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Vivendi (VIVHY)
:VIVHY
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Vivendi
(OTC:VIVHY)
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Rating:54Neutral
Price Target:
$3.00
▲(7.53% Upside)
Vivendi's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces significant financial challenges, with declining revenue and profitability. Technical indicators suggest bearish momentum, with the stock trading below key moving averages. However, the valuation appears attractive due to a low P/E ratio and high dividend yield, which provides some support to the stock score.
Positive Factors
Cash Flow Generation
Strong operating cash flow indicates Vivendi's ability to generate cash internally, providing a buffer against financial instability and supporting ongoing operations and investments.
Diverse Revenue Streams
Vivendi's diversified portfolio across entertainment sectors reduces reliance on a single revenue stream, enhancing resilience against sector-specific downturns.
Equity Financing Stability
A stable equity ratio suggests Vivendi maintains a balanced approach to financing, supporting long-term financial health and reducing risk from excessive debt.
Negative Factors
Declining Revenue
Declining revenue over several years indicates challenges in maintaining market share and competitiveness, potentially impacting long-term growth prospects.
Increased Leverage
Higher leverage increases financial risk, potentially limiting Vivendi's ability to invest in growth opportunities and manage economic downturns effectively.
Profitability Pressure
Decreasing profit margins suggest operational inefficiencies and pricing pressures, which could strain profitability and hinder reinvestment in core business areas.
Vivendi (VIVHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.82B
Dividend Yield179.4%
Average Volume (3M)139.24K
Price to Earnings (P/E)6.8
Beta (1Y)1.13
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,700
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.01
Shares Outstanding1,029,918,100
10 Day Avg. Volume386,281
30 Day Avg. Volume139,242
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.40
Price to Sales (P/S)21.62
P/FCF Ratio3.49
Enterprise Value/Market Cap1.90
Enterprise Value/Revenue36.99
Enterprise Value/Gross Profit121.91
Enterprise Value/Ebitda-114.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Vivendi Business Overview & Revenue Model
Company DescriptionVivendi (VIVHY) is a global media and entertainment conglomerate based in France, operating primarily in the sectors of music, television, film, and video games. The company is known for its diverse portfolio, which includes Universal Music Group, one of the largest music companies in the world, as well as significant stakes in television and film production through subsidiaries like Canal+ Group. Additionally, Vivendi has interests in digital publishing and video game development, making it a key player in the entertainment landscape.
How the Company Makes MoneyVivendi generates revenue through multiple key streams. The largest portion comes from Universal Music Group, which profits from music sales, streaming services, licensing, and publishing rights. Canal+ Group contributes significantly through subscription fees, advertising revenue, and partnerships with telecommunications companies. The company's video game segment, through its subsidiary Gameloft, earns money from game sales, in-app purchases, and advertising. Vivendi also benefits from strategic partnerships with other media companies and platforms, enhancing its distribution capabilities and revenue potential across its various sectors.
Vivendi Earnings Call Summary
Earnings Call Date:Mar 06, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.Vivendi Financial Statement Overview
Summary
Vivendi faces challenges with declining revenue and profitability, as evidenced by the income statement. The balance sheet reflects increased leverage, while cash flow generation remains a positive aspect. The company needs to address operational inefficiencies and stabilize its financial performance to improve its financial health.Income Statement
Vivendi's income statement shows significant volatility. The company experienced a substantial decline in revenue from 2020 to 2024, with a notable drop in net income, turning from a profit in 2020 to a large loss in 2024. The gross profit margin has decreased over the years, indicating pressure on profitability. The negative EBIT in 2024 further highlights operational challenges.45
Neutral
Balance Sheet
The balance sheet reveals a moderate financial position. The debt-to-equity ratio has increased over time, reflecting higher leverage. However, the equity ratio remains relatively stable, suggesting a reasonable level of equity financing. The decline in total assets and stockholders' equity from 2020 to 2024 indicates potential asset divestitures or impairments.55
Neutral
Cash Flow
Vivendi's cash flow statement shows mixed results. While operating cash flow has been relatively strong, the free cash flow has fluctuated, with a significant increase in 2024. The free cash flow to net income ratio is high due to the negative net income, indicating a reliance on cash flow generation rather than profitability.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 145.00M | 297.00M | 10.51B | 9.60B | 8.72B | 8.67B |
| Gross Profit | 44.00M | 86.00M | 4.82B | 4.24B | 3.85B | 3.76B |
| EBITDA | -47.00M | 101.00M | -104.00M | 926.00M | 895.00M | 1.06B |
| Net Income | 30.00M | -6.00B | 405.00M | -1.01B | 24.69B | 1.44B |
Balance Sheet | ||||||
| Total Assets | 7.33B | 7.93B | 38.25B | 31.28B | 33.37B | 38.12B |
| Cash, Cash Equivalents and Short-Term Investments | 240.00M | 107.00M | 2.19B | 2.55B | 4.46B | 1.11B |
| Total Debt | 1.98B | 2.69B | 9.11B | 4.43B | 5.15B | 7.47B |
| Total Liabilities | 2.51B | 3.34B | 21.01B | 13.68B | 14.17B | 21.69B |
| Stockholders Equity | 4.82B | 4.59B | 17.11B | 17.37B | 18.98B | 15.76B |
Cash Flow | ||||||
| Free Cash Flow | -66.00M | 1.84B | 932.00M | 363.00M | 1.18B | 788.00M |
| Operating Cash Flow | -64.00M | 1.84B | 937.00M | 748.00M | 1.64B | 1.23B |
| Investing Cash Flow | 994.00M | -2.13B | 808.00M | -695.00M | -3.75B | -1.65B |
| Financing Cash Flow | -796.00M | -1.83B | -1.47B | -1.44B | 4.43B | -675.00M |
Vivendi Technical Analysis
Negative
2.79
Price Trends
3.32
Negative
3.47
Negative
3.27
Negative
Market Momentum
-0.19
Positive
24.41
Positive
12.35
Positive
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 2.79 is below the 20-day moving average (MA) of 3.09, below the 50-day MA of 3.32, and below the 200-day MA of 3.27, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 24.41 is Positive, neither overbought nor oversold. The STOCH value of 12.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIVHY.
Vivendi Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $60.78B | 130.76 | 1.36% | ― | -4.29% | ― | |
63 Neutral | $14.52B | 40.07 | 61.97% | 2.62% | 4.37% | -16.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $2.82B | 6.76 | ― | 179.40% | ― | ― | |
54 Neutral | $7.01B | 7.51 | 8.86% | 5.06% | -2.80% | ― | |
53 Neutral | $2.15B | ― | ― | ― | 97.19% | -21.46% | |
51 Neutral | $2.01B | ― | -2.91% | ― | -10.68% | -127.54% |
* Communication Services Sector Average
VIVHY
Vivendi
2.70
-1.08
-28.57%
SIRI
Sirius XM Holdings
21.33
-5.14
-19.42%
IQ
Iqiyi
2.03
-0.20
-8.97%
WMG
Warner Music Group
27.86
-3.32
-10.65%
LION
Lionsgate Studios
7.18
0.14
1.99%
WBD
Warner Bros
24.57
13.92
130.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.