Vivendi (VIVHY) AI Stock Analysis

71 Followers

Top Page

Vivendi

(OTC:VIVHY)

52Neutral

Vivendi's overall score reflects its challenging financial performance, highlighted by declining revenues and high leverage. However, the company's strong cash flow generation and attractive valuation provide some optimism for recovery. The technical analysis indicates downward pressure, and while the earnings call contained some positive developments, significant risks remain. The strategic focus on cost reduction and asset sales could help improve the financial outlook.

Vivendi (VIVHY) vs. S&P 500 (SPY)

Market Cap

$2.67B

Dividend Yield6.4%

Average Volume (3M)117.58K

Price to Earnings (P/E)6.4

Beta (1Y)1.00

Revenue Growth62.97%

EPS GrowthN/A

CountryUS

Employees2,700

SectorCommunication Services

Sector Strength74

IndustryEntertainment

Share Statistics

EPS (TTM)-0.10

Shares Outstanding1,029,918,100

10 Day Avg. Volume191,020

30 Day Avg. Volume117,580

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.06

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Vivendi Business Overview & Revenue Model

Company DescriptionVivendi S.A. is a French multinational company operating in the media and entertainment sectors. It is primarily involved in music, television, film, video games, and telecommunications. The company owns Universal Music Group, one of the largest music companies in the world, as well as Canal+ Group, a major player in television production and distribution. Vivendi also has interests in advertising with Havas Group, publishing with Editis, and video games with Gameloft. Its diverse portfolio allows it to reach a broad audience across various media platforms.

How the Company Makes MoneyVivendi generates revenue through a mix of subscription services, advertising, licensing, and sales. Universal Music Group represents a significant portion of its revenue through music streaming, licensing agreements, and physical and digital music sales. Canal+ Group contributes through subscription fees for its pay-TV services and revenue from advertising and content sales. Havas Group, as an advertising and communications services firm, earns through advertising campaigns and marketing solutions. Editis, a major publishing group, generates revenue from book sales and publishing services. Additionally, Gameloft adds to earnings through mobile game sales and in-app purchases. Vivendi's revenue model is bolstered by strategic partnerships, content distribution deals, and a global market presence.

Vivendi Financial Statement Overview

Summary

Vivendi faces a challenging financial landscape with declining revenues and profitability issues. The balance sheet indicates high leverage, but the company maintains a reasonable equity base. Cash flow generation is a bright spot, suggesting operational resilience. Overall, while there are significant risks, there are indications of underlying operational strength and potential for recovery.

Income Statement

Neutral

Vivendi has experienced significant volatility in revenue and profitability. The company's revenue has declined from $16.09 billion in 2020 to $2.97 billion in 2024, with a negative net income in the recent period indicating financial distress. The gross profit margin is relatively low, and the EBIT margin is nonexistent for 2024. However, there was a positive revenue trend from 2022 to 2023, suggesting some recovery efforts.

Balance Sheet

Neutral

Vivendi's balance sheet shows a high debt-to-equity ratio, signifying potential leverage risks. The equity ratio is moderate, indicating that a substantial portion of assets is financed by equity. Despite the high net debt, stockholders' equity remains significant, suggesting some level of financial stability amidst the challenges. The return on equity has been negative recently, reflecting ongoing profitability issues.

Cash Flow

Neutral

The cash flow position seems relatively strong despite the challenges, with a positive operating cash flow and free cash flow in 2024. The company's ability to generate cash flow relative to net income has improved, which is a positive sign. However, the free cash flow growth rate is volatile, and the reliance on cash reserves to cover financial obligations is evident.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
10.65B	297.00M	10.51B	9.60B	9.57B	16.09B
	Gross Profit
4.58B	86.00M	4.82B	4.24B	4.21B	7.28B
	EBIT
184.00M	0.00	847.00M	761.00M	404.00M	1.47B
	EBITDA
1.26B	101.00M	1.43B	961.00M	1.56B	1.06B
	Net Income Common Stockholders
24.61B	-6.00B	405.00M	-1.01B	24.69B	1.44B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.87B	107.00M	2.19B	2.55B	4.46B	1.11B
	Total Assets
34.40B	7.93B	38.25B	31.28B	33.37B	38.12B
	Total Debt
4.22B	2.69B	9.11B	4.13B	4.98B	7.34B
	Net Debt
423.00M	2.65B	6.95B	2.23B	1.65B	6.36B
	Total Liabilities
16.87B	3.34B	21.01B	13.68B	14.17B	21.69B
	Stockholders Equity
17.31B	4.59B	17.11B	17.37B	18.98B	15.76B
Cash Flow		Free Cash Flow
1.52B	1.84B	546.00M	363.00M	1.18B	788.00M
	Operating Cash Flow
2.13B	1.84B	951.00M	748.00M	1.64B	1.23B
	Investing Cash Flow
-6.30B	-2.13B	808.00M	-695.00M	-3.75B	-1.65B
	Financing Cash Flow
4.21B	-1.83B	-1.47B	-1.44B	4.43B	-675.00M

Vivendi Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.72

Price Trends

50DMA

3.06

Negative

100DMA

3.24

Negative

200DMA

3.97

Negative

Market Momentum

MACD

-0.11

Negative

RSI

42.31

Neutral

STOCH

72.25

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIVHY, the sentiment is Negative. The current price of 2.72 is below the 20-day moving average (MA) of 2.80, below the 50-day MA of 3.06, and below the 200-day MA of 3.97, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 72.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIVHY.

Vivendi Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMG	68 Neutral	$15.24B	30.05	100.20%	2.42%	0.75%	9.36%
NWSA	65 Neutral	$15.70B	36.25	5.23%	0.76%	-1.51%	82.74%
PARA	61 Neutral	$7.66B	―	-31.94%	1.87%	-1.48%	-450.15%
Sector *	59 Neutral	$13.83B	7.37	-0.59%	3.89%	2.56%	-39.63%
WBD	58 Neutral	$19.84B	―	-28.54%	―	-4.91%	-259.71%
VIVHY	52 Neutral	$2.67B	6.45	2.26%	6.40%	62.97%	―
SIRI	48 Neutral	$7.02B	―	-37.33%	5.25%	-2.84%	-249.80%

* Communication Services Sector Average

Performance Comparison

VIVHY

Vivendi

2.72

-1.66

-37.90%

PARA

Paramount Global Class B

10.71

0.10

0.94%

NWSA

News Corp

25.67

1.70

7.09%

SIRI

Sirius XM Holdings

20.08

-9.76

-32.71%

WMG

Warner Music Group

28.59

-3.98

-12.22%

WBD

Warner Bros

7.92

-0.31

-3.77%

Vivendi Earnings Call Summary

Earnings Call Date: Mar 6, 2025 | % Change Since: -9.03% | Next Earnings Date: Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted successful spin-off operations and positive stock performance. However, the company faced challenges with declining revenues, particularly for Gameloft, and a significant net loss due to the spin-off. While there were notable achievements in certain segments, the overall financial performance showed some negative trends.

Highlights

Vivendi Stock Performance

Vivendi's stock rose by 15% since the beginning of the year, outperforming the SBF120 index.

Successful Spin-off

The spin-off and respective listings of Group Canal+, Havas, and Louis Hachette Group were completed on a tight schedule, with an approval of 97.5% at the Extraordinary General Meeting.

Positive EBITDA Growth for Gameloft

Despite a 5.7% decrease in revenue, Gameloft increased its EBITDA from €5 million to €8 million, showcasing effective cost management.

Robust Performance of Havas and Louis Hachette Group

Havas closed a historic year, and Louis Hachette Group achieved very strong results, combining Lagardère and Prisma Media.

Dividend Proposal

A dividend of €0.04 per share is proposed, representing a yield of 1.5%, subject to shareholder approval.

Lowlights

Overall Revenue and EBITDA Decline

Revenue was reported at €297 million, with an EBITDA of minus 1%. The net earnings group shares were negatively impacted by €6 billion due to the split.

Gameloft Revenue Decline

Gameloft's revenue decreased by 5.7%, from €311 million in 2023 to €293 million in 2024.

Net Loss Impacted by Spin-off

The net income group share showed a loss of €6.4 billion due to the fair value adjustment of the distributed assets.

Corporate Cost and Operational Challenges

The corporate cost was €126 million, and there is a plan to reduce operational expenses further, though specific targets for 2025 were not disclosed.

Telecom Italia Stake

Vivendi plans to sell its stake in Telecom Italia, but awaits a favorable position to exit.

Company Guidance

During Vivendi's 2024 fiscal year earnings call, key metrics and guidance were highlighted. The company reported a portfolio valued at €7.1 billion, with a net asset value of €4.8 billion, equating to €4.69 per share. Revenue was noted at €297 million, with EBITDA at minus 1%. Adjusted net income stood at €111 million, while net earnings group shares were negatively impacted by €6 billion due to the split of assets. The group experienced a 15% rise in stock value since the start of the year, outperforming the SBF120 index. Gameloft, an operational asset, saw a revenue drop of 5.7% but improved EBITDA from €5 million to €8 million. The company also highlighted a 30% loan-to-value ratio, with a net debt of €2.72 billion. The management spoke about reducing corporate costs and a strategic plan to sell its stake in Telecom Italia, while emphasizing continued investment in Gameloft for organic growth and potential acquisitions. An ordinary dividend of €0.04 per share, representing a yield of 1.5%, was proposed for approval at the April 28 shareholders' meeting.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.