Technicolor (VANTI) AI Stock Analysis

• Market Cap: €48.64M
• Dividend Yield: N/A
• Average Volume (3M): 100.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -15.63%
• EPS Growth: -67.81%
• Country: FR
• Employees: 4,355
• Sector: Technology
• Sector Strength: 88
• Industry: Media & Entertainment
• EPS (TTM): -0.60
• Shares Outstanding: 490,293,900
• 10 Day Avg. Volume: 106,444
• 30 Day Avg. Volume: 100,875
• PEG Ratio: <0.01
• Price to Book (P/B): -0.08
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 1.93
• 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: €0.14
• Price Target Upside: 40.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: €0.00 ▼(-100.00% Downside)

Technicolor's stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's high leverage and persistent losses present significant risks. Additionally, the negative P/E ratio and lack of dividend yield further detract from its attractiveness. Overall, the stock is currently not appealing for investors seeking stability or growth.

Positive Factors

Cash Flow Improvements

Improved operating cash flow suggests enhanced efficiency in cash generation, which can support operational needs and potential investments.

Strategic Partnerships

Long-term contracts with major studios and platforms provide a steady income stream, enhancing revenue stability and market position.

EBIT and EBITDA Margin Improvement

Slight improvements in EBIT and EBITDA margins indicate better cost management and potential for future profitability enhancements.

Negative Factors

High Leverage

High leverage and negative equity suggest financial instability, increasing the risk of insolvency and limiting financial flexibility.

Declining Revenues

Consistent revenue decline undermines growth prospects and indicates challenges in maintaining market competitiveness and demand.

Persistent Losses

Ongoing losses highlight operational inefficiencies and financial distress, necessitating strategic changes to achieve sustainability.

Technicolor Business Overview & Revenue Model

Company Description

Technicolor (VANTI) is a global leader in the media and entertainment technology sector, specializing in digital solutions for content creation, distribution, and monetization. The company operates through various segments, including visual effects, animation, audio services, and post-production, catering to film studios, television networks, and streaming services. With a focus on innovation, Technicolor provides a range of services designed to enhance the visual and auditory experience of content, helping creators bring their visions to life.

How the Company Makes Money

Technicolor generates revenue through multiple streams, primarily by offering a suite of services that include visual effects, animation, and post-production services to clients in the film and television industry. The company charges fees for its creative services, which are typically project-based and vary depending on the scope and complexity of the work. Additionally, Technicolor earns revenue from licensing its technology and intellectual property to other companies in the entertainment sector. Strategic partnerships with major studios and streaming platforms also contribute significantly to its earnings, as these collaborations often lead to long-term contracts and repeat business. Furthermore, the company may engage in joint ventures or co-productions, sharing both risks and rewards while enhancing its service offerings and market reach.

Technicolor Financial Statement Overview

Summary

Technicolor faces significant financial challenges, characterized by declining revenues, persistent losses, and high leverage. While some cash flow improvements are noted, the overall financial position remains weak. Strategic actions are necessary to improve profitability and stabilize the balance sheet to ensure long-term viability.

Income Statement

Technicolor has faced declining revenues over the past few years, with significant revenue drop from 2020 to 2024. Profitability is a concern with negative net income consistently, although there was a slight improvement in gross profit margin in 2024. The company managed to improve its EBIT and EBITDA margins slightly in the most recent year, but they remain relatively low.

Balance Sheet

Technicolor's balance sheet indicates high leverage, as seen in the negative stockholders' equity and increasing total debt from 2023 to 2024. The debt-to-equity ratio is concerning, and the company has struggled to maintain a positive equity ratio. These factors suggest financial instability and potential risk of insolvency.

Cash Flow

The cash flow statement shows improvement in operating cash flow in 2024, but free cash flow remains low. The operating cash flow to net income ratio is positive, indicating some efficiency in cash generation despite negative net income. However, the company's ability to generate cash to cover expenses and invest in growth remains limited.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	861.00M	1.86B	1.56B	2.78B	2.25B	3.01B
Gross Profit	134.00M	292.00M	207.00M	307.00M	275.00M	277.00M
EBITDA	62.00M	93.00M	65.00M	106.00M	94.00M	76.00M
Net Income	-295.00M	-282.00M	-285.00M	151.00M	-140.00M	-211.00M
Balance Sheet
Total Assets	1.32B	1.72B	1.67B	2.34B	3.00B	3.02B
Cash, Cash Equivalents and Short-Term Investments	55.00M	57.00M	162.00M	167.00M	196.00M	330.00M
Total Debt	462.00M	1.01B	542.00M	431.00M	1.24B	1.14B
Total Liabilities	1.70B	2.46B	1.66B	2.02B	2.87B	2.85B
Stockholders Equity	-381.00M	-738.00M	6.00M	320.00M	134.00M	165.00M
Cash Flow
Free Cash Flow	45.50M	31.00M	-54.00M	3.00M	-83.00M	-189.00M
Operating Cash Flow	48.00M	43.00M	23.00M	86.00M	14.00M	-81.00M
Investing Cash Flow	-4.00M	-99.00M	-97.00M	-74.00M	-5.00M	-156.00M
Financing Cash Flow	-34.00M	-47.00M	76.00M	-518.00M	-34.00M	522.00M

Technicolor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VANTI, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 16.15 is Positive, neither overbought nor oversold. The STOCH value of 20.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:VANTI.

Technicolor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFI	68 Neutral	€1.65B	8.76	9.15%	7.31%	1.00%	-7.89%
ALPUL	62 Neutral	€141.42M	6.84	13.78%	5.80%	108.18%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VIV	54 Neutral	€2.97B	7.84	―	1.63%	―	―
GAM	51 Neutral	€288.16M	―	-6.82%	―	-31.54%	-53.98%
VANTI	38 Underperform	€48.64M	-0.12	―	―	-15.63%	-67.81%