Lagardere SCA (MMB) AI Stock Analysis

• Market Cap: €2.85B
• Dividend Yield: 3.31%
• Average Volume (3M): 15.40K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.40
• Revenue Growth: 6.34%
• EPS Growth: 168.15%
• Country: FR
• Employees: 33,574
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Travel Services
• EPS (TTM): 0.17
• Shares Outstanding: 141,669,830
• 10 Day Avg. Volume: 14,301
• 30 Day Avg. Volume: 15,399
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €23.75
• Price Target Upside: 16.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: €22.00 ▲(7.58% Upside)

Lagardere SCA has a solid financial foundation with strong cash flow management and revenue growth. However, the high leverage and low net profit margin are concerns. Technical analysis shows potential downward momentum, balanced by a fair valuation and attractive dividend yield.

Lagardere SCA Business Overview & Revenue Model

Company Description

Lagardere SCA (MMB) is a leading international media group based in France, primarily engaged in the publishing, travel retail, and media sectors. The company operates through various segments, including Lagardere Publishing, which encompasses a wide range of books and publications, and Lagardere Travel Retail, which focuses on airport and railway station retailing of products including books, cosmetics, and food items. Additionally, Lagardere operates in media with interests in radio, television, and digital content distribution, leveraging a diverse portfolio of brands and intellectual properties.

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 a strong financial performance with steady revenue growth and efficient cash flow management. While profitability margins can be improved, the company is on a positive trajectory in terms of operational efficiency and cash generation. The high leverage is a concern that needs careful monitoring, but improving equity ratios provide some stability.

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: Neutral
• Last Price: 20.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MMB, the sentiment is Neutral. The current price of 20.45 is below the 20-day moving average (MA) of 20.56, below the 50-day MA of 20.76, and above the 200-day MA of 20.07, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:MMB.

Lagardere SCA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALVDM	74 Outperform	€767.06M	12.55		2.86%	6.01%	30.64%
ITP	73 Outperform	€2.65B	19.52	19.41%	2.83%	10.27%	8.20%
FDJU	71 Outperform	€5.19B	16.10		7.32%	26.91%	-28.35%
MMB	68 Neutral	€2.85B	13.46	26.99%	3.31%	6.34%	168.15%
FNAC	65 Neutral	€861.60M	38.38	1.54%	3.44%	17.97%	-81.24%
Sector *	63 Neutral	€17.61B	13.43	15.56%	3.59%	-0.67%	-125.81%

Lagardere SCA Corporate Events

Lagardère SCA Announces Key Resolutions for Upcoming General Meeting

Lagardère SCA has announced the details of its upcoming Combined General Meeting scheduled for 29 April 2025. The meeting will cover several key resolutions, including the approval of the 2024 financial statements, a dividend distribution of €0.67 per share, and the appointment of new independent directors. The meeting will also address the renewal of financial authorizations and updates to the company’s articles of association. These developments are significant for stakeholders as they reflect the company’s strategic direction and governance priorities.