Pepco Group BV (PCO) AI Stock Analysis

• Market Cap: €14.86B
• Dividend Yield: 1.01%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 0.87%
• EPS Growth: -2157.00%
• Country: PL
• Employees: 29,462
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 0.54
• Shares Outstanding: 577,451,970
• 10 Day Avg. Volume: 1,930,334
• 30 Day Avg. Volume: 1,274,996
• PEG Ratio: <0.01
• Price to Book (P/B): 5.39
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 4.54
• 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: €26.07
• Price Target Upside: 0.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: zł26.00 ▲(0.08% Upside)

Pepco Group BV's overall stock score is primarily influenced by its financial performance challenges, including high leverage and negative profitability. While technical analysis shows bullish momentum, the overbought conditions suggest caution. The valuation is weak due to a negative P/E ratio, though the dividend yield offers a slight positive. The absence of earnings call and corporate events data means these factors did not influence the score.

Pepco Group BV Business Overview & Revenue Model

Company Description

Pepco Group BV (PCO) is a leading player in the retail and wholesale distribution of consumer goods, primarily operating within the European market. The company specializes in offering a diverse range of products, including household appliances, electronics, and everyday consumer items, through both brick-and-mortar stores and an online platform. PCO aims to provide value-driven products to its customers while maintaining a strong commitment to sustainability and innovation in its offerings.

How the Company Makes Money

Pepco Group BV generates revenue through multiple streams, primarily from its retail sales of consumer goods both in physical stores and online. The company benefits from a high volume of transactions due to its competitive pricing strategy and wide selection of products. Additionally, PCO has established key partnerships with various manufacturers and suppliers, allowing it to source products at favorable rates and pass savings onto customers. Revenue is further bolstered by seasonal promotions and marketing initiatives that drive traffic to its stores and website. The company's focus on expanding its market presence and enhancing customer experience also contributes to its earnings growth.

Pepco Group BV Financial Statement Overview

Summary

Pepco Group BV is experiencing modest revenue growth but faces significant profitability challenges, as evidenced by negative net income and high leverage. While cash flow generation has improved, the company's high debt levels and negative return on equity pose risks. Strategic measures to enhance profitability and reduce financial leverage are crucial for future stability and growth.

Income Statement

Pepco Group BV shows a modest revenue growth rate of 2.61% in the latest year, but the company is struggling with profitability as indicated by a negative net profit margin of -11.52% and a negative EBIT margin of -6.63%. The gross profit margin remains relatively stable at 43.88%, suggesting some operational efficiency. However, the negative net income highlights significant challenges in cost management or other expenses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.90, indicating significant leverage and potential financial risk. The return on equity is negative at -138.86%, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio stands at 12.79%, suggesting a low proportion of equity financing relative to total assets, which could be a concern for financial stability.

Cash Flow

Pepco Group BV's cash flow statement shows a strong free cash flow growth rate of 55.52%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.45 suggests that cash flows are not fully covering net income, but the free cash flow to net income ratio of 0.74 indicates better cash conversion. Despite the positive cash flow trends, the company needs to address profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.31B	6.17B	5.65B	4.82B	4.12B	3.52B
Gross Profit	2.77B	2.71B	2.27B	1.97B	1.77B	1.43B
EBITDA	504.76M	928.17M	400.18M	424.77M	349.36M	215.57M
Net Income	-915.06M	-710.17M	102.24M	173.60M	131.02M	-537.00K
Balance Sheet
Total Assets	3.53B	4.00B	4.59B	4.00B	3.58B	3.07B
Cash, Cash Equivalents and Short-Term Investments	341.12M	363.34M	330.42M	343.93M	507.70M	400.17M
Total Debt	1.95B	1.99B	2.02B	1.75B	1.71B	1.63B
Total Liabilities	3.21B	3.49B	3.43B	2.85B	2.57B	2.32B
Stockholders Equity	324.38M	511.42M	1.16B	1.14B	1.01B	753.65M
Cash Flow
Free Cash Flow	624.61M	607.25M	288.87M	145.09M	525.93M	440.40M
Operating Cash Flow	726.83M	819.00M	652.70M	363.31M	673.07M	579.57M
Investing Cash Flow	-84.57M	-195.04M	-385.30M	-224.35M	-154.26M	-165.36M
Financing Cash Flow	-541.43M	-620.74M	-289.55M	-299.49M	-415.00M	-243.19M

Pepco Group BV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:PCO, the sentiment is Positive. The current price of 25.98 is above the 20-day moving average (MA) of 22.30, above the 50-day MA of 22.24, and above the 200-day MA of 18.69, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 78.02 is Negative, neither overbought nor oversold. The STOCH value of 85.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:PCO.

Pepco Group BV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCC	71 Outperform	zł14.40B	13.03	53.16%	―	7.78%	587.02%
PCO	52 Neutral	€14.86B	―	-117.89%	1.01%	0.87%	-2157.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%