RCS MediaGroup S.p.A. (RCS) AI Stock Analysis

• Market Cap: €509.62M
• Dividend Yield: 7.3%
• Average Volume (3M): 151.55K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.58
• Revenue Growth: -1.41%
• EPS Growth: 3.84%
• Country: IT
• Employees: 2,813
• Sector: General
• Sector Strength: N/A
• Industry: Publishing
• EPS (TTM): N/A
• Shares Outstanding: 521,864,900
• 10 Day Avg. Volume: 149,534
• 30 Day Avg. Volume: 151,553
• PEG Ratio: 0.81
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 4.86
• 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: 68 Neutral
• Price Target: €1.00 ▲(2.04% Upside)

RCS MediaGroup's strong financial performance and attractive valuation are the primary drivers of its score. The company's stable cash flow and solid balance sheet provide a strong foundation, while its undervalued P/E ratio and high dividend yield enhance its investment appeal. Technical indicators are neutral, suggesting a balanced outlook.

Positive Factors

Cash Flow Management

Effective cash flow management ensures RCS MediaGroup can sustain operations and invest in growth opportunities, supporting long-term stability.

Balance Sheet Health

A strong balance sheet with manageable debt levels provides RCS MediaGroup with financial flexibility to navigate industry challenges.

Profitability

Stable profitability allows RCS MediaGroup to reinvest in its business, maintain competitive positioning, and deliver shareholder value.

Negative Factors

Revenue Decline

Declining revenue can hinder RCS MediaGroup's ability to grow and compete, potentially impacting long-term financial performance.

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or competitive pressures, affecting RCS MediaGroup's profitability and financial health.

Absence of EBIT

The absence of EBIT suggests potential operational challenges, which could impact RCS MediaGroup's ability to generate core earnings.

RCS MediaGroup S.p.A. Business Overview & Revenue Model

Company Description

RCS MediaGroup S.p.A. operates as a multimedia publishing company in Italy, Spain, and internationally. The company publishes newspapers under the Corriere della Sera, Corriere Salute, SOLFERINO, Buone Notizie, Dataroom, La Gazzetta dello Sport, El Mundo, Marca, Expansión, L'Economia, La Lettura, ViviMilano, CI-Corriere Innovazione, and Gazzetta Selection names; and magazines in the women, oggi, interior design, men and lifestyle, travel, and other areas under the MARCA MOTOR, Oggi, AMICA, 7, Abitare, Living, Style, TELVA, Io Donna, DOVE, Sportweek, Insieme, Metrópoli, ACTUALIDAD ECONÓMICA, Fuera de Serie, Italian Style, Io e il mio Bambino, SFERA editore, Oggi Cucino, Style Piccoli, Quimamme, Yo Dona, Sano & Leggero, Bimbinfiera, and Oggi Enigmistica names. It also operates MYBEAUTYBOX, corrierstore.it, doveclub.it, quimammeshop.it, gazzettastore.it, dirittierisposte.it, buonpertutti.corriere.it, and magic.gazzetta.it websites; and TV and radio channels under the Dove Lifestyle, Lei, Radio Marca, Caccia e Pesca, and Corriere TV names. In addition, the company offers print and digital advertising solutions under the RCS PUBBLICITA, m-dis, Imagine, CORREO FARMACÉUTICO, DIARIO MÉDICO, and Infanzia names, as well as sells mobile phone top-up services; and organizes sports and other events, such as roadshows, guerrilla events, sampling, trade marketing, and press conferences under the RCS Sport, SALA BUZZATI, and Last Lap names. The company was formerly known as Holding di Partecipazioni Industriali S.p.A. and changed its name to RCS MediaGroup S.p.A. in 2003. RCS MediaGroup S.p.A. is based in Milan, Italy.

How the Company Makes Money

RCS MediaGroup generates revenue through multiple streams including advertising sales across its print and digital platforms, subscription revenues from its newspapers and magazines, and licensing fees associated with its media content. The company also monetizes its digital presence through online advertising and partnerships with digital platforms. Additionally, RCS has strategic partnerships with various brands and organizations that enhance its reach and distribution capabilities, contributing to its overall earnings. The shift towards digital has led RCS to focus on expanding its online content offerings, which is increasingly becoming a crucial part of its revenue model.

RCS MediaGroup S.p.A. Financial Statement Overview

Summary

RCS MediaGroup exhibits a solid financial foundation with stable profitability and effective cash flow management. Despite some fluctuations in revenue and profitability margins, the company maintains a strong balance sheet and cash flow position, supporting continued operations and potential growth.

Income Statement

RCS MediaGroup shows a mixed performance in recent years. The Gross Profit Margin remains solid, although Net Profit Margin has slightly declined. Revenue has shown fluctuations, with a slight decrease in the latest year. The absence of EBIT in the latest year is concerning, but EBITDA Margin is relatively stable.

Balance Sheet

The company's Debt-to-Equity Ratio is reasonable, indicating manageable leverage. Stockholders' Equity has grown steadily, and the Equity Ratio suggests a stable financial structure. Return on Equity is positive, reflecting the company's ability to generate profits from shareholders' investments.

Cash Flow

RCS MediaGroup demonstrates a strong cash flow position, with consistent Free Cash Flow and positive growth in Operating Cash Flow. The Free Cash Flow to Net Income Ratio is strong, indicating effective cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	811.30M	819.20M	828.00M	845.00M	846.20M	749.50M
Gross Profit	256.80M	326.80M	358.80M	346.70M	377.60M	349.00M
EBITDA	154.90M	148.10M	136.40M	119.10M	153.10M	100.00M
Net Income	63.10M	62.00M	57.00M	50.10M	72.40M	31.70M
Balance Sheet
Total Assets	1.04B	1.06B	1.00B	1.05B	1.05B	997.00M
Cash, Cash Equivalents and Short-Term Investments	40.80M	58.20M	18.20M	23.50M	72.90M	50.80M
Total Debt	163.20M	185.40M	130.00M	199.60M	218.00M	272.20M
Total Liabilities	598.80M	616.10M	587.70M	655.00M	678.60M	685.40M
Stockholders Equity	440.10M	441.40M	414.90M	390.10M	367.90M	310.30M
Cash Flow
Free Cash Flow	103.10M	94.50M	70.10M	13.40M	116.70M	82.50M
Operating Cash Flow	128.40M	115.70M	93.30M	93.40M	134.70M	98.40M
Investing Cash Flow	-25.20M	-20.00M	-21.50M	-80.70M	-5.90M	2.30M
Financing Cash Flow	-70.10M	-54.10M	-79.10M	-62.10M	-106.10M	-54.70M

RCS MediaGroup S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.98
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RCS, the sentiment is Positive. The current price of 0.98 is above the 20-day moving average (MA) of 0.95, below the 50-day MA of 0.98, and below the 200-day MA of 0.99, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 79.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:RCS.

RCS MediaGroup S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MN	74 Outperform	€557.27M	10.59	16.46%	6.34%	0.29%	-4.85%
CAI	73 Outperform	€340.65M	8.31	8.25%	―	-1.56%	7.19%
RCS	68 Neutral	€509.62M	8.09	14.78%	7.30%	-1.41%	3.84%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%