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

• Market Cap: €518.42M
• Dividend Yield: 6.98%
• Average Volume (3M): 332.19K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.61
• Revenue Growth: -1.06%
• EPS Growth: 8.71%
• Country: IT
• Employees: 2,813
• Sector: Communication Services
• Sector Strength: 88
• Industry: Publishing
• EPS (TTM): 0.12
• Shares Outstanding: 521,864,900
• 10 Day Avg. Volume: 134,854
• 30 Day Avg. Volume: 332,194
• PEG Ratio: N/A
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.63
• 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

• Rating: 68 Neutral
• Price Target: €1.50 ▲(50.00%Upside)

RCS MediaGroup's stock is supported by a solid financial foundation, with stable profitability and effective cash flow management, which contribute to a strong base for operations and potential growth. The attractive valuation, characterized by a low P/E ratio and high dividend yield, enhances its investment appeal. However, technical indicators suggest the stock might be overbought, indicating a potential risk for short-term correction.

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 primarily through the sale of advertising space and circulation of its print and digital publications. Advertising is a key revenue stream, with businesses purchasing space in RCS's newspapers, magazines, and online platforms to reach their target audiences. The company also earns money from subscription fees and newsstand sales of its publications. Additionally, RCS leverages digital transformation by monetizing content through paywalls and digital subscriptions. Events and conferences organized by the company offer another source of revenue, while partnerships with other media companies and content distribution agreements further enhance its earnings.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
819.20M	828.00M	845.00M	846.20M	749.50M
	Gross Profit
400.00M	358.80M	346.70M	377.60M	349.00M
	EBIT
98.80M	81.20M	66.60M	96.00M	32.50M
	EBITDA
152.20M	136.40M	119.10M	153.10M	90.80M
	Net Income Common Stockholders
62.00M	57.00M	50.10M	72.40M	31.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.20M	18.20M	23.50M	72.90M	50.80M
	Total Assets
986.50M	1.00B	1.05B	1.05B	997.00M
	Total Debt
135.00M	130.00M	142.80M	161.60M	155.50M
	Net Debt
76.80M	111.80M	119.30M	88.70M	104.70M
	Total Liabilities
542.70M	587.70M	655.00M	678.60M	685.40M
	Stockholders Equity
441.40M	414.90M	390.10M	367.90M	310.30M
Cash Flow		Free Cash Flow
94.50M	70.10M	13.40M	116.70M	82.50M
	Operating Cash Flow
115.70M	93.30M	93.40M	134.70M	98.40M
	Investing Cash Flow
-20.00M	-21.50M	-80.70M	-5.90M	2.30M
	Financing Cash Flow
-54.10M	-79.10M	-62.10M	-106.10M	-54.70M

RCS MediaGroup S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RCS, the sentiment is Neutral. The current price of 1 is below the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.96, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 14.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
RCS	68 Neutral	€518.42M	8.36	14.48%	6.98%	-1.06%	8.71%
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
0KAV		€566.39M	10.37	18.70%	6.03%	―	―
0N7I		€409.30M	9.05	8.06%	5.25%	―	―
0R8L		€26.34M	―		―	―	―
LFG		€23.66M	―		―	―	―
SEIF		€7.20M	―		―	―	―