ABC Arbitrage (ABCA) AI Stock Analysis

• Market Cap: €331.72M
• Dividend Yield: 4.29%
• Average Volume (3M): 43.48K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.27
• Revenue Growth: 53.67%
• EPS Growth: 116.00%
• Country: FR
• Employees: 108
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.30
• Shares Outstanding: 59,608,880
• 10 Day Avg. Volume: 57,982
• 30 Day Avg. Volume: 43,476
• PEG Ratio: 0.17
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 5.53
• P/FCF Ratio: 13.46
• 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: €7.40
• Price Target Upside: 32.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: €6.50 ▲(16.07% Upside)

ABC Arbitrage's strong financial performance and attractive valuation are offset by bearish technical indicators. The company's robust balance sheet and high dividend yield are significant strengths, but the declining revenue trend and negative market momentum present risks.

ABC Arbitrage Business Overview & Revenue Model

Company Description

ABC arbitrage SA, together with its subsidiaries, develops arbitrage strategies for liquid assets worldwide. It develops liquidity, statistical, risk, and derivatives arbitrage strategies; and provides asset and portfolio management services. The company was incorporated in 1995 and is based in Paris, France.

How the Company Makes Money

ABC Arbitrage generates revenue primarily through its trading activities, where it profits from the differences in prices of financial instruments across different markets. The company employs a quantitative trading strategy that involves high-frequency trading and market making, allowing it to earn small margins on large volumes of trades. Additionally, ABC Arbitrage may earn fees from providing liquidity to other market participants and potentially from partnerships with financial institutions that seek to utilize its trading expertise. The company's earnings are significantly influenced by market volatility and liquidity, with higher trading volumes typically leading to increased revenue.

ABC Arbitrage Financial Statement Overview

Summary

ABC Arbitrage exhibits strong financial health with high profitability and low leverage. Despite a declining revenue trend, the firm maintains robust margins and a solid balance sheet. Cash flow management is effective, supporting operational requirements and strategic investments.

Income Statement

ABC Arbitrage has demonstrated strong net profit margins and consistent profitability over the years, with a net profit margin of 52.2% in 2024. However, there has been a noticeable decline in revenue over the recent periods, with a revenue growth rate of -16.0% from 2022 to 2023 and a further drop to 2024. EBIT and EBITDA margins are unavailable for 2024, which raises concerns about operational efficiency.

Balance Sheet

The company's balance sheet is robust, with zero debt in 2024, resulting in an excellent debt-to-equity ratio. The equity ratio is also strong at 92.0%, and the return on equity (ROE) is impressive at 16.4% for 2024, indicating effective use of equity to generate profits. Overall, ABC Arbitrage maintains a stable financial position with low leverage.

Cash Flow

ABC Arbitrage's cash flow is healthy, characterized by positive free cash flow and an operating cash flow to net income ratio of 0.79 in 2024. However, the free cash flow growth rate has stagnated due to relatively stable operating cash flows. The company effectively manages its investments and financing activities, ensuring steady cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.13M	51.41M	39.81M	61.44M	64.34M	69.11M
Gross Profit	27.10M	48.54M	19.02M	45.92M	50.00M	51.26M
EBITDA	31.75M	-882.00K	18.39M	30.85M	37.11M	37.09M
Net Income	35.66M	26.84M	16.48M	29.15M	28.04M	35.09M
Balance Sheet
Total Assets	190.36M	178.36M	172.11M	187.33M	185.20M	173.06M
Cash, Cash Equivalents and Short-Term Investments	173.00M	161.39M	156.95M	168.40M	152.24M	159.09M
Total Debt	3.33M	4.04M	4.84M	5.70M	5.39M	1.15M
Total Liabilities	15.93M	14.23M	16.70M	25.67M	25.18M	19.03M
Stockholders Equity	174.43M	164.13M	155.41M	161.66M	160.02M	154.03M
Cash Flow
Free Cash Flow	0.00	21.11M	19.98M	24.40M	34.05M	24.33M
Operating Cash Flow	24.96M	21.11M	19.98M	24.40M	34.05M	24.33M
Investing Cash Flow	-840.00K	-1.20M	-2.06M	-890.00K	-707.00K	-1.03M
Financing Cash Flow	-20.89M	-19.40M	-22.93M	-27.54M	-23.86M	-22.32M

ABC Arbitrage Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ABCA, the sentiment is Neutral. The current price of 5.6 is above the 20-day moving average (MA) of 5.57, below the 50-day MA of 5.73, and below the 200-day MA of 5.65, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 61.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ABCA.

ABC Arbitrage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABCA	69 Neutral	€331.72M	9.30	21.46%	4.29%	53.67%	116.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MF	66 Neutral	€3.45B	11.68	-2.85%	5.83%	9.86%	-118.70%
TKO	61 Neutral	€3.17B	17.36	5.94%	4.37%	12.44%	12.15%
ALBON	50 Neutral	€109.66M	112.19	―	3.16%	-27.33%	-87.37%
RF	49 Neutral	€4.21B	―	-8.86%	4.39%	11.76%	-735.88%