Tarkett (TKTT) AI Stock Analysis

• Market Cap: €1.10B
• Dividend Yield: N/A
• Average Volume (3M): 12.06K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.13
• Revenue Growth: -0.93%
• EPS Growth: -407.45%
• Country: FR
• Employees: 11,635
• Sector: Real Estate
• Sector Strength: 66
• Industry: Construction
• EPS (TTM): -0.96
• Shares Outstanding: 65,550,280
• 10 Day Avg. Volume: 14,454
• 30 Day Avg. Volume: 12,064
• PEG Ratio: 0.06
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.76
• 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: N/A
• Number of Analyst Covering: 0

Tarkett's overall stock score reflects a combination of robust cash flow generation and positive technical indicators, countered by challenges in profitability and valuation concerns due to a negative P/E ratio. The company's stable equity levels and improved EBITDA margin are positive, but the increased leverage and negative return on equity highlight areas of risk, necessitating strategic improvements.

Tarkett Business Overview & Revenue Model

Company Description

Tarkett (TKTT) is a global leader in the flooring and sports surface solutions industry. The company operates in various sectors, including commercial, residential, and sports markets, offering a diverse range of products such as vinyl, laminate, wood, carpet, and linoleum flooring, as well as artificial turf for sports facilities. With a strong commitment to sustainability and innovation, Tarkett serves customers in over 100 countries, providing high-quality, durable, and environmentally friendly solutions.

How the Company Makes Money

Tarkett makes money primarily through the sale of its flooring and sports surface products across multiple market segments. The company's revenue streams are diversified across commercial and residential building projects, as well as sports facilities. Tarkett leverages its extensive distribution network and partnerships with architects, designers, and construction companies to increase market penetration and sales. Additionally, its focus on sustainable and innovative products allows it to capture a growing demand for eco-friendly building materials, contributing significantly to its earnings.

Tarkett Financial Statement Overview

Summary

Tarkett's financials reveal mixed performance. While the company faces challenges in revenue growth and profitability, as highlighted by a negative net margin and declining revenue, it maintains robust cash flow generation and stable equity levels. The increased leverage and negative return on equity warrant caution, suggesting the need for strategic focus on improving profitability and managing debt levels effectively.

Income Statement

Tarkett shows a declining revenue trend with a decrease from EUR 3,363 million in 2023 to EUR 3,331 million in 2024. Gross profit margin decreased to 19.51% in 2024 from 21.93% in 2023, reflecting potential pricing pressure or cost increases. The net profit margin turned negative in 2024 at -1.88%, signaling challenges in profitability. However, the EBITDA margin improved to 7.77% from 6.84%, indicating some operational efficiency gains.

Balance Sheet

The debt-to-equity ratio increased to 0.97 in 2024 from 0.90 in 2023, indicating higher leverage, which could pose financial risk. Return on equity dropped to -7.65% due to negative net income, undermining shareholder returns. Equity ratio remained stable at around 32.92%, showing a consistent capital structure.

Cash Flow

Free cash flow grew slightly by 3.02% to EUR 191 million in 2024, demonstrating solid cash generation. The operating cash flow to net income ratio was negatively impacted due to the net loss, but operating cash flow remained robust at EUR 287 million. The free cash flow to net income ratio is positive, indicating effective cash management despite the net loss.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.33B	3.36B	3.36B	2.79B	2.63B
	Gross Profit
650.00M	737.50M	605.10M	550.60M	578.80M
	EBIT
36.20M	137.90M	44.40M	59.60M	32.30M
	EBITDA
258.80M	230.20M	190.00M	202.00M	248.20M
	Net Income Common Stockholders
-62.60M	20.40M	-26.00M	15.10M	-19.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
352.40M	224.30M	220.80M	205.40M	328.60M
	Total Assets
2.48B	2.48B	2.61B	2.42B	2.34B
	Total Debt
790.30M	776.10M	875.60M	681.10M	802.40M
	Net Debt
437.90M	551.80M	654.80M	475.70M	473.80M
	Total Liabilities
1.66B	1.62B	1.69B	1.58B	1.57B
	Stockholders Equity
818.10M	862.70M	911.60M	840.20M	770.30M
Cash Flow		Free Cash Flow
191.20M	185.60M	-115.80M	44.80M	190.00M
	Operating Cash Flow
287.20M	278.50M	-19.10M	117.60M	264.10M
	Investing Cash Flow
-125.40M	-94.90M	-98.10M	-68.40M	-68.90M
	Financing Cash Flow
-28.30M	-154.30M	130.00M	-178.40M	-1.20M

Tarkett Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:TKTT, the sentiment is Positive. The current price of 16.9 is above the 20-day moving average (MA) of 16.81, above the 50-day MA of 16.58, and above the 200-day MA of 11.94, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:TKTT.

Tarkett Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMS	81 Outperform	$265.69B	57.80	28.67%	0.96%	12.98%	6.62%
HO	77 Outperform	€49.12B	47.39	14.05%	1.44%	11.66%	3.13%
VETO	72 Outperform	€862.13M	14.65	10.64%	1.17%	1.88%	5.79%
TKTT	61 Neutral	€1.10B	29.10	-7.45%	―	-0.93%	-407.45%
Sector *	60 Neutral	$2.83B	10.92	0.21%	8543.15%	5.98%	-17.76%
COV	58 Neutral	€5.46B	76.99	0.84%	5.07%	3.97%	―
WLN	54 Neutral	€1.50B	―	-3.53%	―	0.47%	63.72%