OVH Groupe SAS (OVH) AI Stock Analysis

• Market Cap: €1.24B
• Dividend Yield: N/A
• Average Volume (3M): 95.23K
• Price to Earnings (P/E): 3169.2
• Beta (1Y): -0.35
• Revenue Growth: 9.22%
• EPS Growth: N/A
• 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: 1.62
• Price to Book (P/B): 3.23
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 50.62
• 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: €10.25
• Price Target Upside: 24.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: €11.00 ▲(33.17% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. Strong revenue growth and operational improvements are offset by profitability challenges and high leverage. Technical indicators suggest a lack of momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Negative Factors

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	993.05M	897.30M	788.00M	663.31M	632.12M
Gross Profit	767.23M	185.74M	542.40M	421.86M	345.26M	346.19M
EBITDA	307.87M	368.37M	301.45M	261.27M	233.53M	239.19M
Net Income	14.15M	-10.30M	-40.32M	-28.55M	-32.34M	-11.31M
Balance Sheet
Total Assets	1.80B	1.67B	1.60B	1.44B	1.25B	1.06B
Cash, Cash Equivalents and Short-Term Investments	106.85M	40.92M	49.00M	36.19M	53.61M	90.84M
Total Debt	1.30B	861.40M	783.86M	603.94M	762.24M	666.40M
Total Liabilities	1.74B	1.28B	1.19B	974.40M	1.15B	934.75M
Stockholders Equity	55.41M	392.99M	410.98M	468.35M	105.61M	120.38M
Cash Flow
Free Cash Flow	40.28M	25.10M	-27.95M	-179.32M	-75.01M	-9.85M
Operating Cash Flow	421.59M	368.21M	329.84M	274.12M	268.22M	270.44M
Investing Cash Flow	-373.02M	-369.28M	-357.78M	-469.06M	-354.49M	-299.90M
Financing Cash Flow	10.97M	-7.05M	41.84M	176.46M	54.61M	90.96M

OVH Groupe SAS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 8.26 is below the 20-day moving average (MA) of 10.88, below the 50-day MA of 11.06, and below the 200-day MA of 10.58, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 20.22 is Positive, neither overbought nor oversold. The STOCH value of 3.62 is Positive, 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
ALHYP	―	€61.62M	44.69	3.47%	―	9.77%	-86.18%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OVH	―	€1.24B	3,169.23	0.19%	―	9.22%	―
WLN	―	€721.70M	-0.16	-71.58%	―	-2.35%	-387.75%
ALLIX	―	€172.30M	―	-21.96%	―	17.72%	80.18%
VMX	―	€15.92M	-0.24	-86.76%	―	-14.91%	-512.12%