medium term.

Cyclicality of ad market exposure

Exposure to the cyclical advertising market makes earnings and cash flow variable across economic cycles. Combined with elevated debt, cyclicality increases downside risk during ad slowdowns and complicates capital allocation across cycles.

JCDecaux SA Business Overview & Revenue Model

Company Description

JCDecaux SA engages in the outdoor advertising activities worldwide. It operates through three segments: Street Furniture, Transport, and Billboard. The Street Furniture segment is involved in advertising in shopping malls; renting of street furniture; selling and renting of equipment; and the provision of cleaning, maintenance, and other activities. The Transport segment provides advertising services in public transport systems, such as airports, metros, buses, tramways, and trains. The Billboard segment is involved in advertising on private property, including traditional large format or back-light billboards; and the provision of neon-light billboards and advertising wraps. The company was founded in 1964 and is based in Neuilly-sur-Seine, France. JCDecaux SA is a subsidiary of JCDecaux Holding SAS.

How the Company Makes Money

JCDecaux generates revenue primarily through advertising contracts with municipalities, transport authorities, and private businesses. Its key revenue streams include leasing advertising space on street furniture such as bus shelters, kiosks, and public toilets, as well as digital advertising screens in high-traffic areas. The company earns money by charging advertisers for the right to display their ads on these platforms, often through long-term contracts that ensure consistent income. Additionally, JCDecaux has formed significant partnerships with cities and transport networks to expand its advertising reach, creating a symbiotic relationship where the company enhances public spaces while securing lucrative advertising contracts. The growth of digital advertising also contributes to its earnings, as clients increasingly seek dynamic and interactive advertising solutions.

JCDecaux SA Financial Statement Overview

Summary

Strong and consistent operating/free cash flow with improved profitability versus 2020–2021 supports the score, but elevated leverage (debt around ~2x equity) and signs of cooling momentum in the latest period (flat EBIT and sharply negative annual revenue growth shown for 2025) meaningfully cap it.

Income Statement

Revenue recovered strongly from 2020–2024 (2024 up ~10% and 2023 up ~7%), while profitability improved materially from losses in 2020–2021 to positive net income in 2022–2025. Margins also expanded versus the COVID trough (net margin ~7% in 2024). However, the latest annual revenue growth in 2025 is shown as sharply negative, and EBIT in 2025 is essentially flat versus 2024—suggesting momentum has cooled and results may be more volatile than the prior recovery period.

Balance Sheet

Leverage remains elevated, with debt running at roughly ~2.0x equity in 2024 (and higher in prior years), which reduces financial flexibility for a cyclical advertising-driven business. A positive offset is steady improvement in the capital structure trend: total debt has come down meaningfully from 2022–2023 peaks while equity has edged up, supporting a healthier trajectory. Still, the balance sheet remains a key risk factor given the absolute debt load.

Cash Flow

Cash generation is a consistent strength: operating cash flow has stayed around ~€0.9–€1.2B across 2020–2025, and free cash flow remained solid each year (about €0.67–€0.88B). Free cash flow growth improved in 2024 and accelerated further in 2025, indicating good conversion and disciplined investment needs. The main drawback is that cash flow coverage of debt appears modest (where provided), which matters given the company’s leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.67B	3.63B	3.30B	3.07B	2.52B
Gross Profit	1.17B	1.95B	1.83B	818.50M	551.00M
EBITDA	1.24B	1.36B	1.31B	1.34B	1.15B
Net Income	262.70M	258.90M	209.20M	132.10M	-14.50M
Balance Sheet
Total Assets	8.14B	8.62B	9.26B	10.06B	9.50B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.36B	1.69B	1.97B	1.56B
Total Debt	4.04B	4.45B	5.46B	6.43B	6.21B
Total Liabilities	5.78B	6.30B	7.21B	8.26B	7.85B
Stockholders Equity	2.24B	2.20B	1.95B	1.76B	1.62B
Cash Flow
Free Cash Flow	878.20M	811.30M	728.50M	748.40M	832.80M
Operating Cash Flow	1.18B	1.13B	1.10B	1.10B	1.00B
Investing Cash Flow	-294.60M	-252.30M	-338.30M	-423.20M	-172.70M
Financing Cash Flow	-835.10M	-1.22B	-1.05B	-274.50M	-931.80M

JCDecaux SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.94
• 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:DEC, the sentiment is Positive. The current price of 19.94 is above the 20-day moving average (MA) of 17.73, above the 50-day MA of 17.07, and above the 200-day MA of 15.63, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 69.80 is Neutral, neither overbought nor oversold. The STOCH value of 86.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:DEC.

JCDecaux SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALREW	73 Outperform	€84.00M	2.65	12.60%	1.29%	-3.53%	28.87%
PUB	71 Outperform	€17.68B	13.46	17.51%	4.10%	9.88%	16.84%
DEC	66 Neutral	€4.15B	12.59	11.30%	3.60%	5.80%	-9.84%
ALDUX	65 Neutral	€9.67M	4.49	216.14%	―	-0.08%	23.11%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LOCAL	52 Neutral	€69.22M	10.47	―	―	-0.78%	―
ALINV	49 Neutral	€3.39M	-0.36	―	―	-13.31%	-375.69%