Havas NV (HAVAS) AI Stock Analysis

• Market Cap: €1.47B
• Dividend Yield: 5.54%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.87
• 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: 991,811,460
• 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: €9.80
• Price Target Upside: -32.27% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €1.50 ▼(-89.63% 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 NV (HAVAS) is a global advertising and communications company headquartered in Paris, France. It operates in the advertising sector, providing a wide range of services including digital marketing, media planning and buying, public relations, and brand strategy. Havas is organized into several business units, including Havas Creative, Havas Media, and Havas Health & You, allowing the company to cater to diverse client needs across various industries by delivering integrated marketing solutions.

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 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: Negative
• Last Price: 14.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:HAVAS, the sentiment is Negative. The current price of 14.47 is below the 20-day moving average (MA) of 14.68, below the 50-day MA of 14.93, and below the 200-day MA of 14.48, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 66.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€1.47B	8.34	―	5.54%	-0.51%	-56.03%
KPN	67 Neutral	€15.37B	18.58	34.21%	4.40%	3.75%	0.28%
LIGHT	60 Neutral	€2.57B	8.12	11.48%	7.87%	-4.73%	17.93%
BRNL	59 Neutral	€381.54M	25.12	5.36%	6.97%	-7.16%	-50.45%
BNJ	56 Neutral	€4.21B	19.88	―	3.91%	7.13%	117.79%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RAND	55 Neutral	€5.98B	111.58	1.49%	8.73%	-3.62%	-87.74%