Damartex SA (ALDAR) AI Stock Analysis

Damartex SA

(Paris:ALDAR)

Select Model

Rating:28Underperform

Price Target:EUR 2.50▲(5.93% Upside)

Action:reiterated

Date:03/13/26

The stock presents a high-risk investment thesis dominated by severe operational and technical deterioration. Financial performance (40% weight) is the primary concern: persistent net losses, sharp debt accumulation, and equity erosion reflect fundamental business stress in a challenging retail environment, partially offset only by modest cash flow recovery. Technical analysis (30% weight) compounds this weakness with extreme oversold conditions (RSI 17.3), negative MACD momentum, and sustained price decline below all major moving averages, signaling capitulation and continued downside risk. Valuation (30% weight) provides no relief, with negative earnings rendering traditional P/E analysis meaningless and absent dividend support. The company faces both operational headwinds and technical capitulation with minimal catalysts evident. Recovery would require significant operational turnaround and stabilization to restore investor confidence.

Positive Factors

Cash generation resilienceDespite accounting losses, the group has repeatedly generated positive operating and free cash flow through 2023–2025. Durable cash generation supports day-to-day operations, funds working capital, and provides runway to execute restructuring or deleveraging plans without immediate external financing, but the 2025 FCF decline raises caution.

Negative Factors

Recurring net lossesMulti-year unprofitability erodes equity and constrains reinvestment capacity. Persistent losses reduce retained earnings, limit funds available for marketing, product development and fulfillment improvements, and increase reliance on external financing or asset dispositions to cover operating shortfalls over the medium term.

Damartex SA (ALDAR) vs. iShares MSCI France ETF (EWQ)

Market Cap: EUR 26.62M
Dividend Yield: ―
Average Volume (3M): 980
Price to Earnings (P/E): -0.8
Beta (1Y): 0.19
Revenue Growth: -3.40%
EPS Growth: -98.15%
Country: France
Employees: 2,547
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Retail

Damartex SA Business Overview & Revenue Model

Company Description

Damartex primarily supplies apparel and accessories to an older demographic across key European markets, including France, the United Kingdom, Belgium, and Germany. The company's operations are divided into three distinct segments: Fashion, Home & Li...

How the Company Makes Money

Damartex makes money mainly by selling merchandise (primarily apparel and, depending on the banner, home and related consumer products) directly to consumers through its brands. Revenue is generated when customers place orders through the group’s e-c...

Damartex SA Financial Statement Overview

Summary

Severe operational challenges persist with multi-year revenue decline (€764M to €521M) and persistent net losses of €17.7M in 2025. Debt surged to €281M while equity eroded to €71M, signaling high leverage risk. Modest positive signs include 6.8% recent revenue growth and improved operating cash flow, but these gains remain insufficient to offset core unprofitability and structural margin pressures in the retail sector.

Income Statement

28Negative

Balance Sheet

35Negative

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	515.93M	521.20M	529.18M	587.46M	718.98M	764.16M
Gross Profit	3.44M	1.82M	337.15M	-19.77M	-8.94M	20.50M
EBITDA	-260.84M	-400.00K	1.69M	10.04M	35.27M	55.27M
Net Income	-15.09M	-17.70M	-35.04M	-32.76M	-5.79M	16.24M
Balance Sheet
Total Assets	440.61M	422.61M	454.76M	509.26M	513.43M	497.00M
Cash, Cash Equivalents and Short-Term Investments	31.80M	15.56M	38.05M	51.16M	14.13M	60.63M
Total Debt	209.85M	281.04M	224.12M	208.81M	138.35M	116.41M
Total Liabilities	371.13M	352.63M	364.82M	393.22M	356.24M	339.46M
Stockholders Equity	71.20M	70.51M	90.67M	115.80M	157.09M	157.50M
Cash Flow
Free Cash Flow	24.99M	14.38M	20.98M	9.45M	-33.91M	50.64M
Operating Cash Flow	33.09M	20.32M	30.21M	13.49M	-17.55M	59.82M
Investing Cash Flow	-15.31M	-15.42M	-6.39M	-22.42M	-26.75M	-8.46M
Financing Cash Flow	60.93M	62.46M	15.21M	-25.07M	-23.23M	16.41M

Damartex SA Technical Analysis

Technical Analysis SentimentNegative

Last Price2.36

Price Trends

50DMA2.42Negative

100DMA2.42Negative

200DMA2.46Negative

Market Momentum

MACD-0.02Negative

RSI45.17Neutral

STOCH75.82Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALDAR, the sentiment is Negative. The current price of 2.36 is below the 20-day moving average (MA) of 2.38, below the 50-day MA of 2.42, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 75.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALDAR.

Damartex SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

FR:ALDAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FR:ALVU	68Neutral	EUR 146.79M	18.21	―	3.27%	15.92%	9.36%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FR:SMCP	52Neutral	EUR 307.20M	14.07	1.89%	―	-1.16%	47.64%
FR:ALSPT	47Neutral	EUR 3.65M	-1.68	-7.90%	―	-4.38%	-6.33%
FR:MDM	41Neutral	EUR 150.96M	-0.02	-779.90%	―	-4.22%	-137.06%
FR:ALDAR	28Underperform	EUR 26.23M	-0.76	―	―	-3.40%	-98.15%

* Consumer Cyclical Sector Average

Performance Comparison

FR:ALDAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FR:ALDAR	Damartex SA	2.36	-1.88	-44.34%
FR:MDM	Maisons du Monde	0.18	-1.84	-90.89%
FR:SMCP	SMCP SAS	3.93	-2.00	-33.73%
FR:ALMLB	Miliboo SA	1.69	0.09	5.62%
FR:ALSPT	Spartoo SAS	0.20	-0.13	-40.12%
FR:ALVU	Vente-Unique.com SA	15.30	0.60	4.08%

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: Mar 13, 2026

Damartex SA AI Stock Analysis