HighCo SA (HCO) AI Stock Analysis

• Market Cap: €76.62M
• Dividend Yield: 5%
• Average Volume (3M): 48.28K
• Price to Earnings (P/E): 14.4
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: €4.50 ▲(14.21% 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.

Positive Factors

Cash Generation

Strong cash generation enhances liquidity and operational efficiency, providing the company with the flexibility to invest in growth opportunities and weather economic downturns.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and provides a stable foundation for long-term growth, allowing the company to pursue strategic initiatives without financial strain.

Operational Efficiency

High operational efficiency, as indicated by robust cash conversion, supports sustainable profitability and the ability to reinvest in the business, ensuring continued competitiveness in the market.

Negative Factors

Revenue Growth Challenges

Limited revenue growth suggests challenges in expanding market share or product offerings, which could hinder long-term scalability and impact the company's competitive position.

Earnings Decline

A significant decline in earnings per share indicates potential operational or market challenges, which may affect investor confidence and the company's ability to fund future growth initiatives.

Market Expansion Limitations

Negative revenue growth highlights difficulties in expanding market presence or adapting to industry changes, potentially limiting the company's ability to capitalize on new opportunities.

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 multiple streams, primarily by offering comprehensive marketing solutions to brands and retailers. The company earns money through service fees for its promotional marketing campaigns, digital communication strategies, and loyalty program management. Key revenue streams include the design and execution of promotional offers, digital advertising services, and data analytics that help clients understand consumer behavior and improve their targeting efforts. Additionally, HighCo has established significant partnerships with major retailers and brands, allowing it to leverage these relationships to access a broader audience and drive sales. The company may also benefit from performance-based incentives tied to the success of its marketing initiatives, further contributing to its earnings.

HighCo SA Financial Statement Overview

Summary

HighCo SA exhibits solid financial health with stable revenue and profitability. The balance sheet is strong with low leverage, and cash flow performance is outstanding, indicating excellent liquidity and operational efficiency.

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: 3.94
• 50DMA: Negative
• 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 3.94 is above the 20-day moving average (MA) of 3.93, below the 50-day MA of 3.97, and above the 200-day MA of 3.16, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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	€76.62M	14.38	4.71%	5.00%	-21.70%	-49.75%
ALREW	66 Neutral	€83.81M	3.39	12.60%	1.30%	-3.53%	28.87%
ALBLD	65 Neutral	€79.07M	15.55	―	―	21.20%	13.12%
ALHOP	61 Neutral	€40.14M	11.03	―	5.08%	11.03%	-37.78%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LOCAL	49 Neutral	€55.38M	0.46	―	―	-0.78%	―
ALISP	49 Neutral	€22.04M	16.09	―	―	-1.63%	―