Vivendi (VIVHY) AI Stock Analysis

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Vivendi

(OTC:VIVHY)

Rating:63Neutral

Price Target:

$4.00

▲(5.26%Upside)

Vivendi's overall stock score is influenced primarily by financial performance challenges, with declining revenue and profitability. The valuation is reasonable, providing a good dividend yield. Technical analysis shows mixed signals, with positive momentum but overbought conditions. The earnings call provides insights into strategic efforts to mitigate challenges.

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

Market Cap

$3.84B

Dividend Yield134.44%

Average Volume (3M)51.03K

Price to Earnings (P/E)9.2

Beta (1Y)0.92

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees2,700

SectorCommunication Services

Sector Strength87

IndustryEntertainment

Share Statistics

EPS (TTM)-0.10

Shares Outstanding1,029,918,100

10 Day Avg. Volume24,135

30 Day Avg. Volume51,030

Financial Highlights & Ratios

PEG Ratio-2.12

Price to Book (P/B)0.63

Price to Sales (P/S)0.00

P/FCF Ratio4.80

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.E. is a French multinational company headquartered in Paris, operating primarily in the media and entertainment sectors. The company holds a diverse portfolio of businesses, including music, television, film, video games, and telecommunications. Its core products and services revolve around content production and distribution, with notable subsidiaries such as Universal Music Group, Groupe Canal+, and Havas Group, making Vivendi a significant player in the global entertainment and communications industries.

How the Company Makes MoneyVivendi generates revenue through various streams across its diverse business segments. Universal Music Group, a major subsidiary, is a key revenue driver, earning money from recorded music, music publishing, and merchandising. This includes sales from digital streaming platforms, physical album sales, licensing deals, and artist management. Groupe Canal+ contributes through its pay-TV operations, broadcasting rights, and content production, offering subscription-based television services and selling advertising space. The Havas Group, another important subsidiary, provides advertising, marketing, and corporate communications services, earning revenue from client contracts and strategic partnerships. Additionally, Vivendi benefits from its investments in telecommunications, gaining financial returns from stakes in telecom companies. The company's earnings are bolstered by its strategic acquisitions, international expansion, and synergies across its media and content assets.

Vivendi Earnings Call Summary

Earnings Call Date:Mar 06, 2025

(Q4-2024)

% Change Since: 28.38%|

Next Earnings Date:Jul 31, 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.

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's financial performance is challenged by a decline in revenue and profitability, with significant net losses due to asset spin-offs. Increased leverage on the balance sheet is a concern, despite stable equity ratios. Cash flow remains a positive aspect, indicating reliance on cash flow generation over profitability.

Income Statement

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Neutral

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.86B	297.00M	10.51B	9.60B	9.57B	16.09B
Gross Profit	7.08B	86.00M	4.82B	4.24B	4.21B	7.28B
EBITDA	1.45B	101.00M	1.43B	961.00M	1.56B	1.06B
Net Income	389.00M	-6.00B	405.00M	-1.01B	24.69B	1.44B
Balance Sheet
Total Assets	39.15B	7.93B	38.25B	31.28B	33.37B	38.12B
Cash, Cash Equivalents and Short-Term Investments	1.14B	107.00M	2.19B	2.55B	4.46B	1.11B
Total Debt	9.08B	2.69B	9.11B	4.13B	4.98B	7.34B
Total Liabilities	21.30B	3.34B	21.01B	13.68B	14.17B	21.69B
Stockholders Equity	16.92B	4.59B	17.11B	17.37B	18.98B	15.76B
Cash Flow
Free Cash Flow	839.00M	1.84B	546.00M	363.00M	1.18B	788.00M
Operating Cash Flow	1.34B	1.84B	951.00M	748.00M	1.64B	1.23B
Investing Cash Flow	298.00M	-2.13B	808.00M	-695.00M	-3.75B	-1.65B
Financing Cash Flow	-2.17B	-1.83B	-1.47B	-1.44B	4.43B	-675.00M

Vivendi Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3.80

Price Trends

50DMA

3.25

Positive

100DMA

3.07

Positive

200DMA

3.45

Positive

Market Momentum

MACD

0.06

Negative

RSI

77.37

Negative

STOCH

100.00

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIVHY, the sentiment is Positive. The current price of 3.8 is above the 20-day moving average (MA) of 3.33, above the 50-day MA of 3.25, and above the 200-day MA of 3.45, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 77.37 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIVHY.

Vivendi Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWSA	79 Outperform	$17.77B	34.98	5.88%	0.67%	-5.43%	135.46%
WMG	68 Neutral	$16.27B	36.29	89.20%	2.32%	-0.91%	-14.87%
VIVHY	63 Neutral	$3.84B	9.21	2.26%	134.44%	―	―
WBD	60 Neutral	$31.54B	―	-27.69%	―	-5.58%	-254.85%
PARA	58 Neutral	$9.17B	―	-28.56%	1.92%	-4.50%	-898.86%
SIRI	56 Neutral	$7.96B	―	-37.30%	5.70%	-4.08%	-248.39%
Sector *	55 Neutral	HK$66.95B	-2.14	-3.62%	6.52%	-4.24%	-17.51%

* Communication Services Sector Average

Performance Comparison

VIVHY

Vivendi

3.92

-1.00

-20.33%

PARA

Paramount Global Class B

13.03

1.50

13.01%

NWSA

News Corp

29.16

1.27

4.55%

SIRI

Sirius XM Holdings

23.56

-12.88

-35.35%

WMG

Warner Music Group

31.01

-0.26

-0.83%

WBD

Warner Bros

12.80

4.18

48.49%

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.Date of analysis: Jul 19, 2025