NRJ Group (NRG) AI Stock Analysis

• Market Cap: €625.16M
• Dividend Yield: 3.59%
• Average Volume (3M): 12.83K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.26
• Revenue Growth: -9.30%
• EPS Growth: -47.10%
• Country: FR
• Employees: 1,509
• Sector: Services
• Sector Strength: N/A
• Industry: Broadcasting
• EPS (TTM): 0.06
• Shares Outstanding: 78,107,620
• 10 Day Avg. Volume: 12,442
• 30 Day Avg. Volume: 12,827
• PEG Ratio: -1.87
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 12.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: €9.00 ▲(11.39% Upside)

NRJ Group's strong financial performance, characterized by consistent revenue growth and robust balance sheet, is the most significant factor driving the score. Positive technical indicators further support the stock's outlook, although a relatively high P/E ratio tempers the valuation appeal. The absence of earnings call and corporate events data did not impact the score.

NRJ Group Business Overview & Revenue Model

Company Description

NRJ Group (NRG) is a leading multimedia company based in France, primarily operating in the radio broadcasting sector. The company is known for its popular radio stations, including NRJ, Chérie FM, and Rire & Chansons, which cater to diverse audiences with a variety of music and entertainment formats. In addition to radio, NRJ Group is involved in television production, digital media, and event organization, making it a significant player in the French media landscape.

How the Company Makes Money

NRJ Group generates revenue primarily through advertising sales on its radio stations and digital platforms. The company sells airtime to advertisers who wish to reach its large listener base. Additionally, NRJ Group earns income from partnerships and sponsorships, which often involve collaborative promotional activities with brands. The company also monetizes its television content through advertising and potentially through syndication. Live events and concerts organized by NRJ can contribute to revenue as well, through ticket sales and sponsorship deals. Overall, the combination of advertising, partnerships, and live events forms the core of NRJ Group's revenue model.

NRJ Group Financial Statement Overview

Summary

NRJ Group exhibits a commendable financial position with consistent revenue growth, strong profitability margins, and a robust balance sheet with low leverage. Despite a slight decline in net profit margin and free cash flow growth, the company's efficient cash flow management and solid equity position mitigate potential risks.

Income Statement

NRJ Group has demonstrated consistent revenue growth, with a notable increase of 1.1% from 2023 to 2024. The company maintains a solid gross profit margin of 71.9% in 2024, reflecting efficient cost management. However, the net profit margin has slightly decreased from 11.0% to 10.1% from 2023 to 2024, suggesting some pressure on profitability. EBIT and EBITDA margins remain stable, indicating healthy operational performance.

Balance Sheet

The balance sheet of NRJ Group is robust, with a strong equity ratio of 77.8%, indicating financial stability and low reliance on debt. The debt-to-equity ratio is a low 0.05, highlighting minimal leverage risks. Additionally, the return on equity (ROE) is healthy at 5.8%, although it has slightly declined from the previous year, reflecting moderate efficiency in generating profits from shareholders' equity.

Cash Flow

NRJ Group shows strong cash flow management with a positive free cash flow, despite a 5.2% decline from 2023 to 2024. The operating cash flow to net income ratio is 1.6, indicating effective cash conversion from earnings. The free cash flow to net income ratio is also favorable at 1.05, suggesting that the company is generating sufficient free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	377.47M	413.90M	409.24M	398.10M	378.62M	336.16M
Gross Profit	138.07M	297.71M	288.63M	96.02M	69.46M	42.58M
EBITDA	67.72M	91.64M	90.02M	76.63M	67.94M	77.09M
Net Income	26.44M	41.97M	45.17M	34.68M	27.60M	40.11M
Balance Sheet
Total Assets	886.96M	925.96M	910.50M	891.96M	880.94M	856.53M
Cash, Cash Equivalents and Short-Term Investments	354.41M	356.82M	336.98M	325.95M	303.66M	294.39M
Total Debt	37.48M	38.35M	35.86M	41.27M	43.37M	45.50M
Total Liabilities	183.87M	205.49M	206.22M	212.61M	222.46M	210.39M
Stockholders Equity	702.66M	720.07M	703.84M	678.99M	658.14M	645.77M
Cash Flow
Free Cash Flow	51.82M	44.05M	46.47M	52.87M	39.41M	29.13M
Operating Cash Flow	71.63M	67.21M	71.77M	69.32M	57.66M	43.75M
Investing Cash Flow	-20.65M	-23.60M	-28.05M	-16.58M	-18.15M	-14.63M
Financing Cash Flow	-33.62M	-23.28M	-21.93M	-29.14M	-30.24M	35.78M

NRJ Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:NRG, the sentiment is Positive. The current price of 8.08 is above the 20-day moving average (MA) of 8.07, above the 50-day MA of 7.67, and above the 200-day MA of 7.11, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 32.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:NRG.

NRJ Group 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%	7.16%	-0.32%	0.64%
VIV	―	€2.99B	7.89	―	1.31%	―	―
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
DEEZR	―	€133.72M	-9.39	―	―	4.14%	64.46%
ALLAM	―	―	―	―	―	12.71%	-433.73%