NRJ Group (NRG) AI Stock Analysis

• Market Cap: €557.07M
• Dividend Yield: 4.03%
• Average Volume (3M): 6.07K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.22
• Revenue Growth: 1.14%
• EPS Growth: -7.09%
• Country: FR
• Employees: 1,509
• Sector: Services
• Sector Strength: N/A
• Industry: Broadcasting
• EPS (TTM): 0.06
• Shares Outstanding: 78,107,620
• 10 Day Avg. Volume: 9,589
• 30 Day Avg. Volume: 6,067
• 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: €8.50
• Price Target Upside: 16.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: €8.50 ▲(16.76%Upside)

NRJ Group earns a strong overall stock score due to its solid financial performance marked by consistent revenue growth and robust profitability. The stock's technical indicators support an upward trend, though investors should be cautious of the RSI nearing overbought levels. Valuation metrics indicate a balanced risk-reward profile, with an attractive dividend yield enhancing its appeal.

NRJ Group Business Overview & Revenue Model

Company Description

NRJ Group SA, a private media company, operates as a publisher, producer, and broadcaster in France and internationally. It operates 4 radio stations under the NRJ, CHERIE FM, NOSTALGIE, and RIRE & CHANSONS brands; approximately 230 digital radios; 6 websites; and 7 mobile applications, as well as a replay TV. The company also operates two national channels, which include NRJ 12 and CHERIE 25; and NRJ Hits, a music channel for cable satellite. In addition, it engages in advertising activities; marketing activities; operates musical shows under the NRJ Music label; and audio and audio visual, trademark licensing, and real estate activities. The company has a strategic partnership with iHeartMedia, Inc. NRJ Group SA was founded in 1981 and is based in Paris, France.

How the Company Makes Money

NRJ Group generates revenue through multiple streams, including advertising sales across its radio stations, television channels, and digital platforms. The company capitalizes on its strong brand equity and extensive audience reach to attract advertisers. Additionally, NRJ Group earns income from partnerships, syndication of content, licensing, and events, further enhancing its revenue base. The company's ability to effectively integrate traditional and digital media strategies enables it to maintain a competitive edge and drive financial performance.

NRJ Group Financial Statement Overview

Summary

NRJ Group showcases strong financial health with consistent revenue growth, robust profitability margins, and a solid balance sheet characterized by low leverage. Despite minor declines in net profit margin and free cash flow growth, the company's efficient cash flow management and solid equity position mitigate potential risks.

Income Statement

NRJ Group has demonstrated consistent revenue growth, with a notable increase of 1.1% from 2023 to 2024. The company maintains a solid gross profit margin of 71.9% in 2024, reflecting efficient cost management. However, the net profit margin has slightly decreased from 11.0% to 10.1% from 2023 to 2024, suggesting some pressure on profitability. EBIT and EBITDA margins remain stable, indicating healthy operational performance.

Balance Sheet

The balance sheet of NRJ Group is robust, with a strong equity ratio of 77.8%, indicating financial stability and low reliance on debt. The debt-to-equity ratio is a low 0.05, highlighting minimal leverage risks. Additionally, the return on equity (ROE) is healthy at 5.8%, although it has slightly declined from the previous year, reflecting moderate efficiency in generating profits from shareholders' equity.

Cash Flow

NRJ Group shows strong cash flow management with a positive free cash flow, despite a 5.2% decline from 2023 to 2024. The operating cash flow to net income ratio is 1.6, indicating effective cash conversion from earnings. The free cash flow to net income ratio is also favorable at 1.05, suggesting that the company is generating sufficient free cash flow relative to its net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.90M	409.24M	398.10M	378.62M	336.16M
Gross Profit	297.71M	288.63M	96.02M	69.46M	42.58M
EBITDA	91.15M	90.02M	76.63M	67.94M	77.09M
Net Income	41.97M	45.17M	34.68M	27.60M	40.11M
Balance Sheet
Total Assets	925.96M	910.50M	891.96M	880.94M	856.53M
Cash, Cash Equivalents and Short-Term Investments	356.82M	336.98M	325.95M	303.66M	294.39M
Total Debt	38.35M	35.86M	41.27M	43.37M	45.50M
Total Liabilities	205.49M	206.22M	212.61M	222.46M	210.39M
Stockholders Equity	720.07M	703.84M	678.99M	658.14M	645.77M
Cash Flow
Free Cash Flow	44.05M	46.47M	52.87M	39.41M	29.13M
Operating Cash Flow	67.21M	71.77M	69.32M	57.66M	43.75M
Investing Cash Flow	-23.60M	-28.05M	-16.58M	-18.15M	-14.63M
Financing Cash Flow	-23.28M	-21.93M	-30.33M	-30.24M	35.78M

NRJ Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.28
• 50DMA: Negative
• 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:NRG, the sentiment is Neutral. The current price of 7.28 is below the 20-day moving average (MA) of 7.34, below the 50-day MA of 7.36, and above the 200-day MA of 6.87, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:NRG.

NRJ Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRG	79 Outperform	€557.07M	13.28	5.90%	4.03%	1.14%	-7.09%
Sector *	59 Neutral	€5.42B	37.47	37.30%	5.40%	6.88%	-32.24%
0MGL	―	€1.61B	10.94	11.94%	9.72%	―	―
0NQT	―	€1.77B	9.35	9.58%	7.41%	―	―
0IIF	―	€3.19B	8.36	2.26%	1.16%	―	―
6YW	―	€8.70M	4.14	-593.97%	―	―	―
DEEZR	48 Neutral	€152.66M	―		―	4.14%	64.46%

NRJ Group Corporate Events

NRJ GROUP Confirms Continued Eligibility for PEA-PME Scheme

NRJ GROUP has confirmed its continued eligibility for the PEA-PME scheme, which allows its shares to remain in accounts that enjoy tax benefits similar to traditional equity savings plans. This eligibility underscores the company’s market capitalization of under 2 billion euros, maintaining its appeal to investors seeking tax-efficient investment opportunities. The announcement reinforces NRJ GROUP’s stable financial positioning and its commitment to providing value to its stakeholders.