TFF Group (TFF) AI Stock Analysis

• Market Cap: €509.28M
• Dividend Yield: 2.55%
• Average Volume (3M): 2.59K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.17
• Revenue Growth: -1.90%
• EPS Growth: -26.74%
• Country: FR
• Employees: 1,802
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Packaging & Containers
• EPS (TTM): 0.37
• Shares Outstanding: 21,680,000
• 10 Day Avg. Volume: 2,122
• 30 Day Avg. Volume: 2,592
• PEG Ratio: 0.36
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -30.85
• 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: €26.00
• Price Target Upside: 10.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: €26.00 ▲(10.64%Upside)

TFF Group's overall stock score is driven by strong financial performance, particularly in revenue and gross profit growth. Valuation metrics suggest the stock is attractively priced, enhancing its appeal. However, technical analysis presents mixed signals, reflecting some uncertainty in market sentiment. Addressing cash flow challenges could further strengthen the company's financial health.

TFF Group Business Overview & Revenue Model

Company Description

TFF Group manufactures and distributes barrels and wood products for the aging of wines, spirits, and alcohols in France, rest of Europe, Australasia, the United States, and internationally. The company also offers staves, cooperages, casks, wood and oenological products, and stainless steel containers. It primarily serves wine, whisky, and bourbon markets. The company was formerly known as Tonnellerie François Frères. TFF Group was founded in 1910 and is based in Saint-Romain, France.

How the Company Makes Money

TFF Group primarily generates revenue through the manufacturing and sale of oak barrels and other wood products tailored for the wine and spirits sectors. The company's key revenue streams include direct sales to vineyards, distilleries, and breweries, along with the export of its products to international markets. Additionally, TFF Group benefits from strategic partnerships with beverage producers, which enhance its distribution network and market reach. The company's earnings are significantly influenced by the global demand for premium beverages and the traditional aging processes that rely on oak barrels.

TFF Group Financial Statement Overview

Summary

TFF Group demonstrates strong revenue and gross profit growth, indicating healthy demand and efficient operations. Profitability metrics reveal areas for improvement, but the balance sheet suggests financial stability with manageable leverage. Cash flow management is challenging, impacting overall financial health.

Income Statement

TFF Group shows strong revenue growth with a 10.63% increase from the previous year, indicating robust demand for its products. The gross profit margin improved significantly to 54.54%, reflecting efficient cost management. However, the net profit margin stands at 11.60%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy at 18.86% and 23.42% respectively, indicating solid operational performance.

Balance Sheet

TFF Group maintains a stable financial position with a debt-to-equity ratio of 0.73, indicating manageable leverage. The equity ratio is 50.55%, suggesting a strong equity base relative to total assets. Return on equity is 11.52%, reflecting decent returns on shareholder investments. Overall, the balance sheet indicates financial stability with potential for increased returns.

Cash Flow

Cash flow analysis shows challenges, with a negative free cash flow growth rate due to high capital expenditures. Operating cash flow to net income ratio is low, indicating potential cash flow management issues. The free cash flow to net income ratio is negative, highlighting the need for better cash flow control and investment strategy.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	462.50M	486.55M	439.79M	302.62M	260.88M	279.66M
Gross Profit	200.78M	265.30M	81.33M	39.62M	37.30M	45.92M
EBITDA	96.00M	113.93M	89.10M	50.63M	49.05M	48.33M
Net Income	40.33M	56.45M	52.82M	35.86M	20.04M	26.64M
Balance Sheet
Total Assets	1.01B	968.99M	843.55M	735.00M	659.67M	668.27M
Cash, Cash Equivalents and Short-Term Investments	87.71M	92.94M	102.34M	97.58M	94.64M	82.02M
Total Debt	388.37M	359.53M	286.50M	234.44M	232.65M	250.75M
Total Liabilities	476.16M	457.86M	381.31M	308.88M	285.93M	303.08M
Stockholders Equity	497.99M	489.70M	442.45M	407.54M	368.34M	360.59M
Cash Flow
Free Cash Flow	-23.21M	-55.72M	-29.16M	17.98M	40.40M	-60.26M
Operating Cash Flow	14.23M	3.54M	-1.73M	29.93M	48.27M	-10.95M
Investing Cash Flow	-44.11M	-70.38M	-28.68M	-23.53M	-10.19M	-48.52M
Financing Cash Flow	41.66M	56.21M	38.98M	-7.52M	-24.95M	85.31M

TFF Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:TFF, the sentiment is Negative. The current price of 23.5 is below the 20-day moving average (MA) of 23.62, above the 50-day MA of 23.36, and below the 200-day MA of 26.67, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 65.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:TFF.

TFF Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFF	70 Outperform	€509.28M	12.79		2.55%	-1.90%	-26.74%
Sector *	66 Neutral	€8.29B	15.33	8.46%	3.13%	4.03%	-26.96%
0NW1		€1.58B	9.46	8.49%	5.63%	―	―
HBS		€64.43M	―	-0.08%	3.35%	―	―
2HU		€107.15M	4.35	26.21%	5.16%	―	―
ALBI		€91.09M	―		―	―	―
VRLA	75 Outperform	€3.41B	14.06		6.02%	-11.47%	-49.98%

TFF Group Corporate Events

TFF Group Reports Revenue Decline Amid Market Challenges

TFF Group reports a decline in revenue for the first nine months of the 2024/2025 fiscal year, with both the wine and alcohol divisions experiencing reduced sales due to market normalization post-COVID and overstocking issues. Despite these challenges, the company remains confident in its ability to adapt and anticipates a medium-term recovery, supported by favorable exchange rates and external growth contributions.