Deezer SA (DEEZR) AI Stock Analysis

• Market Cap: €123.81M
• Dividend Yield: N/A
• Average Volume (3M): 10.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• 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: 12,821
• 30 Day Avg. Volume: 10,954
• PEG Ratio: 0.11
• Price to Book (P/B): -0.68
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 11.97
• 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: €1.30
• Price Target Upside: 27.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: €1.00 ▼(-1.96% Downside)

Deezer SA's stock score is primarily influenced by its financial performance, which shows revenue growth and cash flow improvements but is hindered by profitability challenges and balance sheet instability. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful business strategies, enhancing long-term viability and competitiveness.

Cash Flow Improvement

Improved cash flow suggests better financial management and potential for reinvestment in growth initiatives, supporting future profitability.

Gross Profit Margin Increase

An increase in gross profit margin indicates enhanced operational efficiency, which can lead to better profitability and competitive positioning.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder long-term financial health and limit the company's ability to invest in growth and innovation.

Balance Sheet Instability

A weak balance sheet with negative equity poses risks to financial stability, affecting the company's ability to withstand economic downturns.

High Liabilities

Rising liabilities can strain cash flow and reduce financial flexibility, potentially impacting the company's long-term 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 primarily generates revenue through its subscription model, offering tiered plans that include a free, ad-supported version and premium subscriptions that provide ad-free listening, offline access, and higher audio quality. The key revenue streams consist of monthly subscription fees from individual users and family plans. Additionally, Deezer earns revenue from partnerships with telecommunications companies and device manufacturers, which often bundle Deezer's service with their offerings. Advertising revenue from the free tier also contributes to the company's earnings, allowing brands to reach a diverse audience through targeted ads.

Deezer SA Financial Statement Overview

Summary

Deezer SA shows revenue growth and improved cash flow, but struggles with profitability and balance sheet stability. Negative equity and high liabilities are concerning, despite operational improvements.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	540.85M	541.72M	484.66M	451.20M	400.02M	379.19M
Gross Profit	133.94M	123.57M	75.11M	65.10M	48.53M	61.66M
EBITDA	-1.63M	-13.56M	-41.41M	-155.28M	-108.75M	-84.61M
Net Income	-14.18M	-25.89M	-57.67M	-167.70M	-123.26M	-95.36M
Balance Sheet
Total Assets	180.93M	184.14M	195.00M	234.06M	134.48M	152.97M
Cash, Cash Equivalents and Short-Term Investments	59.80M	62.06M	63.60M	113.61M	35.10M	52.44M
Total Debt	26.21M	32.11M	40.56M	49.35M	26.89M	28.45M
Total Liabilities	429.71M	425.60M	420.98M	415.88M	351.81M	284.17M
Stockholders Equity	-248.78M	-241.46M	-226.92M	-184.69M	-217.33M	-131.20M
Cash Flow
Free Cash Flow	5.57M	13.66M	-42.09M	-51.83M	-33.69M	-15.68M
Operating Cash Flow	6.58M	15.48M	-39.99M	-48.78M	-31.64M	-8.93M
Investing Cash Flow	-792.00K	-3.63M	-1.98M	279.08M	-9.63M	-2.88M
Financing Cash Flow	-10.91M	-10.62M	-8.43M	-152.50M	23.83M	-8.10M

Deezer SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.02 is above the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.06, and below the 200-day MA of 1.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 42.59 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
NRG	75 Outperform	€625.16M	23.65	4.56%	3.57%	-9.30%	-47.10%
MMT	69 Neutral	€1.49B	10.10	11.94%	10.06%	-4.71%	-31.54%
TFI	68 Neutral	€1.65B	8.76	9.15%	7.31%	1.00%	-7.89%
BLV	68 Neutral	―	―	―	―	12.33%	46.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DEEZR	53 Neutral	€123.81M	-8.70	―	―	4.14%	64.46%
VANTI	38 Underperform	€48.64M	-0.12	―	―	-15.63%	-67.81%