MFE-MediaForEurope NV Class A (MFEA) AI Stock Analysis

• Market Cap: €2.20B
• Dividend Yield: 9.07%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.63
• Revenue Growth: 0.01%
• EPS Growth: -32.22%
• Country: IT
• Employees: 5,194
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): N/A
• Shares Outstanding: 469,897,600
• 10 Day Avg. Volume: 1,603,608
• 30 Day Avg. Volume: 1,610,195
• PEG Ratio: -1.28
• Price to Book (P/B): 5.77
• Price to Sales (P/S): 5.68
• P/FCF Ratio: 21.28
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €3.50 ▲(14.75% Upside)

The overall stock score is primarily driven by strong valuation metrics, with a low P/E ratio and high dividend yield making it attractive for value and income investors. Financial performance is stable, with improved leverage and cash flow, though profitability metrics like net profit margin and ROE need monitoring. Technical analysis indicates a neutral to slightly bearish short-term trend, which may affect short-term investor sentiment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable market position and the ability to attract advertisers, supporting long-term financial health.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility and supports potential reinvestment in growth opportunities.

Leverage Improvement

Reduced leverage improves financial stability and reduces risk, allowing for better management of economic downturns.

Negative Factors

Profitability Decline

Declining profitability may impact future investment capacity and shareholder returns, necessitating focus on cost management.

ROE Decline

A declining ROE suggests reduced efficiency in generating profits from equity, potentially affecting investor confidence.

Earnings Growth Challenge

Negative EPS growth indicates challenges in profit expansion, which could hinder long-term valuation and growth prospects.

MFE-MediaForEurope NV Class A Business Overview & Revenue Model

Company Description

MFE-MediaForEurope NV Class A (MFEA) is a leading European media company headquartered in Amsterdam, specializing in the production and distribution of audiovisual content across multiple platforms. The company operates primarily in the television and digital media sectors, offering a diverse range of services including broadcasting, content creation, and advertising solutions. MFEA is known for its well-established television networks and is also engaged in film production, making it a significant player in the European entertainment industry.

How the Company Makes Money

MFE-MediaForEurope generates revenue through several key streams. The primary source of income comes from advertising sales, where the company sells commercial airtime on its television networks and digital platforms to various advertisers looking to reach a broad audience. Additionally, MFEA earns revenue from subscription services, where viewers pay for premium content or access to exclusive programming. The company also profits from content licensing and syndication, where it sells its produced content to other networks or platforms. Strategic partnerships with advertising agencies and technology firms enhance its reach and effectiveness in monetizing its content. Furthermore, MFEA's involvement in film production not only adds to its content library but also provides additional revenue opportunities through box office sales and distribution rights.

MFE-MediaForEurope NV Class A Financial Statement Overview

Summary

MFE-MediaForEurope NV Class A demonstrates a stable financial position with consistent revenue growth and operational efficiency. While profitability has declined slightly, the company has improved its leverage ratios and cash flow generation, suggesting prudent financial management. Investors should monitor the net profit margin and ROE for potential improvements.

Income Statement

MFE-MediaForEurope NV Class A has shown a stable revenue base with a modest growth rate of 3.91% from 2023 to 2024. Gross profit margin increased to 35.15% in 2024, up from 29.36% in the previous year, indicating improved cost management. However, net profit margin decreased to 4.73% from 7.46% due to lower net income. EBIT and EBITDA margins remained stable, reflecting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio improved to 0.29 in 2024 from 0.38 in 2023, indicating reduced leverage. The equity ratio remains stable at 59.94%, showcasing a strong equity base. ROE saw a decline to 4.81% due to reduced net income, which might be a concern for investors.

Cash Flow

Free cash flow saw a significant increase of 156.69% in 2024, driven by improved operating cash flow and reduced capital expenditures. The operating cash flow to net income ratio is robust at 5.96, indicating strong cash generation capability relative to net income. The free cash flow to net income ratio also improved to 5.64, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10B	2.91B	2.78B	2.77B	2.86B	2.61B
Gross Profit	1.35B	1.02B	1.23B	905.10M	959.70M	615.10M
EBITDA	857.60M	792.20M	796.10M	836.20M	1.04B	841.80M
Net Income	163.40M	138.00M	209.20M	216.90M	374.10M	139.30M
Balance Sheet
Total Assets	4.58B	4.79B	5.01B	5.36B	5.65B	5.96B
Cash, Cash Equivalents and Short-Term Investments	71.20M	145.80M	175.30M	522.50M	315.60M	447.90M
Total Debt	695.60M	863.20M	1.09B	1.42B	1.20B	1.53B
Total Liabilities	1.76B	1.92B	2.13B	2.47B	2.42B	2.79B
Stockholders Equity	2.82B	2.87B	2.87B	2.67B	2.66B	2.67B
Cash Flow
Free Cash Flow	681.50M	777.70M	721.90M	361.40M	495.00M	329.60M
Operating Cash Flow	1.21B	822.70M	769.00M	775.00M	991.50M	821.20M
Investing Cash Flow	-741.30M	-431.40M	-510.50M	-387.90M	-415.40M	-520.20M
Financing Cash Flow	-471.50M	-426.20M	-605.70M	-180.20M	-708.40M	-98.20M

MFE-MediaForEurope NV Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:MFEA, the sentiment is Negative. The current price of 3.05 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 3.03, and above the 200-day MA of 3.00, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 18.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:MFEA.

MFE-MediaForEurope NV Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAI	73 Outperform	€340.65M	8.31	8.25%	―	-1.56%	7.19%
MFEA	73 Outperform	€2.20B	8.39	―	9.07%	0.01%	-32.22%
RCS	68 Neutral	€509.62M	8.09	14.78%	7.30%	-1.41%	3.84%
MFEB	68 Neutral	€2.20B	11.17	5.78%	6.78%	0.01%	-32.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%