JCDecaux SA (DEC) AI Stock Analysis

• Market Cap: €3.25B
• Dividend Yield: 3.57%
• Average Volume (3M): 110.91K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.99
• Revenue Growth: 5.80%
• EPS Growth: -9.84%
• Country: FR
• Employees: 11,434
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.35
• Shares Outstanding: 214,128,660
• 10 Day Avg. Volume: 114,254
• 30 Day Avg. Volume: 110,914
• PEG Ratio: 0.53
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 3.99
• 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: €20.22
• Price Target Upside: 31.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: €17.00 ▲(10.32% Upside)

JCDecaux SA's overall stock score is driven by its solid financial performance, characterized by strong revenue growth and robust cash flow generation. The technical analysis indicates a stable trend, while the valuation metrics suggest the stock is reasonably priced with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The company's strong revenue growth reflects its ability to capture market opportunities and expand its advertising reach, indicating a solid business model and market position.

Cash Flow Generation

Robust cash flow generation supports financial stability and provides flexibility for strategic investments, debt reduction, or shareholder returns, enhancing long-term business sustainability.

Operational Efficiency

A strong EBITDA margin indicates effective cost management and operational efficiency, which can sustain profitability and competitive advantage in the advertising industry.

Negative Factors

Leverage Concerns

Moderate leverage could pose risks in volatile markets, potentially impacting financial flexibility and increasing vulnerability to economic downturns.

Earnings Volatility

The absence of EBIT indicates potential earnings volatility, which may affect investor confidence and the company's ability to sustain long-term profitability.

EPS Decline

A decline in EPS growth suggests challenges in maintaining profitability and could indicate underlying issues in cost management or revenue generation strategies.

JCDecaux SA Business Overview & Revenue Model

Company Description

JCDecaux SA engages in the outdoor advertising activities worldwide. It operates through three segments: Street Furniture, Transport, and Billboard. The Street Furniture segment is involved in advertising in shopping malls; renting of street furniture; selling and renting of equipment; and the provision of cleaning, maintenance, and other activities. The Transport segment provides advertising services in public transport systems, such as airports, metros, buses, tramways, and trains. The Billboard segment is involved in advertising on private property, including traditional large format or back-light billboards; and the provision of neon-light billboards and advertising wraps. The company was founded in 1964 and is based in Neuilly-sur-Seine, France. JCDecaux SA is a subsidiary of JCDecaux Holding SAS.

How the Company Makes Money

JCDecaux generates revenue primarily through the leasing of advertising space on its street furniture, billboards, and transport-related advertising platforms. The company earns income from long-term contracts with municipalities and transport authorities, who provide JCDecaux exclusive rights to manage and display advertising in public spaces. Key revenue streams include advertising fees paid by brands for space on digital and traditional formats, as well as additional income from partnerships with media companies and technology providers that enhance its advertising capabilities. The company's strong relationships with municipalities and its ability to innovate in urban advertising solutions also contribute significantly to its earnings.

JCDecaux SA Financial Statement Overview

Summary

JCDecaux SA exhibits solid financial health with strong revenue growth and profitability metrics. While there is moderate leverage, the company maintains a stable equity position. Cash flow generation is robust, supporting overall financial stability. The absence of EBIT in 2024 is a concern but offset by strong EBITDA performance.

Income Statement

JCDecaux SA demonstrated a positive revenue growth of 10.21% from 2023 to 2024, reflecting a strong recovery trend. The gross profit margin stands at 53.7%, indicating effective cost management, though the absence of EBIT is notable. A net profit margin of 7.12% for 2024 shows improved profitability. The EBITDA margin is robust at 37.84%, highlighting strong operational efficiency.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 2.02, suggesting moderate leverage which could indicate potential risk in volatile markets. However, the company maintains a solid equity ratio of 25.55%, showcasing a stable financial position. The return on equity is healthy at 11.76%, demonstrating effective utilization of shareholder funds.

Cash Flow

Free cash flow growth rate from 2023 to 2024 is 11.37%, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 4.37 suggests efficient cash conversion from earnings. The free cash flow to net income ratio of 3.13 further underlines strong cash flow support for profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.63B	3.30B	3.07B	2.52B	2.10B
Gross Profit	1.95B	1.83B	818.50M	551.00M	280.50M
EBITDA	1.36B	1.31B	1.34B	1.15B	743.10M
Net Income	258.90M	209.20M	132.10M	-14.50M	-604.60M
Balance Sheet
Total Assets	8.62B	9.26B	10.06B	9.50B	10.07B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.69B	1.97B	1.56B	1.66B
Total Debt	4.45B	5.46B	6.43B	6.21B	6.99B
Total Liabilities	6.30B	7.21B	8.26B	7.85B	8.45B
Stockholders Equity	2.20B	1.95B	1.76B	1.62B	1.60B
Cash Flow
Free Cash Flow	811.30M	728.50M	748.40M	832.80M	669.30M
Operating Cash Flow	1.13B	1.10B	1.10B	1.00B	888.10M
Investing Cash Flow	-252.30M	-338.30M	-423.20M	-172.70M	-274.60M
Financing Cash Flow	-1.22B	-1.05B	-274.50M	-931.80M	849.60M

JCDecaux SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:DEC, the sentiment is Positive. The current price of 15.41 is above the 20-day moving average (MA) of 15.31, above the 50-day MA of 15.12, and above the 200-day MA of 15.12, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:DEC.

JCDecaux SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUB	―	€21.66B	12.67	17.51%	4.21%	9.88%	16.84%
DEC	―	€3.25B	13.53	11.69%	3.57%	5.80%	-9.84%
ALREW	―	€92.90M	3.76	12.60%	1.22%	-3.53%	28.87%
ALDUX	―	€12.85M	3.71	216.14%	―	-0.08%	23.11%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LOCAL	―	€57.00M	0.47	―	―	-0.78%	―
ALINV	―	€3.54M	―	―	―	-13.31%	-375.69%