Deezer SA (DEEZR) AI Stock Analysis

• Market Cap: €145.48M
• Dividend Yield: N/A
• Average Volume (3M): 10.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: 4.14%
• EPS Growth: 64.46%
• Country: FR
• Employees: 552
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.06
• Shares Outstanding: 119,229,430
• 10 Day Avg. Volume: 8,457
• 30 Day Avg. Volume: 10,555
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €1.00
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: €1.00 ▼(-15.25% Downside)

The overall stock score is primarily influenced by financial performance challenges, including negative equity and profitability issues. Technical analysis indicates a bearish trend, and valuation metrics are weak due to negative earnings. These factors collectively suggest a cautious outlook for the stock.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Deezer's ability to expand its user base and enhance its market position, supporting long-term business sustainability.

Cash Flow Improvement

Improved cash flow management enhances Deezer's financial flexibility, allowing for reinvestment in growth initiatives and potential debt reduction.

Operational Improvements

Enhancements in operational efficiency can lead to better cost management and profitability, contributing to long-term financial health.

Negative Factors

Negative Equity

Negative equity suggests that liabilities exceed assets, posing a risk to Deezer's financial stability and limiting its ability to secure favorable financing.

Profitability Challenges

Ongoing profitability issues can hinder Deezer's ability to generate sustainable earnings, affecting its capacity to invest in growth and innovation.

High Liabilities

Rising liabilities can strain Deezer's cash flow and limit its financial flexibility, potentially impacting its ability to invest in strategic initiatives.

Deezer SA Business Overview & Revenue Model

Company Description

Deezer S.A. provides music streaming services worldwide. The company streams songs, audio books, podcast, and radio channels. It offers its music steaming services through website, Deezer.com and other wireless audio systems; and operates in approximately 180 countries. The company is based in Paris, France.

How the Company Makes Money

Deezer generates revenue primarily through its subscription-based model and advertising services. The company offers a premium subscription service, Deezer Premium, which provides users with an ad-free experience, offline listening, and high-quality audio streaming. Subscription fees from this service constitute a significant portion of Deezer's revenue. Additionally, Deezer offers a free, ad-supported version of its platform, where revenue is earned through advertisements displayed to non-paying users. Significant partnerships with telecommunications companies and other digital service providers also contribute to Deezer's revenue by bundling its services with other offerings or through direct integrations. These partnerships help expand Deezer's reach and attract new subscribers, further driving revenue growth.

Deezer SA Financial Statement Overview

Summary

Deezer SA shows revenue growth and improved cash flow, but struggles with profitability and financial stability due to negative equity and high liabilities. Operational improvements are evident, but focus on reducing liabilities is crucial.

Income Statement

The company has shown a steady increase in total revenue over the years, with a notable revenue growth rate of 11.77% from 2023 to 2024. However, profitability remains a challenge, as indicated by negative EBIT and net profit margins in 2024, despite improvements from the previous year. The gross profit margin increased slightly to 22.81% in 2024, reflecting some operational improvements.

Balance Sheet

The balance sheet reveals high leverage with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be reliably calculated due to negative equity, but the overall trajectory shows increasing liabilities. The equity ratio is negative, reflecting that liabilities exceed assets, which poses a risk to financial stability.

Cash Flow

Cash flow statements show a positive trend with significant improvement in operating cash flow in 2024. The company achieved a positive free cash flow in 2024, indicating better cash management. However, the free cash flow to net income ratio is not meaningful due to negative net income, though the improved cash flow suggests potential for future profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	541.72M	484.66M	451.20M	400.02M	379.19M
Gross Profit	123.57M	110.23M	65.10M	48.53M	61.66M
EBITDA	-13.56M	-41.41M	-155.28M	-108.75M	-84.61M
Net Income	-25.89M	-57.67M	-167.70M	-123.26M	-95.36M
Balance Sheet
Total Assets	184.14M	195.00M	234.06M	134.48M	152.97M
Cash, Cash Equivalents and Short-Term Investments	62.06M	63.60M	113.61M	35.10M	52.44M
Total Debt	32.11M	40.56M	23.89M	26.89M	28.45M
Total Liabilities	425.60M	420.98M	415.88M	351.81M	284.17M
Stockholders Equity	-241.46M	-226.92M	-184.69M	-217.33M	-131.20M
Cash Flow
Free Cash Flow	13.66M	-42.09M	-51.83M	-33.69M	-15.68M
Operating Cash Flow	15.48M	-39.99M	-48.78M	-31.64M	-8.93M
Investing Cash Flow	-3.63M	-1.98M	279.08M	-9.63M	-2.88M
Financing Cash Flow	-11.48M	-8.43M	-152.50M	23.83M	-8.10M

Deezer SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:DEEZR, the sentiment is Negative. The current price of 1.18 is below the 20-day moving average (MA) of 1.19, below the 50-day MA of 1.21, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 28.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:DEEZR.

Deezer SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$47.40B	4.51	-11.27%	4.14%	2.83%	-41.62%
DEEZR	46 Neutral	€145.48M	―		―	4.14%	64.46%
0MGL	―	€1.64B	11.09	11.94%	―	―	―
0IXL	―	€566.35M	21.43	4.56%	―	―	―
0MV8	―	€64.62M	―		―	―	―
0NQT	―	€1.84B	9.79	9.58%	―	―	―
8T6	―	€1.73B	2,453.33	-0.84%	―	―	―