Solocal (LOCAL) AI Stock Analysis

• Market Cap: €57.00M
• Dividend Yield: N/A
• Average Volume (3M): 13.03K
• Price to Earnings (P/E): 0.5
• Beta (1Y): 13.81
• Revenue Growth: -0.78%
• EPS Growth: N/A
• Country: FR
• Employees: 2,082
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.16
• Shares Outstanding: 35,903,713
• 10 Day Avg. Volume: 11,092
• 30 Day Avg. Volume: 13,028
• PEG Ratio: -0.02
• Price to Book (P/B): -6.02
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 45.97
• 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: €2.50
• Price Target Upside: -27.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: €4.00 ▲(16.62% Upside)

Solocal's overall stock score reflects significant financial and operational challenges, as indicated by a weak balance sheet and bearish technical indicators. Despite these issues, the stock's low P/E ratio suggests potential undervaluation, which could attract value investors. However, the lack of earnings call data and corporate events limits further insights into the company's future prospects.

Solocal Business Overview & Revenue Model

Company Description

Solocal Group S.A. provides digital services in France and internationally. Its services include connect that allows VSEs and SMEs to manage their digital presence on PagesJaunes and various Web through mobile application, or a web interface, as well as manages interactions between professionals and their customers; and booster that allows companies to increase their digital visibility in the Web. The company was formerly known as PagesJaunes Groupe and changed its name to SoLocal Group S.A. in June 2013. Solocal Group S.A. was founded in 1896 and is based in Boulogne-Billancourt, France.

How the Company Makes Money

Solocal generates revenue primarily through its digital marketing services, including SEO and PPC advertising, which are charged on a subscription basis or through performance-based models. The company also earns income from its directory services, where businesses pay for enhanced visibility and features in local search results. Additionally, partnerships with technology platforms and local service providers enhance Solocal's offerings, creating bundled services that attract more clients. The company's focus on small and medium-sized enterprises (SMEs) allows it to tap into a vast market segment that seeks affordable and effective online marketing solutions.

Solocal Financial Statement Overview

Summary

Solocal faces significant financial challenges, characterized by declining revenues and negative equity. While there are improvements in cash flow and profitability margins, the high leverage and negative equity position pose substantial risks. The company needs to address its revenue decline and improve cost management to stabilize its financial health.

Income Statement

The income statement reveals a challenging financial position with declining revenue over the years, highlighted by a significant drop of 87.1% in the most recent year. Despite a positive net profit margin of 35.8% in 2024, the gross profit margin is negative, indicating cost management issues. EBIT and EBITDA margins have shown improvement, but the overall revenue trajectory is concerning.

Balance Sheet

The balance sheet indicates financial instability with negative stockholders' equity, leading to a negative debt-to-equity ratio. The return on equity is also negative, reflecting poor profitability from shareholders' investments. The company's high leverage poses a risk, although total assets have remained relatively stable.

Cash Flow

Cash flow analysis shows some positive trends, with a significant growth in free cash flow by 89.6% in the latest year. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. The free cash flow to net income ratio is moderate, indicating some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	420.15M	334.50M	359.66M	399.97M	428.01M	437.42M
Gross Profit	113.75M	-13.90M	181.27M	58.81M	306.85M	312.47M
EBITDA	52.37M	178.10M	55.29M	114.54M	129.82M	124.76M
Net Income	236.37M	119.90M	-45.85M	-3.25M	22.87M	65.58M
Balance Sheet
Total Assets	326.04M	331.10M	314.93M	373.84M	440.41M	494.74M
Cash, Cash Equivalents and Short-Term Investments	75.77M	70.88M	55.69M	70.97M	81.59M	62.38M
Total Debt	69.29M	36.33M	295.17M	288.87M	313.09M	330.99M
Total Liabilities	369.97M	381.74M	592.97M	604.40M	679.75M	770.85M
Stockholders Equity	-43.93M	-50.64M	-278.04M	-230.56M	-239.33M	-276.10M
Cash Flow
Free Cash Flow	25.65M	6.63M	7.48M	22.27M	43.81M	-58.69M
Operating Cash Flow	43.94M	26.60M	27.91M	53.61M	78.73M	-16.64M
Investing Cash Flow	-12.19M	-9.80M	-20.13M	-31.21M	-34.82M	-40.06M
Financing Cash Flow	-5.42M	-1.61M	-22.86M	-31.86M	-25.06M	76.66M

Solocal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:LOCAL, the sentiment is Negative. The current price of 3.43 is below the 20-day moving average (MA) of 3.74, below the 50-day MA of 3.88, and above the 200-day MA of 2.98, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 29.54 is Positive, neither overbought nor oversold. The STOCH value of 5.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:LOCAL.

Solocal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALHOP	―	€41.19M	11.32	―	4.76%	11.03%	-37.78%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LOCAL	―	€57.00M	0.47	―	―	-0.78%	―
ALISP	―	€26.36M	―	―	―	11.47%	-116.56%