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Tarkett SA (FR:TKTT)
:TKTT

Tarkett (TKTT) AI Stock Analysis

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FR

Tarkett

(LSE:TKTT)

Rating:56Neutral
Price Target:
€17.00
▲(1.80%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 (TKTT) vs. iShares MSCI France ETF (EWQ)

Tarkett Business Overview & Revenue Model

Company DescriptionTarkett S.A., a flooring company, provides flooring and sports surface solutions to business and residential end users worldwide. The company's products include heterogeneous and homogeneous vinyl, laminate, wood, carpet rolls and tiles, linoleum, and artificial grass and tracks. It offers its products for use in the home, education, workplace, health and aged care, stores and shops, hospitality, travel, leisure, marine, aviation, transport, industry and life science, and sports and wellness market segments. The company was founded in 1886 and is based in Paris, France. Tarkett S.A. is a subsidiary of Societe Investissement Deconinck.
How the Company Makes MoneyTarkett makes money primarily through the sale of its flooring and sports surface products across multiple market segments. The company's revenue streams are diversified across commercial and residential building projects, as well as sports facilities. Tarkett leverages its extensive distribution network and partnerships with architects, designers, and construction companies to increase market penetration and sales. Additionally, its focus on sustainable and innovative products allows it to capture a growing demand for eco-friendly building materials, contributing significantly to its earnings.

Tarkett Financial Statement Overview

Summary
Tarkett's financials reveal mixed performance. While the company faces challenges in revenue growth and profitability, as highlighted by a negative net margin and declining revenue, it maintains robust cash flow generation and stable equity levels. The increased leverage and negative return on equity warrant caution, suggesting the need for strategic focus on improving profitability and managing debt levels effectively.
Income Statement
60
Neutral
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
65
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.33B3.36B3.36B2.79B2.63B
Gross Profit650.00M737.50M605.10M550.60M578.80M
EBITDA258.80M230.20M190.00M202.00M248.20M
Net Income-62.60M20.40M-26.00M15.10M-19.10M
Balance Sheet
Total Assets2.48B2.48B2.61B2.42B2.34B
Cash, Cash Equivalents and Short-Term Investments352.40M224.30M220.80M205.40M328.60M
Total Debt790.30M776.10M875.60M681.10M802.40M
Total Liabilities1.66B1.62B1.69B1.58B1.57B
Stockholders Equity818.10M862.70M911.60M840.20M770.30M
Cash Flow
Free Cash Flow191.20M185.60M-115.80M44.80M190.00M
Operating Cash Flow287.20M278.50M-19.10M117.60M264.10M
Investing Cash Flow-125.40M-94.90M-98.10M-68.40M-68.90M
Financing Cash Flow-28.30M-154.30M130.00M-178.40M-1.20M

Tarkett Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.70
Price Trends
50DMA
16.93
Negative
100DMA
16.39
Positive
200DMA
13.44
Positive
Market Momentum
MACD
-0.04
Positive
RSI
34.43
Neutral
STOCH
40.74
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 16.7 is below the 20-day moving average (MA) of 16.92, below the 50-day MA of 16.93, and above the 200-day MA of 13.44, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.43 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 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

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
¥233.22B14.1410.67%4.28%17.32%17.90%
56
Neutral
€1.09B29.10-7.45%-0.93%-407.45%
GBCOD
€48.52B16.4311.75%2.04%
DESFK
€63.32M-13.71%2.19%
DEDJX
€135.59M16.637.26%6.62%
€692.01M28.39
4.62%
€70.82M41.83
1.73%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:TKTT
Tarkett
16.70
8.12
94.64%
GB:COD
Compagnie de Saint Gobain
92.60
16.15
21.12%
DE:SFK
SergeFerrari Group SA
5.34
-0.58
-9.80%
DE:DJX
Piscine Desjoyaux SA
14.80
3.31
28.81%
FR:MLPLC
Placoplatre SA
530.00
99.33
23.06%
FR:ALPJT
Poujoulat SA
8.84
-2.13
-19.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025