Compagnie des Alpes (ENXTPA:CDA) Revenue Growth Tests Bearish Volatility Narrative in FY 2025 H1

Compagnie des Alpes FY 2025 results in focus

Compagnie des Alpes (ENXTPA:CDA) just posted FY 2025 first half results with revenue of €849.5 million and EPS of €2.65, setting the tone for another data rich year for investors to digest. The company has seen revenue move from €761.1 million in the first half of FY 2024 to €849.5 million in the latest half, while EPS edged from €2.53 to €2.65, leaving investors to parse how these headline gains compare with softer margins and a more mixed profit picture over the past year.

See our full analysis for Compagnie des Alpes.

With the latest numbers on the table, the next step is to compare these results with the prevailing narratives around Compagnie des Alpes to see which storylines hold up and which might need a rethink.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Slip From 9.1% To 7.5%

• Net profit margin sits at 7.5% for the latest twelve months, down from 9.1% a year earlier, even though net income in that period is €107.1 million on €1.33 billion of revenue.
• What stands out for a bullish view is that this softer margin profile is paired with ongoing growth:
  • Trailing 12 month revenue has risen from €1.24 billion to €1.33 billion, while net income over that window moved from €92.4 million to €99.0 million.
  • Forecasts still call for earnings growth of about 8.17% per year and revenue growth of around 5.1% per year, which suggests bulls see the current 7.5% margin level as workable rather than structurally impaired.

Five Year Growth Meets Recent Setback

• Over the past five years, earnings have grown at about 48.1% per year, yet the most recent year shows negative earnings and a margin drop from 9.1% to 7.5%, highlighting a sharp contrast between long term growth and near term pressure.
• Critics of a bullish narrative point to this pattern as a warning sign:
  • In FY 2024 second half, revenue of €478.1 million came with net income of negative €35.3 million and basic EPS of negative €0.70, compared with positive €127.7 million net income and €2.53 EPS in the prior first half.
  • Even with FY 2025 first half net income rebounding to €134.3 million, the fact that the last full year’s earnings were negative means bears can argue that recent volatility dilutes the strength of the five year growth record.

Valuation Discounts Forecast 8.2% Growth

• The shares trade at a trailing P/E of 12.3 times, below the European Hospitality average of 16.2 times and a peer average of 20.4 times, while the current price of €23.75 also sits well under a DCF fair value estimate of about €38.00.
• Supporters of the bullish case lean heavily on this valuation gap:
  • With earnings forecast to grow around 8.17% per year and revenue around 5.1% per year, a below peer P/E multiple makes the stock look priced more like a slow grower than a company expected to keep expanding.
  • The combination of a discount to DCF fair value, lower multiples than sector peers, and an assessment of past earnings as high quality provides a numerical backbone for investors arguing that the market may be underestimating the company’s medium term potential.

Some investors will want to dig deeper into how this valuation gap lines up with Compagnie des Alpes’ growth drivers, debt load, and seasonal swings before deciding whether the current price deserves a re rating or not. 📊 Read the full Compagnie des Alpes Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Compagnie des Alpes's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Compagnie des Alpes faces slipping margins and volatile earnings that contrast with its five year growth record, raising questions about how reliable future performance might be.

If this bumpier trajectory makes you uneasy, use our stable growth stocks screener (2075 results) to quickly find companies with steadier revenue and earnings histories that could offer more predictable compounding.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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