Patrimoine et Commerce (PAT) AI Stock Analysis

• Market Cap: €385.33M
• Dividend Yield: 5.92%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.39
• Revenue Growth: 15.61%
• EPS Growth: 17.82%
• Country: FR
• Employees: 6
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 1.88
• Shares Outstanding: 16,284,788
• 10 Day Avg. Volume: 385
• 30 Day Avg. Volume: 1,014
• PEG Ratio: -11.69
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 5.12
• P/FCF Ratio: 25.76
• 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): 2.24
• Revenue Forecast (FY): €55.20M

• Rating: 68 Neutral
• Price Target: €26.00 ▲(11.59% Upside)
• Action: Downgraded Date: 03/04/26
• Date: Action: Downgraded 03/04/26

The score is driven primarily by solid financial performance (strong profitability and improving leverage) offset by weaker cash flow consistency. Valuation is supportive due to the low P/E and high dividend yield, while technical indicators are broadly neutral and do not add meaningful momentum support.

Positive Factors

High profit margins

Sustained high gross and net margins imply the business captures durable spreads on leasing and property operations, supporting resilient earnings through cycles. High margins underpin the capacity to fund maintenance, distributions and selective reinvestment even if revenue growth softens.

Improving leverage profile

A material decline in debt-to-equity over several years reduces structural refinancing and solvency risk and improves interest coverage prospects. Gradual deleveraging increases financial flexibility for capital recycling, reinvestment or cushioning against rental downturns.

Recurring rental cash generation

A business model driven by recurring rental income generates baseline cash inflows and positive operating cash flow most years, providing structural ability to service debt and fund property upkeep. Consistent OCF supports a reliable operational foundation despite conversion volatility.

Negative Factors

Weak cash conversion & FCF volatility

Volatile free cash flow and weak conversion of earnings into cash reduce predictability for distributions, capex funding and deleveraging. For a capital‑intensive REIT, inconsistent FCF heightens refinancing risk and constrains strategic spending during adverse cycles.

Softening revenue momentum

A reversal to revenue decline signals pressures on leasing, rent reversion or tenant demand. Sustained top‑line weakness erodes future earnings potential and cash generation, limiting capacity to raise rents, invest in assets, or absorb higher financing costs over the medium term.

Large absolute debt load

Even with improving ratios, a sizable absolute debt stock limits strategic optionality and increases exposure to interest rate moves and covenant constraints. High nominal leverage can restrict acquisitions, refinancing flexibility and amplify downside in property value shocks.

Patrimoine et Commerce Business Overview & Revenue Model

Company Description

Patrimoine et Commerce SA, a real estate company, engages in the acquisition, development, and operation of commercial real estate properties in France. The company operates a portfolio of 31 real estate assets covering a total area of 129,280 square meters located in high-attraction areas in the suburbs or centers of medium-sized cities. Its property portfolio includes shopping malls, supermarkets, shops, and business parks. The company is based in Boulogne-Billancourt, France.

How the Company Makes Money

Patrimoine et Commerce generates revenue through several key streams, primarily from leasing commercial spaces to retail tenants, which provides a steady income from rental payments. Additionally, the company profits from property sales and capital appreciation as the value of its real estate assets increases over time. Significant partnerships with retail brands and other stakeholders in the commercial real estate sector enhance PAT's market position and profitability. Furthermore, the company may engage in redevelopment projects that increase the value of existing properties, contributing to higher returns on investment.

Patrimoine et Commerce Financial Statement Overview

Summary

Strong reported profitability with high margins and a gradually improving leverage profile (debt-to-equity declining over time), but cash flow quality is a key weakness: operating cash flow coverage of earnings is uneven and free cash flow has been volatile (including a decline in 2025).

Income Statement

Profitability is strong, with consistently high gross and net margins across the period; 2025 net margin remains elevated (~58%). Revenue has grown over the multi-year window, but momentum softened with 2025 revenue down (-2.679%) after modest growth in 2023–2024. Earnings are positive and relatively stable overall, though results show some volatility (notably the unusually high 2022 net margin), which reduces predictability.

Balance Sheet

Leverage is meaningful but improving: debt-to-equity moved down from ~1.19 (2020) to ~0.86 (2025), while equity increased over time. Total assets have grown versus earlier years, supporting scale. Return on equity is steady in the mid-to-high single digits (~8% in 2024–2025), which is respectable, but the absolute debt load remains large and keeps financial flexibility more constrained than a lower-leverage peer.

Cash Flow

Operating cash flow is consistently positive, but cash conversion is uneven: operating cash flow covers only ~68% of 2025 earnings, and coverage was notably weaker in prior years. Free cash flow is positive in most years, but it was negative in 2022 and declined again in 2025 (free cash flow down ~19%). Overall, cash generation is adequate but less consistent than reported profits, which is a key watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	71.90M	70.67M	61.57M	57.65M	54.82M
Gross Profit	52.90M	52.38M	46.66M	44.60M	41.71M
EBITDA	54.80M	43.86M	40.29M	38.10M	36.18M
Net Income	41.90M	40.97M	29.03M	47.81M	31.52M
Balance Sheet
Total Assets	981.00M	959.11M	906.55M	920.64M	882.13M
Cash, Cash Equivalents and Short-Term Investments	19.50M	18.88M	27.94M	55.21M	50.79M
Total Debt	429.00M	426.26M	415.64M	430.73M	420.12M
Total Liabilities	473.10M	469.58M	455.83M	476.60M	467.39M
Stockholders Equity	498.00M	478.49M	439.25M	431.23M	400.17M
Cash Flow
Free Cash Flow	14.30M	17.14M	21.87M	-29.15M	20.07M
Operating Cash Flow	31.20M	44.00M	41.08M	32.30M	36.08M
Investing Cash Flow	-9.90M	-28.60M	-17.66M	-22.23M	3.17M
Financing Cash Flow	-20.70M	-24.53M	-50.68M	-5.60M	-54.62M

Patrimoine et Commerce Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:PAT, the sentiment is Negative. The current price of 23.3 is below the 20-day moving average (MA) of 24.10, below the 50-day MA of 23.89, and below the 200-day MA of 23.80, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:PAT.

Patrimoine et Commerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMDA	73 Outperform	€381.37M	9.76	―	3.91%	-2.53%	―
PAT	68 Neutral	€385.33M	9.06	―	5.92%	15.61%	17.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FREY	65 Neutral	€998.61M	157.68	0.61%	6.51%	8.81%	-78.28%
INEA	63 Neutral	€374.00M	76.18	―	8.06%	10.30%	―
SELER	59 Neutral	€333.40M	9.80	―	4.94%	-6.93%	58.90%