OVH Groupe SAS (OVH) AI Stock Analysis

• Market Cap: €1.50B
• Dividend Yield: N/A
• Average Volume (3M): 95.23K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.49
• 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: -40.21
• Price to Book (P/B): 59.35
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 153.24
• 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: €8.39
• Price Target Upside: -15.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €10.00 ▲(0.40% Upside)

The score is driven primarily by mixed fundamentals: improving operational metrics and strong operating cash flow are offset by very thin net profitability, high leverage, and declining free cash flow. Technicals are supportive but overbought signals add near-term risk, while valuation is weakened by a highly negative P/E and no dividend yield data.

Positive Factors

Revenue & Margin Improvement

Consistent revenue growth (latest +3.99%) paired with improving EBIT/EBITDA margins indicates OVH is increasing operating efficiency. That supports reinvestment capacity and competitive positioning, helping sustain growth and withstand industry pressure over the next several quarters.

Strong Operating Cash Flow

Strong operating cash flow and a favorable operating-cash-to-net-income ratio show OVH converts sales into cash effectively. Durable OCF supports ongoing capex, network expansion, and debt servicing, providing a structural cushion even if reported net profitability remains thin.

Subscription-based Infrastructure Model

OVH’s recurring subscription model across cloud, VPS, dedicated servers and domains creates predictable revenue and customer stickiness. Combined with a data-sovereignty focus and broad infrastructure stack, this supports retention and steady demand in European markets over the medium term.

Negative Factors

Very Thin Net Profitability

An almost zero net margin (~0.04%) leaves minimal earnings buffer. This severely limits retained earnings for capex, debt reduction or strategic investments, making profitability improvements fragile and exposing the firm to cost shocks or competitive price pressure over coming quarters.

High Leverage

High debt-to-equity and elevated leverage reduce financial flexibility. With thin profitability, leverage increases refinancing and interest-rate risk, constraining OVH’s ability to fund expansions or absorb setbacks without raising costly capital or cutting strategic investments.

Declining Free Cash Flow

Material decline in free cash flow undermines the company’s ability to fund data-center investment or pay down debt from internal resources. Even with solid operating cash flow, shrinking FCF signals higher capex or working-capital strain that can pressure liquidity medium term.

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

Steady revenue growth and improving EBIT/EBITDA margins point to better operating efficiency, but profitability remains extremely thin (net margin ~0.04%). Balance sheet leverage is high (elevated debt-to-equity) and free cash flow has declined materially despite strong operating cash flow.

Income Statement

OVH Groupe SAS has shown consistent revenue growth over the years, with a 3.99% increase in the latest period. The gross profit margin has decreased significantly from previous years, indicating rising costs or pricing pressures. The net profit margin is positive for the first time in recent years, which is a positive sign, but remains very low at 0.04%. EBIT and EBITDA margins have improved, suggesting better operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. However, the equity ratio is relatively stable. Return on equity remains low, reflecting challenges in generating returns for shareholders.

Cash Flow

Operating cash flow is strong, showing the company's ability to generate cash from operations. However, free cash flow has declined significantly, which could impact future investments or debt repayments. The operating cash flow to net income ratio is favorable, indicating good cash conversion.

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: Positive
• Last Price: 9.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 9.96 is above the 20-day moving average (MA) of 8.69, above the 50-day MA of 7.96, and below the 200-day MA of 10.44, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 77.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:OVH.

OVH Groupe SAS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALHYP	63 Neutral	€41.04M	29.76	3.47%	―	9.77%	-86.18%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OVH	55 Neutral	€1.50B	-1,916.35	0.19%	―	9.22%	90.39%
ALLIX	53 Neutral	€183.81M	-100.04	-22.79%	―	17.72%	79.71%
WLN	52 Neutral	€404.33M	-0.09	-71.58%	―	-2.35%	-387.75%
VMX	44 Neutral	€16.71M	-0.25	-86.76%	―	-14.91%	-512.12%