Maisons du Monde SA (MDM) AI Stock Analysis

• Market Cap: €68.60M
• Dividend Yield: 3%
• Average Volume (3M): 51.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -10.98%
• EPS Growth: -905.89%
• Country: FR
• Employees: 5,506
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): -1.96
• Shares Outstanding: 39,189,290
• 10 Day Avg. Volume: 57,697
• 30 Day Avg. Volume: 51,468
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 1.07
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: €1.50 ▼(-13.29% Downside)

The score is primarily held back by weak financial performance (declining revenue, negative profitability, high leverage, and sharply lower free cash flow) and a bearish technical setup (below major moving averages with negative MACD). Valuation provides some support via the ~3.46% dividend yield, but the negative P/E reflects ongoing losses.

Positive Factors

Gross margin stability

A consistent ~65% gross margin provides durable buffer versus input cost swings and supports pricing flexibility. Over the next 2-6 months this margin base can help protect operating cash generation and preserve strategic options while management works on top-line recovery.

Positive operating cash flow

Positive operating cash flow indicates the core retail and e-commerce operations generate cash despite reported losses. This sustained cash conversion supports working capital, service of existing debt, and near-term investment in store and online capabilities over the coming months.

Multi-channel retail model

A combined brick-and-mortar and online model diversifies revenue sources and customer access, reducing single-channel risk. This omnichannel footprint supports customer retention, repeat purchases and structural competitiveness versus pure-play or pure-physical peers over the medium term.

Negative Factors

Declining revenue & margins

A multiyear decline in revenue alongside negative EBIT and net margins undermines scale economics and margin leverage. Persistent top-line weakness will strain profitability, limit reinvestment capacity, and challenge the company’s ability to regain market share over the next several months.

Elevated financial leverage

A debt-to-equity ratio of 1.39 signals significant leverage that reduces financial flexibility. With constrained profits and volatile retail demand, elevated leverage increases refinancing and interest-rate risk and could force tighter cash management or asset disposal within a 2-6 month horizon.

Sharply falling free cash flow

A near-50% TTM decline in free cash flow materially weakens the company’s ability to fund investments, repay debt, or absorb demand shocks. Coupled with negative ROE, this deterioration suggests capital is not generating returns and may necessitate external financing or restructuring.

Maisons du Monde SA Business Overview & Revenue Model

Company Description

Maisons du Monde S.A., through its subsidiaries, creates and distributes home decoration items and furniture in France and internationally. The company's decorative products include bed linen products, carpets, candles, pillows and cushions, clocks, tableware, lamps, kitchen utensils, mirrors and frames, vases, storage units, curtains and net curtains, and bath products. It also provides furniture, such as sofas, chairs, beds, mattresses and bedframes, floor lamps, tables, and junior furniture; and tables and storage units comprising bookshelves, wardrobes, and cupboards, as well as outdoor furniture. In addition, the company offers warehouse logistics and order preparation services, as well as container transport services between harbor and warehouses. As of December 31, 2021, it operated 357 stores in nine countries; and an e-commerce platform. The company also offers its products through four catalogues covering general, outdoor furniture, junior, and B2B. It provides its products under the Maisons du Monde brand. The company was formerly known as Magnolia (BC) SAS. Maisons du Monde S.A. was founded in 1996 and is headquartered in Vertou, France.

How the Company Makes Money

Maisons du Monde generates revenue primarily through the sale of its home decor and furniture products. The company operates a multi-channel retail model, combining brick-and-mortar stores with a strong e-commerce presence. Key revenue streams include direct sales from their extensive product catalog, seasonal collections, and exclusive collaborations with designers. Additionally, MDM benefits from strategic partnerships with logistics providers to optimize supply chain efficiency, and they often leverage marketing campaigns to drive traffic to both physical and online stores. The company also focuses on offering a unique customer experience, which helps in retaining customers and encouraging repeat purchases.

Maisons du Monde SA Financial Statement Overview

Summary

Maisons du Monde SA is experiencing financial challenges with declining revenue and profitability. The high leverage and negative return on equity indicate financial instability. Positive operating cash flow is a positive aspect, but the significant decline in free cash flow growth is concerning.

Income Statement

Maisons du Monde SA has experienced declining revenue over the past few years, with a TTM revenue growth rate of -2.44%. The company is currently facing profitability challenges, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively stable at around 65%, suggesting some operational efficiency. The declining revenue and negative profitability metrics are concerning for future growth prospects.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.39, indicating significant leverage. Return on equity is negative, reflecting the company's current unprofitability. The equity ratio is not provided, but the high leverage poses a risk to financial stability. The company needs to manage its debt levels carefully to avoid financial distress.

Cash Flow

Operating cash flow remains positive, but there is a significant decline in free cash flow growth, with a TTM decrease of 49.66%. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the decline in free cash flow growth is a concern and could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	981.11M	1.03B	1.16B	1.28B	1.35B	1.18B
Gross Profit	643.83M	675.16M	350.99M	840.13M	915.41M	779.25M
EBITDA	133.38M	126.66M	206.14M	240.31M	279.13M	255.61M
Net Income	-166.59M	-115.40M	8.57M	34.30M	77.37M	1.48M
Balance Sheet
Total Assets	1.47B	1.53B	1.65B	1.85B	1.84B	1.97B
Cash, Cash Equivalents and Short-Term Investments	96.30M	90.50M	29.89M	121.25M	163.23M	296.74M
Total Debt	746.13M	696.40M	690.13M	837.32M	815.83M	1.01B
Total Liabilities	1.06B	1.03B	1.05B	1.25B	1.19B	1.37B
Stockholders Equity	401.65M	499.50M	595.03M	602.91M	651.13M	611.55M
Cash Flow
Free Cash Flow	76.38M	156.20M	154.67M	144.77M	206.49M	169.47M
Operating Cash Flow	87.85M	165.68M	188.72M	211.98M	258.73M	221.25M
Investing Cash Flow	-27.74M	-25.80M	-33.64M	-60.49M	-38.75M	-51.27M
Financing Cash Flow	27.19M	-75.00M	-251.04M	-193.74M	-353.48M	32.13M

Maisons du Monde SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MDM, the sentiment is Negative. The current price of 1.73 is below the 20-day moving average (MA) of 1.91, below the 50-day MA of 1.94, and below the 200-day MA of 2.22, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 25.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:MDM.

Maisons du Monde SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALVU	68 Neutral	€146.31M	19.71	―	2.38%	8.59%	-22.37%
RBO	67 Neutral	€316.08M	23.85	14.30%	3.72%	0.82%	-34.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ALMRB	61 Neutral	€64.32M	5.84	7.08%	―	1.96%	-34.11%
MDM	48 Neutral	€68.60M	-0.41	-33.85%	3.00%	-10.98%	-905.89%