Lagardere SCA (MMB) AI Stock Analysis

• Market Cap: €2.94B
• Dividend Yield: 3.17%
• Average Volume (3M): 31.81K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.42
• Revenue Growth: 10.68%
• EPS Growth: 16.58%
• Country: FR
• Employees: 33,574
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Travel Services
• EPS (TTM): 1.19
• Shares Outstanding: 141,669,830
• 10 Day Avg. Volume: 13,348
• 30 Day Avg. Volume: 31,809
• PEG Ratio: 0.15
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.79
• 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: €25.50
• Price Target Upside: 19.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: €22.50 ▲(5.14%Upside)

Lagardere SCA's overall stock score reflects strong financial performance and reasonable valuation, with some positive technical indicators. The company's efficient cash flow management and revenue growth are significant strengths, while high leverage and modest profitability margins are areas for potential improvement. The absence of significant earnings call insights or corporate events keeps the focus primarily on fundamental and technical factors.

Lagardere SCA Business Overview & Revenue Model

Company Description

Lagardere SCA is a leading international group with operations in more than 40 countries, primarily focused on two main sectors: Publishing and Travel Retail. In the Publishing sector, the company operates under the Hachette Livre brand, known for producing a wide array of books ranging from general literature to educational publications. In Travel Retail, Lagardere operates duty-free and duty-paid stores under the Lagardere Travel Retail brand, which includes a network of outlets in airports, railway stations, and other travel hubs.

How the Company Makes Money

Lagardere SCA generates revenue from its two primary business activities. In the Publishing sector, the company earns money through the sale of books across various formats, including print, digital, and audio, catering to a diverse audience. This revenue stream is supported by a strong portfolio of bestselling authors and strategic acquisitions. In the Travel Retail sector, Lagardere makes money through the operation of retail outlets in high-traffic travel environments, where it sells a wide range of products such as luxury goods, convenience items, and food and beverages. Key factors contributing to earnings in this sector include strategic partnerships with airport authorities and an extensive presence in global travel hubs, which ensure a steady flow of customers.

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: 21.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 21.4 is above the 20-day moving average (MA) of 21.29, above the 50-day MA of 20.73, and above the 200-day MA of 20.09, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 8.96 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDJU	79 Outperform	€5.61B	14.04		6.84%	16.93%	-3.18%
ITP	78 Outperform	€2.81B	20.69	19.41%	2.94%	10.27%	8.20%
ALVDM	74 Outperform	€795.80M	12.95		2.78%	6.01%	30.64%
FNAC	72 Outperform	€991.88M	27.14	2.16%	2.95%	4.81%	-28.59%
MMB	71 Outperform	€2.94B	17.57	18.52%	3.17%	10.68%	16.58%
Sector *	67 Neutral	¥252.20B	13.26	6.45%	2.71%	5.22%	-11.89%

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.