Maisons du Monde SA (MDM) AI Stock Analysis

• Market Cap: €89.84M
• Dividend Yield: 2.58%
• Average Volume (3M): 13.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -10.93%
• EPS Growth: -1451.56%
• Country: FR
• Employees: 5,506
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Home Improvement
• EPS (TTM): -2.36
• Shares Outstanding: 39,189,290
• 10 Day Avg. Volume: 20,035
• 30 Day Avg. Volume: 13,067
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.62
• 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: €3.00
• Price Target Upside: 28.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: €2.00 ▼(-14.16%Downside)

Maisons du Monde SA's stock is currently under pressure due to financial and technical challenges. The primary concerns are its declining revenue, high leverage, and bearish technical indicators. While cash flow provides some stability, the overall outlook remains cautious with significant risks to be addressed.

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 both physical retail stores and an e-commerce platform, allowing it to reach a broad customer base. A significant portion of its revenue comes from its expansive network of stores located across Europe, where customers can experience the products in person. Additionally, the company leverages its online presence to capture digital sales, which have become increasingly important in recent years. Maisons du Monde also benefits from its private label offerings, which help differentiate its products in the market and potentially offer higher margins. While specific financial details and partnerships are not publicly disclosed in detail, the company's revenue model relies heavily on retail sales across both physical and digital channels.

Maisons du Monde SA Financial Statement Overview

Summary

Maisons du Monde SA faces challenges with declining revenue and profitability, as evidenced by negative growth in key income statement metrics. The company's balance sheet shows considerable leverage, but with a stable equity base. Cash flow remains a relative strength, providing some cushion against earnings volatility. The company needs to address operational inefficiencies and manage debt levels to improve financial stability.

Income Statement

Maisons du Monde SA has experienced a decline in revenue over the past year, with total revenue decreasing from €1.157 billion in 2023 to €1.030 billion in 2024, representing a negative growth rate. The company reported a negative net income of €115.4 million in 2024, resulting in a negative net profit margin. Additionally, the EBIT margin has turned negative, reflecting operational challenges. Despite a positive EBITDA margin, the overall profitability metrics indicate significant financial pressures.

Balance Sheet

The balance sheet shows a stable equity position with stockholders' equity at €499.5 million. However, the debt-to-equity ratio is relatively high, indicating significant leverage, with total debt at €696.4 million. The equity ratio remains healthy, suggesting a reasonable proportion of assets financed by equity. Nonetheless, the high debt levels pose potential risks in a volatile market environment.

Cash Flow

Maisons du Monde SA has maintained a strong free cash flow position with €156.2 million in 2024, demonstrating resilience in cash generation despite the net income loss. The operating cash flow to net income ratio is high, reflecting efficient cash conversion. However, the free cash flow growth rate is modest, indicating limited expansion in cash flow capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.16B	1.28B	1.35B	1.23B
Gross Profit	675.16M	751.11M	840.13M	915.41M	823.41M
EBITDA	126.66M	197.45M	240.31M	279.13M	255.61M
Net Income	-115.40M	8.57M	34.30M	77.37M	-16.13M
Balance Sheet
Total Assets	1.53B	1.65B	1.85B	1.84B	1.97B
Cash, Cash Equivalents and Short-Term Investments	90.50M	29.89M	121.25M	163.23M	296.74M
Total Debt	696.40M	690.13M	837.32M	815.83M	1.01B
Total Liabilities	1.03B	1.05B	1.25B	1.19B	1.37B
Stockholders Equity	499.50M	595.03M	602.91M	651.13M	611.55M
Cash Flow
Free Cash Flow	156.20M	154.67M	144.77M	206.49M	169.47M
Operating Cash Flow	165.68M	188.72M	211.98M	258.73M	221.25M
Investing Cash Flow	-25.80M	-33.64M	-60.49M	-38.75M	-51.27M
Financing Cash Flow	-75.00M	-251.04M	-193.74M	-353.48M	32.13M

Maisons du Monde SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.33
• 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 2.33 is below the 20-day moving average (MA) of 2.41, below the 50-day MA of 2.55, and below the 200-day MA of 3.42, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 39.53 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
Sector *	65 Neutral	€21.52B	12.88	7.21%	3.39%	0.31%	-40.22%
MDM	44 Neutral	€89.84M	―	-21.09%	2.58%	-10.93%	-1451.56%
4OL		€82.32M	5.81	10.33%	―	―	―
5RO		€382.95M	24.08	15.82%	3.31%	―	―
CAA		€78.86M	5.08	10.47%	2.57%	―	―
ALBOU		€310.36M	125,000.00		5.58%	―	―
ALVU	71 Outperform	€134.32M	18.10		2.71%	8.59%	-22.37%