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Lagardere SCA (FR:MMB)
:MMB

Lagardere SCA (MMB) AI Stock Analysis

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Lagardere SCA

(LSE:MMB)

Rating:70Outperform
Price Target:
€22.00
▲(10.00%Upside)
Lagardere SCA has a solid financial foundation with robust revenue growth and cash flow management, although profitability needs improvement. Technical indicators are positive, supporting a stable outlook. Valuation metrics reflect fair market value, making the stock a stable investment in the travel services industry.

Lagardere SCA (MMB) vs. iShares MSCI France ETF (EWQ)

Lagardere SCA Business Overview & Revenue Model

Company DescriptionLagardere 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 MoneyLagardère SCA generates revenue through diverse channels across its primary sectors. In publishing, the company earns money by selling books and digital content through its various imprints under Hachette Livre. This includes educational materials, general literature, and international publishing operations. The travel retail sector contributes significantly to the company's income by operating duty-free and travel essential stores, offering products ranging from luxury goods to convenience items, thus capturing spending from travelers in high-traffic locations. In the media segment, Lagardère makes money through advertising sales, broadcasting rights, and subscription services. The company's strategic partnerships, especially in travel retail and content distribution, along with its strong brand portfolio, are crucial to sustaining its revenue streams.

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
76
Positive
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
62
Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
9.00B8.13B6.98B5.17B4.48B
Gross Profit
5.62B3.39B336.00M-27.00M-386.00M
EBIT
572.00M1.16B333.00M-3.00M-441.00M
EBITDA
1.36B1.10B926.00M744.00M267.00M
Net Income Common Stockholders
168.00M144.00M161.00M-101.00M-660.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
393.00M467.00M851.00M937.00M687.00M
Total Assets
9.52B9.32B8.98B8.75B8.50B
Total Debt
4.90B4.95B4.59B4.38B4.68B
Net Debt
4.50B4.48B3.74B3.45B4.00B
Total Liabilities
8.43B8.37B7.95B7.81B7.67B
Stockholders Equity
977.00M837.00M899.00M815.00M725.00M
Cash FlowFree Cash Flow
995.00M711.00M428.00M586.00M-40.00M
Operating Cash Flow
1.29B980.00M650.00M742.00M139.00M
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 Price20.00
Price Trends
50DMA
19.64
Positive
100DMA
19.77
Positive
200DMA
20.17
Negative
Market Momentum
MACD
0.09
Positive
RSI
48.84
Neutral
STOCH
13.37
Positive
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 is below the 20-day moving average (MA) of 20.39, above the 50-day MA of 19.64, and below the 200-day MA of 20.17, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 13.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:MMB.

Lagardere SCA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRMMB
70
Outperform
€2.81B16.7718.52%3.33%10.68%16.58%
62
Neutral
$6.88B11.322.95%3.87%2.70%-24.57%
€897.13M25.262.16%1.50%
€2.83B20.5719.41%3.13%
77
Outperform
€5.91B14.83
6.46%19.68%-3.30%
74
Outperform
€751.23M12.47
6.01%30.64%
€1.62B124.81
0.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:MMB
Lagardere SCA
20.00
-1.00
-4.75%
GB:0QSH
Fnac Darty SA
30.00
-3.70
-10.98%
GB:0IUJ
Interparfums
36.80
-4.93
-11.81%
FR:FDJU
La Francaise des Jeux SA
31.74
0.90
2.92%
FR:ALVDM
Voyageurs du Monde SA
170.50
25.70
17.75%
FR:ALHG
Louis Hachette Group SA
1.64
0.32
24.24%

Lagardere SCA Corporate Events

Lagardère SCA Announces Key Resolutions for Upcoming General Meeting
Mar 20, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.