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Solocal Group (FR:LOCAL)
:LOCAL

Solocal (LOCAL) AI Stock Analysis

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FR:LOCAL

Solocal

(LOCAL)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
€4.50
▲(9.22% Upside)
Action:ReiteratedDate:12/09/25
Solocal's overall stock score reflects significant financial challenges, particularly in balance sheet stability and operational efficiency. While valuation appears attractive due to a low P/E ratio, technical indicators suggest caution with potential overbought conditions. Improvements in cash flow are a positive aspect, but historical volatility remains a concern.
Positive Factors
Free cash flow improvement
A 58.9% TTM rise in free cash flow indicates materially improved cash generation. Durable FCF growth enhances the company's ability to fund operations, pay down liabilities, or invest in product and sales capabilities without relying solely on external financing.
Negative Factors
Severe balance sheet weakness
Negative equity and very high leverage create sustained solvency and refinancing risk. This structural capital weakness constrains strategic investment, increases funding costs, and raises the probability of covenant pressures or forced deleveraging over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow improvement
A 58.9% TTM rise in free cash flow indicates materially improved cash generation. Durable FCF growth enhances the company's ability to fund operations, pay down liabilities, or invest in product and sales capabilities without relying solely on external financing.
Read all positive factors

Solocal (LOCAL) vs. iShares MSCI France ETF (EWQ)

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 w...
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...

Solocal Financial Statement Overview

Summary
Solocal's financial performance is mixed. While the income statement shows profitability with a positive net profit margin, operational inefficiencies are evident with a negative EBIT margin. The balance sheet is concerning due to high leverage and negative equity, indicating financial instability. Cash flow improvements are a positive sign, but historical volatility suggests caution.
Income Statement
45
Neutral
Balance Sheet
30
Negative
Cash Flow
55
Neutral
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue420.15M334.50M359.66M399.97M428.01M437.42M
Gross Profit113.75M-13.90M181.27M58.81M306.85M312.47M
EBITDA52.37M178.10M55.29M114.54M129.82M124.76M
Net Income236.37M119.90M-45.85M-3.25M22.87M65.58M
Balance Sheet
Total Assets326.04M331.10M314.93M373.84M440.41M494.74M
Cash, Cash Equivalents and Short-Term Investments75.77M70.88M55.69M70.97M81.59M62.38M
Total Debt69.29M80.63M295.17M288.87M313.09M330.99M
Total Liabilities369.97M381.74M592.97M604.40M679.75M770.85M
Stockholders Equity-43.93M-50.64M-278.04M-230.56M-239.33M-276.10M
Cash Flow
Free Cash Flow25.65M6.63M7.48M22.27M43.81M-58.69M
Operating Cash Flow43.94M26.60M27.91M53.61M78.73M-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-25.06M76.66M

Solocal Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.12
Price Trends
50DMA
4.43
Negative
100DMA
4.10
Positive
200DMA
3.84
Positive
Market Momentum
MACD
-0.09
Negative
RSI
43.08
Neutral
STOCH
75.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:LOCAL, the sentiment is Neutral. The current price of 4.12 is below the 20-day moving average (MA) of 4.18, below the 50-day MA of 4.43, and above the 200-day MA of 3.84, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 75.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:LOCAL.

Solocal Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€66.07M5.814.71%5.16%-21.70%-49.75%
66
Neutral
€10.07M4.49216.14%-0.08%23.11%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
€66.94M10.47-0.78%
42
Neutral
€3.25M-0.38-13.31%-375.69%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:LOCAL
Solocal
4.12
1.48
55.77%
FR:DKUPL
Dekuple
25.30
-2.89
-10.26%
FR:ALDUX
AdUX SA
1.62
-0.03
-1.82%
FR:HCO
HighCo SA
3.77
1.54
69.21%
FR:ALINV
Invibes Advertising NV
0.79
-0.69
-46.35%
FR:ALQWA
Qwamplify SA
1.77
-0.65
-26.86%
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.Date of analysis: Dec 09, 2025