HighCo SA (HCO) AI Stock Analysis

• Market Cap: €76.05M
• Dividend Yield: 6.13%
• Average Volume (3M): 48.28K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.47
• Revenue Growth: -21.70%
• EPS Growth: -49.75%
• Country: FR
• Employees: 450
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.23
• Shares Outstanding: 20,455,402
• 10 Day Avg. Volume: 48,419
• 30 Day Avg. Volume: 48,278
• PEG Ratio: -0.21
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 2.05
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: €4.50 ▲(11.39% Upside)

HighCo SA demonstrates strong financial performance with excellent cash flow and a robust balance sheet. The stock is technically sound with positive momentum and is attractively valued with a high dividend yield. These factors contribute to a favorable overall stock score.

HighCo SA Business Overview & Revenue Model

Company Description

HighCo SA (HCO) is a leading European marketing services company specializing in promotional marketing and digital solutions. Operating primarily in the retail and consumer goods sectors, HighCo provides a range of services including promotional campaigns, digital marketing, in-store promotions, and customer engagement strategies. The company focuses on enhancing brand visibility and consumer interactions through innovative marketing solutions, catering to a diverse clientele that includes major retail chains and consumer product manufacturers.

How the Company Makes Money

HighCo generates revenue through multiple streams, primarily from its marketing services, which include the planning and execution of promotional campaigns for brands and retailers. The company earns fees for creating and managing these campaigns, often structured as project-based fees or retainer arrangements. Additionally, HighCo benefits from its digital solutions, offering data analytics and customer engagement tools that help brands optimize their marketing strategies. Key revenue streams also include partnerships with retailers and manufacturers, enabling HighCo to leverage its network for cross-promotional opportunities. The company's ability to adapt to market trends and invest in technology further enhances its earning potential.

HighCo SA Financial Statement Overview

Summary

HighCo SA exhibits solid financial health with stable revenue and profitability, a robust balance sheet with low leverage, and outstanding cash flow performance. The company demonstrates strong liquidity and operational efficiency, indicating a strong financial position with opportunities for growth and 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	114.38M	146.38M	145.44M	144.57M	137.45M	136.45M
Gross Profit	11.38M	57.64M	24.61M	20.76M	67.15M	63.01M
EBITDA	11.11M	18.90M	21.38M	13.25M	24.96M	19.68M
Net Income	5.56M	7.46M	11.12M	1.79M	11.19M	4.27M
Balance Sheet
Total Assets	186.05M	206.82M	203.79M	214.75M	218.65M	263.62M
Cash, Cash Equivalents and Short-Term Investments	93.97M	80.69M	66.13M	70.00M	73.72M	111.64M
Total Debt	5.00M	6.10M	12.56M	15.04M	15.88M	53.45M
Total Liabilities	93.19M	111.92M	111.94M	123.48M	119.69M	167.97M
Stockholders Equity	92.90M	93.03M	89.86M	89.15M	96.56M	92.06M
Cash Flow
Free Cash Flow	20.74M	24.10M	10.85M	9.81M	9.68M	16.47M
Operating Cash Flow	21.33M	24.60M	12.78M	10.96M	10.74M	19.42M
Investing Cash Flow	12.93M	-712.00K	-1.87M	-1.32M	-986.00K	-2.22M
Financing Cash Flow	-8.97M	-9.32M	-14.78M	-13.36M	-47.67M	24.60M

HighCo SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.04
• 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 4.04 is above the 20-day moving average (MA) of 4.01, above the 50-day MA of 3.87, and above the 200-day MA of 2.84, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 56.09 is Neutral, neither overbought nor oversold. The STOCH value of 74.44 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	79 Outperform	€76.05M	14.27	4.71%	6.13%	-21.70%	-49.75%
ALBLD	76 Outperform	€95.44M	18.77	―	―	21.20%	13.12%
ALREW	71 Outperform	€96.85M	3.92	12.60%	1.15%	-3.53%	28.87%
ALHOP	61 Neutral	€40.59M	11.16	―	4.91%	11.03%	-37.78%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LOCAL	50 Neutral	€57.00M	0.47	―	―	-0.78%	―
ALISP	44 Neutral	€27.70M	―	―	―	11.47%	-116.56%