Tarkett (TKTT) AI Stock Analysis

• Market Cap: €1.08B
• Dividend Yield: N/A
• Average Volume (3M): 119.63K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.23
• Revenue Growth: -0.93%
• EPS Growth: -407.45%
• Country: FR
• Employees: 11,635
• Sector: Real Estate
• Sector Strength: 66
• Industry: Construction
• EPS (TTM): -1.24
• Shares Outstanding: 65,550,280
• 10 Day Avg. Volume: 2,666
• 30 Day Avg. Volume: 119,634
• PEG Ratio: 0.06
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.68
• 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

• Rating: 56 Neutral
• Price Target: €17.00 ▲(2.41%Upside)

The overall stock score reflects Tarkett's financial challenges, with declining revenues and profitability issues, compounded by technical indicators suggesting bearish momentum. The valuation is also pressured by negative earnings, underscoring the need for strategic improvements.

Tarkett Business Overview & Revenue Model

Company Description

Tarkett (TKTT) is a global leader in innovative flooring and sports surface solutions. The company operates across various sectors, including residential, commercial, and sports, providing a wide range of products such as vinyl, laminate, wood, carpet, linoleum, rubber, and artificial turf. Tarkett is committed to sustainable development, offering eco-friendly solutions and prioritizing the well-being of its customers and the environment.

How the Company Makes Money

Tarkett generates revenue primarily through the sale of its flooring and sports surface products. The company serves a diverse clientele, including residential customers, commercial businesses, and sports facilities. Key revenue streams include direct sales to consumers, partnerships with distributors and retailers, and large-scale commercial and sports projects. Tarkett's earnings are bolstered by its commitment to innovation, sustainable practices, and strategic partnerships with architects, designers, and construction companies. Additionally, the company benefits from economies of scale due to its global presence and extensive product portfolio.

Tarkett Financial Statement Overview

Summary

Tarkett's financials reveal a mixed performance with declining revenue and negative net margins, but solid cash flow generation and stable equity levels. Increased leverage and negative return on equity suggest caution.

Income Statement

Tarkett shows a declining revenue trend with a decrease from EUR 3,363 million in 2023 to EUR 3,331 million in 2024. Gross profit margin decreased to 19.51% in 2024 from 21.93% in 2023, reflecting potential pricing pressure or cost increases. The net profit margin turned negative in 2024 at -1.88%, signaling challenges in profitability. However, the EBITDA margin improved to 7.77% from 6.84%, indicating some operational efficiency gains.

Balance Sheet

The debt-to-equity ratio increased to 0.97 in 2024 from 0.90 in 2023, indicating higher leverage, which could pose financial risk. Return on equity dropped to -7.65% due to negative net income, undermining shareholder returns. Equity ratio remained stable at around 32.92%, showing a consistent capital structure.

Cash Flow

Free cash flow grew slightly by 3.02% to EUR 191 million in 2024, demonstrating solid cash generation. The operating cash flow to net income ratio was negatively impacted due to the net loss, but operating cash flow remained robust at EUR 287 million. The free cash flow to net income ratio is positive, indicating effective cash management despite the net loss.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.33B	3.36B	3.36B	2.79B	2.63B
Gross Profit	650.00M	737.50M	605.10M	550.60M	578.80M
EBITDA	258.80M	230.20M	190.00M	202.00M	248.20M
Net Income	-62.60M	20.40M	-26.00M	15.10M	-19.10M
Balance Sheet
Total Assets	2.48B	2.48B	2.61B	2.42B	2.34B
Cash, Cash Equivalents and Short-Term Investments	352.40M	224.30M	220.80M	205.40M	328.60M
Total Debt	790.30M	776.10M	875.60M	681.10M	802.40M
Total Liabilities	1.66B	1.62B	1.69B	1.58B	1.57B
Stockholders Equity	818.10M	862.70M	911.60M	840.20M	770.30M
Cash Flow
Free Cash Flow	191.20M	185.60M	-115.80M	44.80M	190.00M
Operating Cash Flow	287.20M	278.50M	-19.10M	117.60M	264.10M
Investing Cash Flow	-125.40M	-94.90M	-98.10M	-68.40M	-68.90M
Financing Cash Flow	-28.30M	-154.30M	130.00M	-178.40M	-1.20M

Tarkett Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.60
• 50DMA: Negative
• 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:TKTT, the sentiment is Negative. The current price of 16.6 is below the 20-day moving average (MA) of 16.68, below the 50-day MA of 16.85, and above the 200-day MA of 14.00, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 35.96 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:TKTT.

Tarkett Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGO	72 Outperform	€50.72B	18.05	11.75%	2.15%	-2.86%	8.16%
Sector *	64 Neutral	€2.54B	19.30	3.70%	5.55%	3.72%	-0.02%
SEFER	56 Neutral	€64.49M	―	-13.71%	2.17%	-1.22%	-427.29%
TKTT	56 Neutral	€1.08B	29.10	-7.45%	―	-0.93%	-407.45%