Deezer SA (DEEZR) AI Stock Analysis

• Market Cap: €133.72M
• Dividend Yield: N/A
• Average Volume (3M): 10.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 4.14%
• EPS Growth: 64.46%
• Country: FR
• Employees: 552
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.06
• Shares Outstanding: 119,229,430
• 10 Day Avg. Volume: 12,821
• 30 Day Avg. Volume: 10,954
• PEG Ratio: 0.11
• Price to Book (P/B): -0.68
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 11.97
• 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: €1.30
• Price Target Upside: 30.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: €1.00 ▲(0.00% Upside)

Deezer SA's stock score is primarily impacted by financial instability and bearish technical indicators. While there is revenue growth and improved cash flow, the negative equity and high liabilities are significant risks. The lack of positive valuation metrics further weighs down the score.

Deezer SA Business Overview & Revenue Model

Company Description

Deezer S.A. provides music streaming services worldwide. The company streams songs, audio books, podcast, and radio channels. It offers its music steaming services through website, Deezer.com and other wireless audio systems; and operates in approximately 180 countries. The company is based in Paris, France.

How the Company Makes Money

Deezer generates revenue primarily through its subscription-based model and advertising services. The company offers a premium subscription service, Deezer Premium, which provides users with an ad-free experience, offline listening, and high-quality audio streaming. Subscription fees from this service constitute a significant portion of Deezer's revenue. Additionally, Deezer offers a free, ad-supported version of its platform, where revenue is earned through advertisements displayed to non-paying users. Significant partnerships with telecommunications companies and other digital service providers also contribute to Deezer's revenue by bundling its services with other offerings or through direct integrations. These partnerships help expand Deezer's reach and attract new subscribers, further driving revenue growth.

Deezer SA Financial Statement Overview

Summary

Deezer SA is experiencing revenue growth and improvements in cash flow, but continues to face challenges with profitability and balance sheet stability. The negative equity and high liabilities are concerning, although operational improvements are evident.

Income Statement

The company has shown a steady increase in total revenue over the years, with a notable revenue growth rate of 11.77% from 2023 to 2024. However, profitability remains a challenge, as indicated by negative EBIT and net profit margins in 2024, despite improvements from the previous year. The gross profit margin increased slightly to 22.81% in 2024, reflecting some operational improvements.

Balance Sheet

The balance sheet reveals high leverage with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be reliably calculated due to negative equity, but the overall trajectory shows increasing liabilities. The equity ratio is negative, reflecting that liabilities exceed assets, which poses a risk to financial stability.

Cash Flow

Cash flow statements show a positive trend with significant improvement in operating cash flow in 2024. The company achieved a positive free cash flow in 2024, indicating better cash management. However, the free cash flow to net income ratio is not meaningful due to negative net income, though the improved cash flow suggests potential for future profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	540.85M	541.72M	484.66M	451.20M	400.02M	379.19M
Gross Profit	133.94M	123.57M	75.11M	65.10M	48.53M	61.66M
EBITDA	-1.63M	-13.56M	-41.41M	-155.28M	-108.75M	-84.61M
Net Income	-14.18M	-25.89M	-57.67M	-167.70M	-123.26M	-95.36M
Balance Sheet
Total Assets	180.93M	184.14M	195.00M	234.06M	134.48M	152.97M
Cash, Cash Equivalents and Short-Term Investments	59.80M	62.06M	63.60M	113.61M	35.10M	52.44M
Total Debt	26.21M	32.11M	40.56M	49.35M	26.89M	28.45M
Total Liabilities	429.71M	425.60M	420.98M	415.88M	351.81M	284.17M
Stockholders Equity	-248.78M	-241.46M	-226.92M	-184.69M	-217.33M	-131.20M
Cash Flow
Free Cash Flow	5.57M	13.66M	-42.09M	-51.83M	-33.69M	-15.68M
Operating Cash Flow	6.58M	15.48M	-39.99M	-48.78M	-31.64M	-8.93M
Investing Cash Flow	-792.00K	-3.63M	-1.98M	279.08M	-9.63M	-2.88M
Financing Cash Flow	-10.91M	-10.62M	-8.43M	-152.50M	23.83M	-8.10M

Deezer SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.00
• 50DMA: Negative
• 100DMA: Negative
• 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:DEEZR, the sentiment is Negative. The current price of 1 is below the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.15, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 35.63 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 Negative sentiment for FR:DEEZR.

Deezer SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRG	―	€625.16M	23.65	4.56%	3.59%	-9.30%	-47.10%
MMT	―	€1.53B	10.36	11.94%	10.33%	-4.71%	-31.54%
TFI	―	€1.79B	9.54	9.58%	7.21%	-0.32%	0.64%
BLV	―	―	―	―	―	12.33%	46.47%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DEEZR	―	€133.72M	-9.39	―	―	4.14%	64.46%
VANTI	―	€62.37M	―	―	―	-15.63%	-67.81%