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Solocal
(LOCAL)
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Rating:45Neutral
Price Target:
€4.00
▼(-6.98% Downside)
Action:Reiterated
Date:04/27/26
The score is held down primarily by weak financial performance—especially structurally negative equity, ongoing revenue decline, and volatile profitability—partly offset by improved recent cash generation. Technical indicators also lean bearish in the near term, while the relatively low P/E offers some valuation support but is not enough to outweigh the fundamental balance-sheet and top-line risks.
Positive Factors
Improved cash generation
Solid positive operating and free cash flow in 2025 signals improved cash conversion versus prior years. Durable cash generation reduces reliance on external financing, funds operations and reinvestment, and provides a runway to stabilise the business if management sustains collection and cost discipline.
Negative Factors
Consistently negative shareholder equity
Persistently negative equity materially raises financial risk and limits strategic options. It constrains ability to raise capital, complicates leverage assessment, distorts returns metrics, and increases vulnerability to shocks or creditor pressure absent sustained profit and cash improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Solid positive operating and free cash flow in 2025 signals improved cash conversion versus prior years. Durable cash generation reduces reliance on external financing, funds operations and reinvestment, and provides a runway to stabilise the business if management sustains collection and cost discipline.
Read all positive factors
Solocal (LOCAL) vs. iShares MSCI France ETF (EWQ)
Market Cap
€66.21M
Dividend YieldN/A
Average Volume (3M)13.03K
Price to Earnings (P/E)7.9
Beta (1Y)0.71
Revenue Growth-2.99%
EPS GrowthN/A
CountryFR
Employees2,082
SectorGeneral
Sector StrengthN/A
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.52
Shares Outstanding35,903,713
10 Day Avg. Volume11,092
30 Day Avg. Volume13,028
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)-8.29
Price to Sales (P/S)0.46
P/FCF Ratio4.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€5.00Price Target Upside16.28% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.53
Revenue Forecast (FY)€306.60M
Solocal Business Overview & Revenue Model
Company Description
Solocal Group S.A. delivers digital solutions to clients both within France and internationally. Its "Connect" service empowers very small and medium-sized enterprises (VSEs and SMEs) to effectively manage their online presence across PagesJaunes ...
How the Company Makes Money
Solocal makes money primarily by selling digital marketing and advertising solutions to businesses (especially local SMEs) seeking to generate leads and customers. Key revenue streams historically include: (1) Digital advertising and sponsored vis...
Solocal Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
18
Very Negative
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 324.50M | 334.50M | 359.66M | 399.97M | 428.01M |
| Gross Profit | 28.10M | -13.90M | 181.27M | 58.81M | 306.85M |
| EBITDA | 59.70M | 178.10M | 55.29M | 114.54M | 129.82M |
| Net Income | 14.20M | 119.90M | -45.85M | -3.25M | 22.87M |
Balance Sheet | |||||
| Total Assets | 318.26M | 331.10M | 314.93M | 373.84M | 440.41M |
| Cash, Cash Equivalents and Short-Term Investments | 79.62M | 70.88M | 55.69M | 70.97M | 81.59M |
| Total Debt | 57.90M | 80.63M | 295.17M | 288.87M | 313.09M |
| Total Liabilities | 336.20M | 381.74M | 592.97M | 604.40M | 679.75M |
| Stockholders Equity | -17.94M | -50.64M | -278.04M | -230.56M | -239.33M |
Cash Flow | |||||
| Free Cash Flow | 36.76M | 6.63M | 7.48M | 22.27M | 43.81M |
| Operating Cash Flow | 51.98M | 26.60M | 27.91M | 53.61M | 78.73M |
| Investing Cash Flow | -15.26M | -9.80M | -20.13M | -31.21M | -34.82M |
| Financing Cash Flow | -27.93M | -1.61M | -22.86M | -31.86M | -25.06M |
Solocal Technical Analysis
Positive
4.30
Price Trends
4.03
Positive
4.18
Negative
4.00
Positive
Market Momentum
0.01
Negative
53.43
Neutral
50.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:LOCAL, the sentiment is Positive. The current price of 4.3 is above the 20-day moving average (MA) of 4.02, above the 50-day MA of 4.03, and above the 200-day MA of 4.00, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:LOCAL.
Solocal Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | €9.36M | 4.47 | 216.14% | ― | <0.01% | -42.43% | |
65 Neutral | €105.57M | 11.55 | 26.55% | 2.84% | 11.39% | -4.96% | |
63 Neutral | €67.77M | 20.00 | 4.71% | 5.16% | -32.60% | -34.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | €66.21M | 7.87 | ― | ― | -2.99% | ― | |
44 Neutral | €2.79M | -0.30 | ― | ― | -25.76% | -38.00% |
* General Sector Average
FR:LOCAL
Solocal
4.07
1.33
48.36%
FR:DKUPL
Dekuple
26.70
0.43
1.62%
FR:ALDUX
AdUX SA
1.50
-1.15
-43.40%
FR:HCO
HighCo SA
3.60
0.57
18.66%
FR:ALINV
Invibes Advertising NV
0.61
-0.57
-48.31%
FR:ALQWA
Qwamplify SA
1.64
-0.44
-21.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.