Havas NV (HAVAS) AI Stock Analysis

• Market Cap: €1.54B
• Dividend Yield: 5.18%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.93
• Revenue Growth: -0.51%
• EPS Growth: -56.02%
• Country: NL
• Employees: 22,841
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.07
• Shares Outstanding: 991,811,500
• 10 Day Avg. Volume: 1,131,659
• 30 Day Avg. Volume: 1,027,154
• PEG Ratio: 0.00
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 7.72
• 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: €1.66
• Price Target Upside: 7.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: €1.50 ▼(-2.60% Downside)

Havas NV's overall stock score is driven by strong financial performance and attractive valuation. The company's profitability and low leverage are key strengths, while the low P/E ratio and high dividend yield enhance its appeal. Technical indicators suggest a neutral market sentiment, with no strong momentum in either direction.

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 generates revenue primarily through its advertising and marketing services, which are billed to clients on a project basis, through retainers, or as a percentage of media spend. Key revenue streams include creative services, media buying and planning, digital marketing solutions, and public relations. The company works with a broad array of clients, from multinational corporations to local businesses, often forming long-term partnerships that provide stable income. Additionally, Havas benefits from significant collaborations with technology platforms and data analytics firms that enhance its service offerings. The company's performance is also influenced by market trends in advertising spend and client demand for integrated marketing solutions.

Havas NV Financial Statement Overview

Summary

Havas NV demonstrates strong profitability with high gross profit margins and stable net profit margins. The company maintains a low debt-to-equity ratio and a solid financial structure. However, recent declines in revenue growth and free cash flow growth are concerns that need monitoring.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.86B	2.87B	2.77B	2.34B
Gross Profit	2.74B	2.69B	2.59B	2.24B
EBITDA	415.00M	426.00M	425.00M	335.00M
Net Income	173.00M	167.00M	171.00M	113.00M
Balance Sheet
Total Assets	6.68B	6.90B	6.80B	6.81B
Cash, Cash Equivalents and Short-Term Investments	241.00M	327.00M	353.00M	778.00M
Total Debt	323.00M	374.00M	434.00M	855.00M
Total Liabilities	4.77B	4.94B	4.91B	5.07B
Stockholders Equity	1.88B	1.93B	1.86B	1.70B
Cash Flow
Free Cash Flow	208.00M	306.00M	333.00M	306.00M
Operating Cash Flow	242.00M	341.00M	370.00M	332.00M
Investing Cash Flow	82.00M	-94.00M	-184.00M	-16.00M
Financing Cash Flow	-447.00M	-242.00M	-638.00M	76.00M

Havas NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAVAS	70 Outperform	€1.54B	8.73	―	5.18%	-0.51%	-56.02%
BNJ	65 Neutral	3.75B	17.69	-445.89%	3.93%	9.65%	137.72%
AZRN	48 Neutral	161.78M	-5.75	-114.88%	―	3.30%	-200.74%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%