OVH Groupe SAS (OVH) AI Stock Analysis

• Market Cap: €1.03B
• Dividend Yield: N/A
• Average Volume (3M): 95.23K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.37
• Revenue Growth: 9.22%
• EPS Growth: 90.39%
• Country: FR
• Employees: 3,018
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.04
• Shares Outstanding: 151,651,540
• 10 Day Avg. Volume: 62,041
• 30 Day Avg. Volume: 95,230
• PEG Ratio: 0.00
• 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: €8.81
• Price Target Upside: 28.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €7.00 ▲(1.74% Upside)

OVH Groupe SAS faces significant challenges, with high leverage and weak valuation metrics being the most pressing concerns. While there is steady revenue growth and improving profitability, the technical indicators suggest bearish momentum. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong demand for OVH's services, supporting long-term business expansion and market position.

Cash Generation

Robust operating cash flow enhances OVH's ability to reinvest in growth opportunities and manage financial obligations effectively.

Profitability Improvement

Improved margins reflect enhanced operational efficiency, which can lead to sustainable profitability and competitive advantage.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting OVH's flexibility to invest in growth or weather economic downturns.

Declining Free Cash Flow

Reduced free cash flow may constrain OVH's ability to fund new initiatives or reduce debt, affecting long-term growth prospects.

Tight Margins

Decreasing margins suggest cost pressures or competitive pricing, which could hinder profitability and market competitiveness.

OVH Groupe SAS Business Overview & Revenue Model

Company Description

OVH Groupe SAS provides public and private cloud, shared hosting, and dedicated server products and solutions worldwide. The company offers Bare Metal Cloud, an instant provisioning and automated access to dedicated servers; Hosted Private Cloud, which are software defined data center services; Public Cloud that provides computing services on shared servers; and web cloud services to help individuals and companies to start and enhance their digital journey. It also offers domain name registration, telephony, and internet access services. The company operates approximately 400,000 servers within 33 data centers. OVH Groupe SAS was founded in 1999 and is based in Roubaix, France.

How the Company Makes Money

OVH makes money primarily through its cloud computing and web hosting services. The company generates revenue by offering a variety of cloud solutions, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). These services cater to businesses of all sizes, from small enterprises to large corporations, providing them with the necessary infrastructure to manage and scale their operations online. OVH's revenue streams are bolstered by the sale of dedicated servers, virtual private servers, and additional services like domain registration and email hosting. Furthermore, OVH collaborates with strategic partners and invests in data center expansion to enhance its service offerings and reach, contributing to its financial performance.

OVH Groupe SAS Financial Statement Overview

Summary

OVH Groupe SAS demonstrates strong revenue growth and operational improvements, yet struggles with profitability and high leverage. Cash flow management remains a strength, but financial risk from debt levels requires careful monitoring. The company should focus on improving margins and reducing dependency on debt to enhance financial stability.

Income Statement

The company has shown consistent revenue growth over the years, with a 10.7% increase in 2024 compared to the previous year. However, their net profit margin is negative, indicating a challenge in converting revenue into profit. The EBIT margin has improved, suggesting better operational efficiency, yet the company remains unprofitable overall.

Balance Sheet

OVH Groupe SAS has a high debt-to-equity ratio of approximately 2.19, indicating significant leverage which could pose financial risks. The return on equity is negative due to net losses, while the equity ratio is relatively low at about 23.5%, reflecting higher reliance on debt for financing.

Cash Flow

Positive free cash flow indicates good cash generation, though growth in free cash flow remains volatile. The operating cash flow to net income ratio is strong, suggesting efficient cash management despite net losses. However, the free cash flow to net income ratio is less reliable due to negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	1.08B	993.05M	897.30M	788.00M	663.31M
Gross Profit	767.23M	240.40M	185.74M	542.40M	421.86M	345.26M
EBITDA	307.87M	420.00M	368.37M	301.45M	261.27M	233.53M
Net Income	14.15M	400.00K	-10.30M	-40.32M	-28.55M	-32.34M
Balance Sheet
Total Assets	1.80B	1.71B	1.67B	1.60B	1.44B	1.25B
Cash, Cash Equivalents and Short-Term Investments	106.85M	41.90M	40.92M	49.00M	36.19M	53.61M
Total Debt	1.30B	117.30M	861.40M	783.86M	603.94M	762.24M
Total Liabilities	1.74B	1.67B	1.28B	1.19B	974.40M	1.15B
Stockholders Equity	55.41M	28.40M	392.99M	410.98M	468.35M	105.61M
Cash Flow
Free Cash Flow	40.28M	11.00M	25.10M	-27.95M	-179.32M	-75.01M
Operating Cash Flow	421.59M	379.90M	368.21M	329.84M	274.12M	268.22M
Investing Cash Flow	-373.02M	-361.80M	-369.28M	-357.78M	-469.06M	-354.49M
Financing Cash Flow	10.97M	-18.90M	-7.05M	41.84M	176.46M	54.61M

OVH Groupe SAS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:OVH, the sentiment is Negative. The current price of 6.88 is below the 20-day moving average (MA) of 7.71, below the 50-day MA of 8.56, and below the 200-day MA of 10.55, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 35.25 is Neutral, neither overbought nor oversold. The STOCH value of 21.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:OVH.

OVH Groupe SAS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALHYP	58 Neutral	€51.65M	37.36	3.47%	―	9.77%	-86.18%
ALLIX	53 Neutral	€150.54M	-81.38	-22.79%	―	17.72%	79.71%
WLN	52 Neutral	€464.94M	-0.09	-71.58%	―	-2.35%	-387.75%
OVH	46 Neutral	€1.03B	-1,323.08	0.19%	―	9.22%	90.39%
VMX	44 Neutral	€17.06M	-0.26	-86.76%	―	-14.91%	-512.12%