DB:AZ6

Stock Analysis Report

Executive Summary

EuropaCorp produces and distributes films worldwide.


Snowflake Analysis

Slightly overvalued with limited growth.

Share Price & News

How has EuropaCorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AZ6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.0%

AZ6

20.6%

DE Entertainment

7.2%

DE Market


1 Year Return

-46.1%

AZ6

-8.9%

DE Entertainment

-17.5%

DE Market

Return vs Industry: AZ6 underperformed the German Entertainment industry which returned -8.6% over the past year.

Return vs Market: AZ6 underperformed the German Market which returned -14.1% over the past year.


Shareholder returns

AZ6IndustryMarket
7 Day2.0%20.6%7.2%
30 Day-18.7%-22.1%-22.3%
90 Day-23.4%-27.5%-26.1%
1 Year-46.1%-46.1%-7.7%-8.9%-14.9%-17.5%
3 Year-86.1%-86.1%-2.8%-7.5%-18.7%-25.7%
5 Year-88.1%-88.1%40.5%29.3%-17.8%-29.1%

Price Volatility Vs. Market

How volatile is EuropaCorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is EuropaCorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AZ6 (€0.52) is trading below our estimate of fair value (€18.15)

Significantly Below Fair Value: AZ6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AZ6 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: AZ6 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AZ6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AZ6 has negative assets, so we can't compare its PB Ratio to the DE Entertainment industry average.


Next Steps

Future Growth

How is EuropaCorp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

109.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZ6 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AZ6 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AZ6 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AZ6's revenue (35.8% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: AZ6's revenue (35.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AZ6's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EuropaCorp performed over the past 5 years?

-36.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZ6 is currently unprofitable.

Growing Profit Margin: AZ6 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AZ6 is unprofitable, and losses have increased over the past 5 years at a rate of -36.7% per year.

Accelerating Growth: Unable to compare AZ6's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AZ6 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (-50.4%).


Return on Equity

High ROE: AZ6's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is EuropaCorp's financial position?


Financial Position Analysis

Short Term Liabilities: AZ6 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AZ6 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AZ6 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AZ6's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: AZ6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: AZ6 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AZ6 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AZ6 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30.1% per year.


Next Steps

Dividend

What is EuropaCorp's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AZ6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AZ6's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AZ6's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AZ6's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AZ6 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AZ6's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average board tenure


CEO

Luc Besson (59yo)

no data

Tenure

€5,625,448

Compensation

Mr. Luc Besson serves as President and Chief Executive Officer of EuropaCorp. He co-founded EuropaCorp in 2000 and has been its Chairman since September 12, 2012. Director. Mr. Besson serves as a director ...


CEO Compensation Analysis

Compensation vs Market: Luc's total compensation ($USD6.24M) is above average for companies of similar size in the German market ($USD429.96K).

Compensation vs Earnings: Luc's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Luc Besson
Co-Founderno data€5.63m31.63% 7.2m
Charles Milhaud
Vice Chairman of the Board7.5yrs€33.49kno data
Didier Kunstlinger
Director7.5yrs€23.02kno data
Patrice Gassenbach
Director7.5yrs€33.49kno data
Rhyzlène Nusse
Director5.5yrs€24.58kno data
Virginie Besson-Silla
Directorno data€308.01k0.069% 15.9k
Coralie Fontenay
Directorno data€20.47kno data
Lisa Leboff
Directorno data€20.93kno data

7.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: AZ6's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

EuropaCorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EuropaCorp
  • Ticker: AZ6
  • Exchange: DB
  • Founded: 1999
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: €22.913m
  • Shares outstanding: 40.92m
  • Website: https://www.europacorp.com

Number of Employees


Location

  • EuropaCorp
  • 20 Rue Ampère
  • Saint-Denis
  • Ile-de-France
  • 93200
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECPENXTPA (Euronext Paris)YesCommon SharesFREURJul 2007
AZ6DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2007
0IB7LSE (London Stock Exchange)YesCommon SharesGBEURJul 2007
ECPPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 2007

Biography

EuropaCorp produces and distributes films worldwide. The company produces cinematographic works and TV dramas; distributes films in theaters, as well as on-demand and video-format films; and operates theaters. It also sells international TV rights and licenses; produces and publishes film soundtracks; and produces television movies and episodic television series for platforms. EuropaCorp was founded in 1999 and is based in Saint-Denis, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 22:11
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.