Tarkett (TKTT) AI Stock Analysis

• Market Cap: €1.09B
• Dividend Yield: N/A
• Average Volume (3M): 2.52K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.18
• Revenue Growth: 1.00%
• EPS Growth: -327.58%
• Country: FR
• Employees: 11,635
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 65,550,280
• 10 Day Avg. Volume: 2,384
• 30 Day Avg. Volume: 2,518
• PEG Ratio: 0.03
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 3.60
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: €18.00 ▲(8.11% Upside)

Tarkett's overall stock score of 64 reflects a mixed financial performance with strong cash flow but challenges in profitability and leverage. Technical analysis suggests moderate positive momentum, while valuation concerns arise from a negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events limits additional insights.

Tarkett Business Overview & Revenue Model

Company Description

Tarkett 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 Money

Tarkett generates revenue primarily through the sale of its flooring and sports surface products to a diverse customer base, which includes contractors, architects, and end-users in the residential and commercial sectors. Key revenue streams come from both new construction projects and renovation activities. The company also benefits from strategic partnerships with distributors and retailers that broaden its market reach. Additional income is derived from value-added services such as design consultation and installation assistance, which enhance customer experience and loyalty. Tarkett's focus on innovation and sustainability positions it to capitalize on emerging market trends, contributing to its overall earnings.

Tarkett Financial Statement Overview

Summary

Tarkett's financials show mixed results. The company faces challenges with declining revenue and a negative net profit margin, indicating profitability issues. However, it demonstrates solid cash flow generation and stable equity levels. Increased leverage and negative return on equity are concerns, suggesting a need for strategic focus on profitability and debt management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.35B	3.33B	3.36B	3.36B	2.79B	2.63B
Gross Profit	771.70M	650.00M	737.50M	605.10M	550.60M	578.80M
EBITDA	268.30M	258.80M	247.70M	190.00M	223.70M	243.40M
Net Income	-80.80M	-62.60M	20.40M	-26.80M	15.10M	-19.10M
Balance Sheet
Total Assets	2.51B	2.48B	2.48B	2.61B	2.42B	2.34B
Cash, Cash Equivalents and Short-Term Investments	222.70M	352.40M	224.30M	220.80M	205.40M	328.60M
Total Debt	839.20M	790.30M	776.10M	875.60M	681.10M	802.40M
Total Liabilities	1.74B	1.66B	1.62B	1.69B	1.58B	1.57B
Stockholders Equity	764.80M	818.10M	862.70M	911.60M	840.20M	770.30M
Cash Flow
Free Cash Flow	133.30M	191.20M	185.60M	-115.80M	44.80M	190.00M
Operating Cash Flow	235.00M	287.20M	278.50M	-19.10M	117.60M	264.10M
Investing Cash Flow	-196.80M	-125.40M	-94.90M	-98.10M	-68.40M	-68.90M
Financing Cash Flow	15.40M	-28.30M	-154.30M	130.00M	-178.40M	-1.20M

Tarkett Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 16.65 is above the 20-day moving average (MA) of 16.59, above the 50-day MA of 16.46, and above the 200-day MA of 15.83, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 56.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:TKTT.

Tarkett Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGO	68 Neutral	€44.20B	15.78	11.84%	2.43%	1.09%	-0.94%
TKTT	64 Neutral	€1.09B	29.10	-9.67%	―	1.00%	-327.58%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SEFER	55 Neutral	€82.88M	64.18	0.68%	1.69%	8.43%	―