Eurazeo (RF) AI Stock Analysis

• Market Cap: €4.38B
• Dividend Yield: 4.3%
• Average Volume (3M): 122.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -83.07%
• EPS Growth: -123.07%
• Country: FR
• Employees: 549
• Sector: Real Estate
• Sector Strength: 64
• Industry: Asset Management
• EPS (TTM): -4.36
• Shares Outstanding: 73,085,760
• 10 Day Avg. Volume: 134,340
• 30 Day Avg. Volume: 122,573
• PEG Ratio: -0.11
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.09
• 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: €97.50
• Price Target Upside: 57.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: €66.00 ▲(6.54%Upside)

Eurazeo's overall score is primarily impacted by financial performance challenges, with negative margins and cash flow issues being significant concerns. Technical analysis suggests some downward pressure, and valuation is affected by recent profitability problems. While the dividend yield provides some attractiveness, the overall outlook remains cautious.

Eurazeo Business Overview & Revenue Model

Company Description

Eurazeo SE is a private equity and venture capital firm specializing in growth capital, acquisitions, leveraged buyouts, and buyins of a private company, and investments in mid-market and listed public companies. . The company invest in equity in the small-mid and Mid-large buyout segments. The firm seeks to invest in medium-sized or large companies, SMEs, high growth companies, and real estate management and investment activities. It does not have any restrictions regarding the sectors in which it invests but prefers to invest in smart cities, services, leisure and mobility, real estate, fintech, investment activities, distribution, industry, luxury, consumer goods, business services, consumer and retail brands, and health sectors. The firm seeks to invest in consumer brands with a focus on beauty, personal care, household care, juvenile products, apparel, wellness, accessories, home, jewelry, leisure, health, fitness, beverage, and food companies based in United States and Europe. It typically invests in companies with a differentiated concept and global growth potential. The firm identifies companies upstream, carefully selecting them primarily from sectors driven by digital transformation and focusing on changes in lifestyle and consumption (mobility, online buying, collaboration models, etc.). The firm invests in large properties in need of restructuring; residential, commercial, and office development projects; and companies with real estate assets in Western Europe. It primarily invests in United States, France, Italy, North America and other European countries. The firm typically invests between $10 million and €800 million ($892.55 million) in companies with enterprise values of more than €150/200 million ($163.74 million/$218.30 million) and €5000 million ($7108.9 million). It limits each investment to less than 10 percent to 15 percent of its net asset value. The firm can also invest where its equity or quasi-equity stake is between €175 million ($195.25 million) and €800 million ($892.55 million). The firm prefers to make investments with transactions above $100 million as co-investments. It prefers to acquire majority stakes in its portfolio companies along with minority stakes. The firm may invest in public companies either taking the public company to private, and then doing a leveraged buyout or in the form of private investment in public equity (PIPE). The firm invests for a period of five to seven years. It exits its investment by sale to a manufacturer, sale to a financial investor, or through an IPO. Eurazeo SE was founded in 1969 and is based in Paris, France with additional offices in North America, Asia, Europe and South America.

How the Company Makes Money

Eurazeo makes money primarily through its investment activities. The company generates revenue by acquiring stakes in promising businesses and selling them at a profit after driving value creation and operational improvements. Eurazeo also earns management fees and performance fees from managing investment funds for institutional and private investors. Additionally, Eurazeo may receive dividends from the companies in which it holds equity stakes. Key factors contributing to its earnings include strategic partnerships with co-investors, successful exits from portfolio companies, and the ability to identify and invest in high-growth sectors.

Eurazeo Financial Statement Overview

Summary

Eurazeo faces financial headwinds with negative net profit margins and operational inefficiencies. Despite strong equity and manageable leverage, the recent decline in profitability and cash flow challenges are concerning.

Income Statement

Eurazeo's income statement reveals significant volatility. The gross profit margin improved in 2024, yet the company faced a dramatic decline in net income, resulting in a negative net profit margin. Revenue growth has been inconsistent, with a substantial drop in 2024. EBIT and EBITDA margins for 2024 were negative, indicating operational challenges. Past performance shows some profitability with positive margins, but the recent downturn is concerning.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio, suggesting financial stability. Debt-to-equity ratio is manageable, indicating controlled leverage. However, the decline in stockholders' equity from 2023 to 2024 and the increase in total debt are potential risks. Return on equity was strong in previous years but turned negative in 2024, reflecting recent profitability issues.

Cash Flow

Eurazeo's cash flow statement highlights challenges in generating positive free cash flow, with consistent negative values. Operating cash flow has been persistently negative, indicating operational inefficiencies. The free cash flow to net income ratio is unfavorable due to negative net income and cash flow, which may pose liquidity concerns if not addressed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
380.85M	404.95M	5.59B	6.27B	4.08B
	Gross Profit
261.39M	310.33M	2.41B	3.16B	1.46B
	EBIT
-349.66M	1.91B	1.12B	2.33B	602.20M
	EBITDA
-327.05M	2.00B	1.55B	2.82B	886.49M
	Net Income Common Stockholders
-429.79M	1.82B	594.65M	1.57B	-160.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
123.78M	151.98M	1.08B	1.78B	1.30B
	Total Assets
9.42B	9.77B	18.86B	16.30B	13.83B
	Total Debt
1.43B	940.38M	5.91B	4.52B	4.70B
	Net Debt
1.34B	822.94M	4.86B	3.16B	3.54B
	Total Liabilities
1.87B	1.41B	9.57B	7.93B	7.73B
	Stockholders Equity
7.26B	8.10B	6.48B	6.16B	4.67B
Cash Flow		Free Cash Flow
-22.45M	-24.18M	-456.67M	-120.11M	-90.97M
	Operating Cash Flow
-7.04M	-11.61M	-12.02M	139.63M	141.73M
	Investing Cash Flow
-23.99M	-1.30B	-341.95M	-485.05M	-741.14M
	Financing Cash Flow
3.17M	390.55M	25.69M	522.08M	688.69M

Eurazeo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.95
• 50DMA: Positive
• 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:RF, the sentiment is Neutral. The current price of 61.95 is below the 20-day moving average (MA) of 62.50, above the 50-day MA of 60.91, and below the 200-day MA of 67.65, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 52.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:RF.

Eurazeo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.85B	10.96	0.41%	8438.88%	5.73%	-21.25%
RF	55 Neutral	€4.38B	―	-5.60%	4.30%	-83.07%	-123.07%
0HV8		€1.86B	12.75	2.80%	4.37%	―	―
0I0P		€531.61M	25.57	2.74%	3.99%	―	―
0HZD		€3.75B	12.61	-13.50%	5.47%	―	―
7TI		€3.29B	21.27	4.85%	4.25%	―	―
8ZU		€2.01B	15.19	26.49%	6.51%	―	―

Eurazeo Corporate Events

Eurazeo Registers 2024 Universal Registration Document

Eurazeo has registered its 2024 Universal Registration Document with the French Market Authorities, which includes key financial reports and corporate governance details. This document’s release underlines Eurazeo’s commitment to transparency and regulatory compliance, potentially enhancing stakeholder confidence and reinforcing its market position.

Eurazeo Partners with Metrobloks for €100 Million Data Center Expansion

Eurazeo has announced a €100 million strategic partnership with Metrobloks to develop next-generation data centers in Europe. This collaboration aims to enhance Eurazeo’s position in the rapidly expanding data center sector by focusing on sustainable and high-growth real estate, with a commitment to reducing carbon footprints and improving energy efficiency.

Eurazeo Announces Leadership Transition with Olivier Millet’s Departure

Eurazeo announced the resignation of Olivier Millet, a key figure in their executive team, as part of a successful management transition. Millet, who has been instrumental in developing Eurazeo’s mid-market investment strategy and expanding its European presence, will be succeeded by Pierre Meignen. The transition is part of a strategic plan to continue Eurazeo’s growth and maintain its strong market position.