Groupe Partouche SA (PARP) AI Stock Analysis

• Market Cap: €171.61M
• Dividend Yield: 1.78%
• Average Volume (3M): 871.00
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.35
• Revenue Growth: 4.23%
• EPS Growth: 17.85%
• Country: FR
• Employees: 3,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 4.00
• Shares Outstanding: 9,627,034
• 10 Day Avg. Volume: 1,038
• 30 Day Avg. Volume: 871
• PEG Ratio: <0.01
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -3.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.51
• Revenue Forecast (FY): €470.08M

• Rating: 61 Neutral
• Price Target: €19.00 ▲(5.56% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is primarily held back by higher financial risk (materially increased leverage) and negative free cash flow despite improved operating results. Technicals are neutral and do not add strong support. These risks are partially offset by a very low P/E, suggesting attractive headline valuation.

Positive Factors

Revenue recovery and improved 2025 profitability

Sustained revenue above pre-recovery levels and a meaningful net margin improvement in 2025 indicate the core casino business and hospitality mix can generate durable operating profits as footfall normalizes. This supports earnings resilience across medium-term cycles and underpins cash generation potential if maintained.

Positive operating cash flow

Consistent and growing operating cash flow demonstrates underlying earnings quality and provides a base for liquidity and reinvestment. Even with capex or financing needs, positive operating cash generation reduces dependence on external funding and supports medium-term operational stability.

Larger asset base and growing equity

A rising equity base and expanded asset footprint improve financial flexibility and collateral capacity for future funding. Stronger equity cushions downside risk and supports strategic investments in properties or hospitality services that sustain competitive position in the medium term.

Negative Factors

Material increase in leverage

A sharp leverage build raises financial risk and reduces flexibility to absorb revenue shocks or fund investments without costly refinancing. Elevated debt magnifies downturn sensitivity and increases fixed obligations, making sustainable margin delivery and cash conversion more critical over the medium term.

Deeply negative free cash flow

Negative free cash flow despite positive operating cash flow signals heavy investment or financing outflows that erode liquidity. Persistent FCF deficits will pressure debt servicing and limit ability to self-fund renovations or growth, potentially forcing asset sales or external funding in the medium term.

Earnings and margin volatility

Large swings in profitability imply sensitivity to cyclical visitation, regulatory/tax changes, or cost structure variability. This earnings volatility undermines predictability for funding and planning, increasing the risk that short-term shocks could reverse recent profitability without structural margin improvements.

Groupe Partouche SA Business Overview & Revenue Model

Company Description

Groupe Partouche SA, through its subsidiaries, operates casinos, hotels, restaurants, dancehalls, and bars in France, other European countries, and internationally. The company operates through three divisions: Casino, Hotel, and Other Activities. Its casinos offer table games, such as the ball game; French, English, or American roulette; the Battle War; Punto Banco; Blockjack; Stud Poker; Casino and Texas Hold'em Poker; Omaha Poker 4 high; Bingo; electronic roulette, Blackjack, and Texas Hold'em Poker, as well as slot machines. The company also owns and operates diners, gourmet and themed restaurants, and health spas and golf courses; develops interactive television (TV) programs and mobile TV gaming offerings; interactive television games associated with online gaming offering; markets gaming solutions and lotteries; and produces televised programs and events. In addition, it operates Quarisma, a platform for the real time management of quality services between customers and casino operators; and manages casino information systems, as well as hardware and data communication networks. Further, the company engages in real estate and sports betting businesses. As of October 31, 2021, it operated 41 casinos with 4,815 slot machines installed in France and 436 machines installed internationally, as well as 1,207 electronic English roulette wheels installed in France and 22 wheels installed internationally; 8 hotels with approximately 310 rooms; and 60 restaurants, as well as 5 health spas and 1 golf courses. The company was incorporated in 1903 and is headquartered in Paris, France. Groupe Partouche SA is a subsidiary of Financiere Partouche SA.

How the Company Makes Money

Groupe Partouche generates revenue primarily through its casino operations, which include slot machines, table games, and poker rooms. The company earns income from the gaming activities of its patrons, with a significant portion coming from the high turnover of slot machines and table games. Additionally, Groupe Partouche benefits from ancillary services such as dining, entertainment, and hotel accommodations, which contribute to its overall revenue. The company also engages in online gaming, further diversifying its income streams. Partnerships with technology providers and strategic alliances within the gaming industry enhance its offerings and market reach, thereby supporting its revenue growth.

Groupe Partouche SA Financial Statement Overview

Summary

Income statement shows a strong 2025 rebound (net margin ~11.1%), but financial strength is constrained by a sharp 2025 leverage step-up (debt ~1.40x equity) and weak cash conversion with deeply negative free cash flow in 2024–2025 despite positive operating cash flow.

Income Statement

Revenue has recovered strongly from the 2020–2021 downturn, reaching 460.2M in 2025 (+3.0% YoY) and remaining above pre-recovery levels. Profitability improved materially in 2025 with net income rising to 51.1M (11.1% net margin) versus near break-even in 2024 (0.3% net margin), and operating profitability also expanded sharply. Key weakness is volatility: margins and earnings swung from losses in 2020–2021 to strong profits in 2022, softened in 2023–2024, then rebounded in 2025—suggesting earnings are not yet consistently stable.

Balance Sheet

Leverage increased significantly in 2025: total debt rose to 546.0M from 298.0M in 2024, pushing debt relative to equity to ~1.40x (up from ~0.87x). Equity has grown over time (to 389.2M in 2025), but the pace of debt build materially raises balance-sheet risk and reduces flexibility if operating conditions soften. Asset base expanded to 1.03B, yet the higher debt load is the dominant balance-sheet consideration.

Cash Flow

Operating cash flow is positive and improved to 72.8M in 2025 (from 62.8M in 2024), which supports baseline liquidity. However, free cash flow turned deeply negative in 2024–2025 (2025: -59.8M; 2024: -28.8M) after being positive in 2022–2023, indicating heavy cash outflows (likely investment or other funding needs) are overwhelming operating inflows. The cash conversion is a key concern, with free cash flow not covering net income in 2024–2025.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	460.20M	434.30M	423.81M	388.77M	255.70M
Gross Profit	64.30M	103.80M	143.61M	116.34M	12.49M
EBITDA	147.70M	76.41M	81.13M	96.14M	12.09M
Net Income	51.10M	1.10M	18.90M	34.20M	-51.94M
Balance Sheet
Total Assets	1.03B	845.08M	804.34M	798.33M	796.38M
Cash, Cash Equivalents and Short-Term Investments	164.05M	117.17M	149.36M	166.87M	178.81M
Total Debt	545.95M	297.99M	269.29M	277.39M	286.98M
Total Liabilities	618.12M	480.11M	437.47M	444.31M	480.96M
Stockholders Equity	389.17M	341.26M	346.52M	333.45M	297.88M
Cash Flow
Free Cash Flow	-59.80M	-28.80M	11.50M	36.98M	3.59M
Operating Cash Flow	72.84M	62.80M	66.30M	78.56M	37.58M
Investing Cash Flow	-108.52M	-93.20M	-59.40M	-16.20M	-30.45M
Financing Cash Flow	82.59M	-1.85M	-24.65M	-75.60M	33.41M

Groupe Partouche SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.00
• 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:PARP, the sentiment is Negative. The current price of 18 is above the 20-day moving average (MA) of 17.95, below the 50-day MA of 18.02, and below the 200-day MA of 18.63, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:PARP.

Groupe Partouche SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PARP	61 Neutral	€171.61M	3.36	2.48%	1.78%	4.23%	17.85%
FDJU	56 Neutral	€4.74B	26.99	―	8.77%	26.91%	-28.35%
ALLHB	56 Neutral	€174.38M	41.02	―	0.41%	-7.92%	-15.45%