Eurazeo (RF) AI Stock Analysis

• Market Cap: €4.09B
• Dividend Yield: 4.85%
• Average Volume (3M): 157.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 11.76%
• EPS Growth: -735.88%
• Country: FR
• Employees: 549
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -4.24
• Shares Outstanding: 71,925,760
• 10 Day Avg. Volume: 147,889
• 30 Day Avg. Volume: 157,155
• PEG Ratio: 0.10
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 13.65
• P/FCF Ratio: -231.49
• 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: €60.00
• Price Target Upside: 9.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €52.00 ▼(-4.85% Downside)

Eurazeo's overall stock score is primarily impacted by financial performance challenges and bearish technical indicators. The negative P/E ratio and high dividend yield present valuation concerns, while the lack of earnings call data and corporate events limits additional insights.

Positive Factors

Business Model Strength

The diversified revenue streams from management fees and carried interest provide a stable income base, supporting long-term financial health.

Market Position

Eurazeo's strong market position as a global investment leader enhances its ability to attract capital and investment opportunities, ensuring sustained growth.

Strategic Partnerships

Strategic partnerships and co-investments help mitigate risks and enhance returns, fostering long-term value creation and competitive advantage.

Negative Factors

Profitability Challenges

Persistent profitability challenges with declining net income and negative margins can hinder reinvestment capabilities and long-term growth.

Cash Flow Issues

Negative free cash flow suggests operational inefficiencies, potentially limiting the company's ability to fund growth initiatives and manage liquidity.

Debt Levels

Rising debt levels and declining equity can strain financial flexibility, impacting the company's ability to navigate economic downturns.

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 generates revenue primarily through its investment management activities. The company capitalizes on its assets under management (AUM) by charging management fees to investors and performance fees based on the returns generated from its investments. Key revenue streams include fees from private equity funds, real estate funds, and other investment vehicles. Additionally, Eurazeo benefits from the appreciation of its portfolio investments, which can lead to significant capital gains upon exit. Strategic partnerships with various institutional investors and co-investment opportunities also play a crucial role in enhancing its capital base and investment capacity, thereby contributing to its earnings.

Eurazeo Financial Statement Overview

Summary

Eurazeo is facing financial headwinds, particularly highlighted by recent income and cash flow challenges. The income statement shows significant volatility with a dramatic decline in net income and negative profit margins. The balance sheet is relatively strong with a high equity ratio, but the decline in stockholders' equity and increase in total debt are risks. Cash flow challenges are evident with consistent negative free cash flow, indicating operational inefficiencies.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.12M	380.85M	404.95M	5.59B	6.15B	3.97B
Gross Profit	1.47M	261.39M	310.33M	2.41B	3.52B	1.71B
EBITDA	-532.15M	-327.05M	1.94B	1.40B	2.82B	886.49M
Net Income	-633.92M	-429.79M	1.82B	594.65M	1.57B	-160.48M
Balance Sheet
Total Assets	8.93B	9.42B	9.77B	18.86B	16.30B	13.83B
Cash, Cash Equivalents and Short-Term Investments	201.73M	123.78M	151.98M	1.08B	1.78B	1.30B
Total Debt	1.63B	1.43B	940.38M	5.91B	4.52B	4.70B
Total Liabilities	2.04B	1.87B	1.41B	9.57B	7.93B	7.73B
Stockholders Equity	6.63B	7.26B	8.10B	6.48B	6.16B	4.67B
Cash Flow
Free Cash Flow	74.41M	-22.45M	-24.18M	-456.67M	-120.11M	-90.97M
Operating Cash Flow	75.22M	-7.04M	-11.61M	-12.02M	139.63M	141.73M
Investing Cash Flow	-81.27M	-25.81M	-1.30B	-341.95M	-485.05M	-741.14M
Financing Cash Flow	-24.52M	-70.93M	390.55M	25.69M	522.08M	688.69M

Eurazeo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RF, the sentiment is Negative. The current price of 54.65 is below the 20-day moving average (MA) of 55.13, below the 50-day MA of 57.31, and below the 200-day MA of 60.08, indicating a bearish trend. The MACD of -0.99 indicates Negative momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 83.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:RF.

Eurazeo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANTIN	76 Outperform	€1.91B	15.43	25.43%	7.07%	9.60%	5.96%
PEUG	75 Outperform	€1.80B	45.17	0.83%	4.46%	-48.21%	-64.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MF	65 Neutral	€3.50B	-38.06	-2.85%	7.79%	9.86%	-118.70%
TKO	61 Neutral	€3.01B	16.56	5.94%	5.26%	12.44%	12.15%
RF	46 Neutral	€4.09B	-6.62	-8.86%	4.85%	11.76%	-735.88%