Havas NV (HAVAS) AI Stock Analysis

• Market Cap: €1.55B
• Dividend Yield: 5.13%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.85
• Revenue Growth: -0.51%
• EPS Growth: -56.03%
• Country: NL
• Employees: 22,841
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.75
• Shares Outstanding: 99,181,150
• 10 Day Avg. Volume: 1,304,711
• 30 Day Avg. Volume: 1,165,850
• PEG Ratio: 0.00
• Price to Book (P/B): 8.54
• Price to Sales (P/S): 5.61
• P/FCF Ratio: 77.25
• 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: €13.53
• Price Target Upside: -13.27% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €1.50 ▼(-90.38% Downside)

Havas NV scores well due to its strong financial performance and attractive valuation. The company's stable profitability and conservative balance sheet are significant strengths. However, the decline in revenue and cash flow growth, along with a neutral technical outlook, slightly temper the overall score.

Positive Factors

Strong Profitability

High gross profit margins indicate strong pricing power and cost management, which can sustain profitability even in competitive markets.

Conservative Balance Sheet

A conservative balance sheet with low leverage provides financial stability and flexibility to invest in growth opportunities.

Integrated Service Offerings

Partnerships enhance service offerings, allowing Havas to deliver comprehensive solutions, strengthening client relationships and market position.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting future earnings.

Decline in Free Cash Flow Growth

Reduced free cash flow growth limits the company's ability to fund new projects or pay down debt, affecting long-term financial health.

Low Operating Cash Flow to Net Income Ratio

Inefficiencies in converting income to cash can strain liquidity, affecting the company's ability to meet obligations and invest in growth.

Havas NV Business Overview & Revenue Model

Company Description

Havas SA, through its subsidiaries, provides communications services in France and Internationally. The company offers creative services, including advertising creation and solutions, brand and design expertise, content production, marketing services, customer experience, public relations, public affairs and corporate communications, partnership, sponsorship and event solutions, and business consultancy and transformation; media consulting and investment, fan engagement, retail media and ecommerce, media performance, and data analytics; and health advertising and communications solutions. The company was formerly known as Havas Advertising and changed its name to Havas SA on May 2002. The company was founded in 1835 and is based in Puteaux, France. Havas SA is a subsidiary of Vivendi SE.

How the Company Makes Money

Havas NV generates revenue primarily through its comprehensive suite of advertising and marketing services. The company earns money by charging clients for creative services, media buying, and digital marketing initiatives. Key revenue streams include project-based fees for advertising campaigns, retainer agreements for ongoing marketing support, and commissions from media placements. Additionally, Havas collaborates with major brands and corporations worldwide, leveraging strategic partnerships that enhance its service offerings and expand its reach. Factors contributing to its earnings include the growing demand for integrated marketing solutions, the shift towards digital advertising, and the company's ability to attract and retain a diverse portfolio of clients across different sectors.

Havas NV Financial Statement Overview

Summary

Havas NV presents a stable financial profile with strong profitability and a conservative balance sheet. The company maintains healthy margins and low leverage, but the recent decline in revenue growth and free cash flow growth warrants attention.

Income Statement

Havas NV demonstrates strong profitability with a consistently high gross profit margin above 93% over the years. The net profit margin is stable around 6%, indicating efficient cost management. However, the revenue growth rate has slightly declined in the most recent year, which could be a concern if it continues. EBIT and EBITDA margins remain healthy, reflecting solid operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, which suggests a conservative approach to leverage and a strong equity base. Return on equity is reasonable, indicating effective use of shareholder funds. The equity ratio is healthy, showcasing a solid financial structure. However, the slight decline in stockholders' equity over the years could be monitored.

Cash Flow

Havas NV's cash flow from operations is positive, but there is a notable decline in free cash flow growth, which could impact future investments or debt repayments. The operating cash flow to net income ratio is low, suggesting potential inefficiencies in converting income to cash. The free cash flow to net income ratio is strong, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.90B	2.86B	2.87B	2.77B	2.34B
Gross Profit	908.00M	2.74B	2.69B	2.59B	2.24B
EBITDA	409.00M	415.00M	369.00M	425.00M	335.00M
Net Income	176.00M	173.00M	167.00M	171.00M	113.00M
Balance Sheet
Total Assets	6.64B	6.68B	6.90B	6.80B	6.81B
Cash, Cash Equivalents and Short-Term Investments	362.00M	241.00M	327.00M	353.00M	778.00M
Total Debt	725.00M	323.00M	374.00M	434.00M	855.00M
Total Liabilities	4.88B	4.77B	4.94B	4.91B	5.07B
Stockholders Equity	1.73B	1.88B	1.93B	1.86B	1.70B
Cash Flow
Free Cash Flow	239.00M	208.00M	306.00M	333.00M	306.00M
Operating Cash Flow	268.00M	242.00M	341.00M	370.00M	332.00M
Investing Cash Flow	-39.00M	82.00M	-94.00M	-184.00M	-16.00M
Financing Cash Flow	-77.00M	-447.00M	-242.00M	-638.00M	76.00M

Havas NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:HAVAS, the sentiment is Positive. The current price of 15.6 is above the 20-day moving average (MA) of 14.93, above the 50-day MA of 14.88, and above the 200-day MA of 14.59, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 83.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:HAVAS.

Havas NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAVAS	71 Outperform	€1.55B	8.79	―	5.13%	-0.51%	-56.03%
KPN	67 Neutral	€15.05B	18.48	34.21%	4.44%	3.75%	0.28%
LIGHT	63 Neutral	€2.45B	8.12	11.48%	7.67%	-4.73%	17.93%
BRNL	59 Neutral	€387.58M	25.51	5.36%	7.15%	-7.16%	-50.45%
BNJ	56 Neutral	€3.51B	16.46	―	4.22%	7.13%	117.79%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RAND	46 Neutral	€5.54B	106.34	1.49%	9.17%	-3.62%	-87.74%