Lagardere SCA (MMB) AI Stock Analysis

• Market Cap: €2.80B
• Dividend Yield: 3.37%
• Average Volume (3M): 11.39K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.47
• Revenue Growth: 6.34%
• EPS Growth: 168.15%
• Country: FR
• Employees: 33,574
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 0.17
• Shares Outstanding: 141,669,830
• 10 Day Avg. Volume: 13,548
• 30 Day Avg. Volume: 11,387
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €22.50
• Price Target Upside: 13.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: €22.50 ▲(13.07% Upside)

Lagardere SCA's overall stock score is driven by strong financial performance and fair valuation. The company's efficient cash flow management and attractive dividend yield are significant strengths. However, high leverage and mixed technical indicators present risks that need to be addressed.

Lagardere SCA Business Overview & Revenue Model

Company Description

Lagardere SA engages in content publishing, production, broadcasting, and distribution businesses worldwide. It operates through two divisions: Lagardère Publishing, and Lagardère Travel Retail. The Lagardère Publishing division includes book publishing and e-publishing businesses, which cover the areas of education, general literature, illustrated books, partworks, dictionaries, youth works, mobile games, board games, and distribution in English, French, and Spanish languages. The Lagardère Travel Retail division is involved in retail activities in transit hubs and concessions in travel essentials, duty free and fashion, and food services fields. As of December 31, 2021, this segment operated 2,928 stores under its own international store names, such as Relay, Hubiz, 1Minute, Hub Convenience, Discover, Tech2go, Aelia Duty Free, The Fashion Gallery, The Fashion Place, Eye Love, So Chocolate, Bread&Co., Hello!, So! Coffee, Trib's, Vino Volo, Natoo, etc., as well as store names with a local identity comprising BuY Paris Duty Free, Casa Del Gusto, and The Belgian Chocolate House. It also operates stores under franchises or licenses, with retail partners that include TripAdvisor, Fnac, iStore, Marks & Spencer, Hermès, Victoria's Secret, Nespresso, Costa Coffee, Burger King, Dean & Deluca, Eric Kayser, and Paul. In addition, the company engages in the sale of advertising space, magazine circulation, and television broadcasting services; produces concerts and shows; manages entertainment venues; and provides licensing and digital services. Further, it operates radio stations under the Europe 1, Virgin Radio, and RFM names; publishes magazine under the Paris Match name and weekly newspaper under the Le Journal du Dimanche name; and offers a global media imprint under the Elle name. The company was formerly known as Lagardère SCA and changed its name to Lagardere SA in June 2021. The company was founded in 1826 and is headquartered in Paris, France.

How the Company Makes Money

Lagardere SCA generates revenue through multiple streams, primarily from its publishing activities, which include the sale of books and associated media. The travel retail segment contributes significantly to earnings by operating retail stores in airports and transport hubs, capitalizing on the high foot traffic in these locations to sell a variety of consumer goods. Advertising revenue is another key component of the company's income, particularly from its media operations in radio and television. Additionally, partnerships with various brands and companies enhance its product offerings and marketing capabilities, contributing to overall revenue growth. The company also benefits from digital content sales and licensing agreements, which have become increasingly important in the evolving media landscape.

Lagardere SCA Financial Statement Overview

Summary

Lagardere SCA exhibits strong financial performance with consistent revenue growth and efficient cash flow management. However, the low net profit margin and high leverage are areas of concern that need improvement.

Income Statement

Lagardere SCA has shown consistent revenue growth with a notable increase of 10.67% from 2023 to 2024. The company has maintained a healthy gross profit margin of 40.68% in 2024, demonstrating strong operational efficiency. However, the net profit margin is relatively low at 1.87%, suggesting room for improvement in cost management and profitability. The EBIT and EBITDA margins are satisfactory, indicating effective management of operating expenses.

Balance Sheet

The company has a high debt-to-equity ratio of 5.01, which poses a leverage risk. Nevertheless, the equity ratio has improved slightly to 10.26%, reflecting a gradual strengthening of the equity position. The return on equity (ROE) remains modest at 17.19%, indicating room for enhancing shareholder returns.

Cash Flow

Lagardere SCA has demonstrated strong cash flow management, with a significant free cash flow growth rate of 39.95% in 2024. The operating cash flow to net income ratio is robust at 7.67, indicating efficient conversion of income to cash. Additionally, the free cash flow to net income ratio of 5.92 highlights effective capital allocation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.00B	8.13B	6.98B	5.17B	4.48B
Gross Profit	5.62B	3.39B	336.00M	-27.00M	-386.00M
EBITDA	1.36B	1.10B	926.00M	744.00M	267.00M
Net Income	168.00M	144.00M	161.00M	-101.00M	-660.00M
Balance Sheet
Total Assets	9.52B	9.32B	8.98B	8.75B	8.50B
Cash, Cash Equivalents and Short-Term Investments	393.00M	467.00M	851.00M	937.00M	687.00M
Total Debt	4.90B	4.95B	4.59B	4.38B	4.68B
Total Liabilities	8.43B	8.37B	7.95B	7.81B	7.67B
Stockholders Equity	977.00M	837.00M	899.00M	815.00M	725.00M
Cash Flow
Free Cash Flow	995.00M	711.00M	428.00M	586.00M	-40.00M
Operating Cash Flow	1.29B	980.00M	650.00M	742.00M	139.00M
Investing Cash Flow	-197.00M	-601.00M	-346.00M	-322.00M	-121.00M
Financing Cash Flow	-1.21B	-744.00M	-431.00M	-126.00M	-281.00M

Lagardere SCA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MMB, the sentiment is Negative. The current price of 19.9 is below the 20-day moving average (MA) of 20.31, below the 50-day MA of 20.42, and below the 200-day MA of 20.07, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 38.92 is Neutral, neither overbought nor oversold. The STOCH value of 14.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:MMB.

Lagardere SCA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDJU	77 Outperform	€5.24B	16.24	33.53%	7.24%	26.91%	-28.35%
ITP	75 Outperform	€2.42B	17.26	18.63%	3.14%	9.68%	19.46%
ALVDM	74 Outperform	€702.96M	11.50	38.55%	3.14%	6.01%	30.64%
MMB	69 Neutral	€2.80B	13.23	26.99%	3.37%	6.34%	168.15%
FNAC	64 Neutral	€849.76M	37.85	2.23%	3.48%	17.97%	-81.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%