Eurazeo (RF) AI Stock Analysis

• Market Cap: €4.09B
• Dividend Yield: 4.52%
• Average Volume (3M): 157.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 11.76%
• EPS Growth: -735.88%
• Country: FR
• Employees: 549
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -4.24
• Shares Outstanding: 71,925,760
• 10 Day Avg. Volume: 147,889
• 30 Day Avg. Volume: 157,155
• PEG Ratio: 0.10
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 13.65
• P/FCF Ratio: -231.49
• 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: €92.50
• Price Target Upside: 57.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €60.00 ▲(2.04% Upside)

Eurazeo's overall stock score is primarily impacted by its financial performance challenges, including negative profit margins and cash flow issues. The technical analysis provides some support with moderate bullish indicators, while valuation concerns persist due to a negative P/E ratio. The attractive dividend yield offers some compensation for these risks.

Eurazeo Business Overview & Revenue Model

Company Description

Eurazeo SE is a private equity and venture capital firm specializing in growth capital, acquisitions, leveraged buyouts, and buyins of a private company, and investments in mid-market and listed public companies. . The company invest in equity in the small-mid and Mid-large buyout segments. The firm seeks to invest in medium-sized or large companies, SMEs, high growth companies, and real estate management and investment activities. It does not have any restrictions regarding the sectors in which it invests but prefers to invest in smart cities, services, leisure and mobility, real estate, fintech, investment activities, distribution, industry, luxury, consumer goods, business services, consumer and retail brands, and health sectors. The firm seeks to invest in consumer brands with a focus on beauty, personal care, household care, juvenile products, apparel, wellness, accessories, home, jewelry, leisure, health, fitness, beverage, and food companies based in United States and Europe. It typically invests in companies with a differentiated concept and global growth potential. The firm identifies companies upstream, carefully selecting them primarily from sectors driven by digital transformation and focusing on changes in lifestyle and consumption (mobility, online buying, collaboration models, etc.). The firm invests in large properties in need of restructuring; residential, commercial, and office development projects; and companies with real estate assets in Western Europe. It primarily invests in United States, France, Italy, North America and other European countries. The firm typically invests between $10 million and €800 million ($892.55 million) in companies with enterprise values of more than €150/200 million ($163.74 million/$218.30 million) and €5000 million ($7108.9 million). It limits each investment to less than 10 percent to 15 percent of its net asset value. The firm can also invest where its equity or quasi-equity stake is between €175 million ($195.25 million) and €800 million ($892.55 million). The firm prefers to make investments with transactions above $100 million as co-investments. It prefers to acquire majority stakes in its portfolio companies along with minority stakes. The firm may invest in public companies either taking the public company to private, and then doing a leveraged buyout or in the form of private investment in public equity (PIPE). The firm invests for a period of five to seven years. It exits its investment by sale to a manufacturer, sale to a financial investor, or through an IPO. Eurazeo SE was founded in 1969 and is based in Paris, France with additional offices in North America, Asia, Europe and South America.

How the Company Makes Money

Eurazeo generates revenue primarily through management fees and carried interest from its investments. The company manages several funds that collect fees based on the assets under management (AUM). These management fees provide a steady income stream, while carried interest, which is a share of the profits generated from successful investments, represents a significant revenue source once portfolio companies are exited profitably. Additionally, Eurazeo benefits from its strategic partnerships and co-investments, which can enhance returns and mitigate risks. The firm also invests directly in companies, allowing it to earn returns on equity stakes over time, particularly when these companies achieve growth and are sold or go public.

Eurazeo Financial Statement Overview

Summary

Eurazeo is experiencing financial difficulties, with significant volatility in income and cash flow. The income statement shows a negative net profit margin and inconsistent revenue growth. The balance sheet remains relatively strong with a high equity ratio, but the cash flow statement highlights challenges in generating positive free cash flow, indicating operational inefficiencies.

Income Statement

Eurazeo's income statement reveals significant volatility. The gross profit margin improved in 2024, yet the company faced a dramatic decline in net income, resulting in a negative net profit margin. Revenue growth has been inconsistent, with a substantial drop in 2024. EBIT and EBITDA margins for 2024 were negative, indicating operational challenges. Past performance shows some profitability with positive margins, but the recent downturn is concerning.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio, suggesting financial stability. Debt-to-equity ratio is manageable, indicating controlled leverage. However, the decline in stockholders' equity from 2023 to 2024 and the increase in total debt are potential risks. Return on equity was strong in previous years but turned negative in 2024, reflecting recent profitability issues.

Cash Flow

Eurazeo's cash flow statement highlights challenges in generating positive free cash flow, with consistent negative values. Operating cash flow has been persistently negative, indicating operational inefficiencies. The free cash flow to net income ratio is unfavorable due to negative net income and cash flow, which may pose liquidity concerns if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.12M	380.85M	404.95M	5.59B	6.15B	3.97B
Gross Profit	1.47M	261.39M	310.33M	2.41B	3.52B	1.71B
EBITDA	-532.15M	-327.05M	1.94B	1.40B	2.82B	886.49M
Net Income	-633.92M	-429.79M	1.82B	594.65M	1.57B	-160.48M
Balance Sheet
Total Assets	8.93B	9.42B	9.77B	18.86B	16.30B	13.83B
Cash, Cash Equivalents and Short-Term Investments	201.73M	123.78M	151.98M	1.08B	1.78B	1.30B
Total Debt	1.63B	1.43B	940.38M	5.91B	4.52B	4.70B
Total Liabilities	2.04B	1.87B	1.41B	9.57B	7.93B	7.73B
Stockholders Equity	6.63B	7.26B	8.10B	6.48B	6.16B	4.67B
Cash Flow
Free Cash Flow	74.41M	-22.45M	-24.18M	-456.67M	-120.11M	-90.97M
Operating Cash Flow	75.22M	-7.04M	-11.61M	-12.02M	139.63M	141.73M
Investing Cash Flow	-81.27M	-25.81M	-1.30B	-341.95M	-485.05M	-741.14M
Financing Cash Flow	-24.52M	-70.93M	390.55M	25.69M	522.08M	688.69M

Eurazeo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 58.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RF, the sentiment is Neutral. The current price of 58.8 is below the 20-day moving average (MA) of 59.98, above the 50-day MA of 57.25, and below the 200-day MA of 61.96, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 19.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:RF.

Eurazeo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANTIN	76 Outperform	€1.91B	15.43	25.43%	6.50%	9.60%	5.96%
PEUG	75 Outperform	€1.79B	44.86	0.83%	4.51%	-48.21%	-64.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MF	65 Neutral	€3.50B	-38.06	-2.85%	5.83%	9.86%	-118.70%
TKO	61 Neutral	€3.01B	16.56	5.94%	4.42%	12.44%	12.15%
RF	54 Neutral	€4.09B	-6.62	-8.86%	4.52%	11.76%	-735.88%