Lagardere SCA (MMB) AI Stock Analysis

• Market Cap: €2.90B
• Dividend Yield: 3.27%
• Average Volume (3M): 18.54K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.41
• Revenue Growth: 10.68%
• EPS Growth: 16.58%
• Country: FR
• Employees: 33,574
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Travel Services
• EPS (TTM): 1.19
• Shares Outstanding: 141,669,830
• 10 Day Avg. Volume: 16,872
• 30 Day Avg. Volume: 18,543
• 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: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: €22.00 ▲(7.84%Upside)

Lagardere SCA's strong financial performance and stable technical indicators are the primary contributors to its stock score. While the company shows efficient cash flow management, the need for improved profitability margins and high leverage risk are considerations. The valuation is supported by a reasonable P/E ratio and a solid dividend yield.

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

Lagardère 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

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
	EBIT
572.00M	1.16B	333.00M	-3.00M	-441.00M
	EBITDA
1.36B	1.10B	926.00M	744.00M	267.00M
	Net Income Common Stockholders
168.00M	144.00M	161.00M	-101.00M	-660.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
393.00M	467.00M	851.00M	937.00M	687.00M
	Total Assets
9.52B	9.32B	8.98B	8.75B	8.50B
	Total Debt
4.90B	4.95B	4.59B	4.38B	4.68B
	Net Debt
4.50B	4.48B	3.74B	3.45B	4.00B
	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: Positive
• Last Price: 20.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MMB, the sentiment is Positive. The current price of 20.4 is above the 20-day moving average (MA) of 20.37, above the 50-day MA of 19.72, and above the 200-day MA of 20.13, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 82.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:MMB.

Lagardere SCA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMB	70 Outperform	€2.90B	17.32	18.52%	3.27%	10.68%	16.58%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
0QSH		€948.95M	25.82	2.16%	1.40%	―	―
0IUJ		€2.87B	21.16	19.41%	3.04%	―	―
FDJU	77 Outperform	€5.92B	14.81		6.41%	16.93%	-3.18%
ALVDM	74 Outperform	€749.03M	12.72		―	6.01%	30.64%
ALHG		€1.69B	130.15		0.29%	―	―

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.