HighCo SA (HCO) AI Stock Analysis

• Market Cap: €69.84M
• Dividend Yield: 26.95%
• Average Volume (3M): 31.98K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.36
• Revenue Growth: 0.64%
• EPS Growth: -32.05%
• Country: FR
• Employees: 450
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Advertising Agencies
• EPS (TTM): 0.38
• Shares Outstanding: 20,455,402
• 10 Day Avg. Volume: 25,760
• 30 Day Avg. Volume: 31,979
• PEG Ratio: -0.42
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.84
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: €4.00 ▲(5.26%Upside)

HighCo SA achieves a strong overall score due to its solid financial performance and attractive valuation metrics. The company's robust cash flow and low leverage support its financial stability. Technical indicators also show positive momentum, reinforcing the positive outlook.

HighCo SA Business Overview & Revenue Model

Company Description

High Co. SA provides marketing solutions to various retailers and brands worldwide. The company offers brand platform, communication strategy, social media engagement, and media strategy services; and service design services, SMS and push notifications, mobile apps and websites, and loyalty programs. It also provides data collection and analysis, targeting and personalization drivers, predictive algorithms, and GDPR compliant technologies; and promotion mechanics, multi-channel distribution, logistics and merchandising, and operational management and coupon clearing services. High Co. SA was founded in 1990 and is headquartered in Aix-en-Provence, France.

How the Company Makes Money

HighCo SA generates revenue through a combination of service fees and project-based contracts with its clients. The company offers a suite of marketing and advertising services that cater to businesses seeking to improve their market presence and consumer engagement. Key revenue streams include promotional marketing campaigns, digital advertising services, data analytics solutions, and strategic consulting. HighCo SA collaborates with various clients across different industries, and their earnings are significantly bolstered by long-term partnerships with established brands looking for specialized marketing expertise. Additionally, the company capitalizes on the growing demand for digital transformation in marketing by providing cutting-edge digital solutions that drive more efficient and effective consumer interactions.

HighCo SA Financial Statement Overview

Summary

HighCo SA has a stable financial position with strong cash flow, a robust balance sheet characterized by low leverage, and consistent profitability. Revenue growth is limited, but overall financial health is solid with opportunities for enhanced profitability.

Income Statement

HighCo SA's income statement reflects a stable revenue base with consistent gross and net profit margins. The gross profit margin stands at 39.37% for 2024, indicating efficient cost management, while the net profit margin at 5.10% suggests moderate profitability. Revenue growth is marginal at 0.64% from 2023 to 2024, pointing to stability but limited expansion. The EBIT margin of 7.34% and EBITDA margin of 13.14% highlight a solid operating performance. Overall, the company maintains a steady financial performance with room for improvement in scalability and profitability.

Balance Sheet

HighCo SA's balance sheet is robust with a healthy equity position. The debt-to-equity ratio is low at 0.07, indicating minimal leverage and thus a low-risk financial structure. With an equity ratio of 44.98%, the company has a strong equity base relative to its total assets. Return on Equity (ROE) is modest at 8.02%, reflecting reasonable returns for shareholders. Overall, the company exhibits financial stability and a strong balance sheet with low leverage, though there is potential to enhance shareholder returns.

Cash Flow

The cash flow statement reveals strong cash generation capabilities. Free cash flow grew significantly by 122.09% from 2023 to 2024, underscoring effective cash management and operational efficiency. The operating cash flow to net income ratio is 3.30, indicating robust cash conversion. With a free cash flow to net income ratio of 3.23, the company demonstrates strong cash generation relative to its net earnings. Overall, HighCo SA's cash flow position is strong, reflecting excellent liquidity and operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
146.38M	145.44M	146.36M	137.45M	136.45M
	Gross Profit
57.64M	24.61M	60.23M	67.15M	63.01M
	EBIT
10.75M	15.85M	7.76M	17.28M	12.18M
	EBITDA
18.90M	21.38M	13.25M	24.96M	19.68M
	Net Income Common Stockholders
7.46M	11.12M	3.28M	11.19M	7.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.69M	66.13M	70.00M	73.72M	111.64M
	Total Assets
206.82M	203.79M	214.75M	218.65M	263.62M
	Total Debt
6.10M	12.56M	15.04M	15.88M	53.45M
	Net Debt
-74.59M	-53.58M	-54.97M	-57.84M	-58.18M
	Total Liabilities
111.92M	111.94M	123.48M	119.69M	167.97M
	Stockholders Equity
93.03M	89.86M	89.15M	96.56M	92.06M
Cash Flow		Free Cash Flow
24.10M	10.85M	9.81M	9.68M	16.47M
	Operating Cash Flow
24.60M	12.78M	10.96M	10.74M	19.42M
	Investing Cash Flow
-712.00K	-1.87M	-1.32M	-986.00K	-2.22M
	Financing Cash Flow
-9.32M	-14.78M	-13.36M	-47.67M	24.60M

HighCo SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:HCO, the sentiment is Positive. The current price of 3.8 is above the 20-day moving average (MA) of 3.50, above the 50-day MA of 3.19, and above the 200-day MA of 2.62, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 52.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:HCO.

HighCo SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCO	80 Outperform	€69.84M	9.79	8.47%	26.95%	0.64%	-32.05%
Sector *	65 Neutral	$8.73B	15.10	4.69%	4.08%	3.64%	-2.90%
0RC1		€34.11M	―		―	―	―
6H1		€78.11M	3.40	11.59%	―	―	―
ALBLD	74 Outperform	€101.43M	22.55		―	2.64%	58.49%
ALHOP		€52.02M	10.35		3.76%	―	―
ALISP		€33.06M	―		―	―	―

HighCo SA Corporate Events

HighCo Announces Voting Rights and Share Structure Update

HighCo’s latest declaration reveals the number of shares composing its capital and their associated voting rights as of January 31, 2025. This information is crucial for stakeholders, providing transparency on the company’s share structure and voting rights, which may impact investor decisions and corporate governance.