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LOCA

Solocal GroupENXTPA:LOCAL Stock Report

Market Cap

€219.1m

7D

11.4%

1Y

-40.2%

Updated

24 Sep, 2021

Data

Company Financials +
LOCAL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health0/6
Dividends0/6

LOCAL Overview

Solocal Group S.A. provides digital services in France and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Solocal Group
Historical stock prices
Current Share Price€1.80
52 Week High€1.45
52 Week Low€3.68
Beta1.86
1 Month Change8.55%
3 Month Change-6.55%
1 Year Change-40.15%
3 Year Change-96.41%
5 Year Change-97.65%
Change since IPO-99.98%

Recent News & Updates

Shareholder Returns

LOCALFR Interactive Media and ServicesFR Market
7D11.4%-2.0%0.7%
1Y-40.2%11.7%40.1%

Return vs Industry: LOCAL underperformed the French Interactive Media and Services industry which returned 11.7% over the past year.

Return vs Market: LOCAL underperformed the French Market which returned 40.1% over the past year.

Price Volatility

Is LOCAL's price volatile compared to industry and market?
LOCAL volatility
LOCAL Beta1.86
Industry Beta0.52
Market Beta1

Stable Share Price: LOCAL is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LOCAL's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

FoundedEmployeesCEOWebsite
18962,813Herve Milcenthttps://www.solocal.com

Solocal Group S.A. provides digital services in France and internationally. Its services include connect that allows VSEs and SMEs to manage their digital presence on PagesJaunes and various Web through mobile application, or a web interface, as well as manages interactions between professionals and their customers; and booster that allows companies to increase their digital visibility in the Web. The company was formerly known as PagesJaunes Groupe and changed its name to SoLocal Group S.A. in June 2013.

Solocal Group Fundamentals Summary

How do Solocal Group's earnings and revenue compare to its market cap?
LOCAL fundamental statistics
Market Cap€219.09m
Earnings (TTM)€42.84m
Revenue (TTM)€422.11m

5.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOCAL income statement (TTM)
Revenue€422.11m
Cost of Revenue€202.45m
Gross Profit€219.66m
Expenses€176.82m
Earnings€42.84m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.33
Gross Margin52.04%
Net Profit Margin10.15%
Debt/Equity Ratio-92.9%

How did LOCAL perform over the long term?

See historical performance and comparison

Valuation

Is Solocal Group 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: LOCAL (€1.8) is trading below our estimate of fair value (€10.24)

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


Price To Earnings Ratio

PE vs Industry: LOCAL is good value based on its PE Ratio (5.4x) compared to the European Interactive Media and Services industry average (37.7x).

PE vs Market: LOCAL is good value based on its PE Ratio (5.4x) compared to the French market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: LOCAL is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: LOCAL has negative assets, so we can't compare its PB Ratio to the FR Interactive Media and Services industry average.


Future Growth

How is Solocal Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOCAL's forecast earnings growth (19.8% per year) is above the savings rate (0.4%).

Earnings vs Market: LOCAL's earnings (19.8% per year) are forecast to grow faster than the French market (11.7% per year).

High Growth Earnings: LOCAL's earnings are forecast to grow, but not significantly.

Revenue vs Market: LOCAL's revenue (6.7% per year) is forecast to grow faster than the French market (6.3% per year).

High Growth Revenue: LOCAL's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Solocal Group performed over the past 5 years?

-33.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOCAL has a large one-off gain of €56.9M impacting its June 30 2021 financial results.

Growing Profit Margin: LOCAL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LOCAL's earnings have declined by 33% per year over the past 5 years.

Accelerating Growth: LOCAL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LOCAL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (25.9%).


Return on Equity

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


Financial Health

How is Solocal Group's financial position?


Financial Position Analysis

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

Long Term Liabilities: LOCAL 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: LOCAL has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: LOCAL's debt is not well covered by operating cash flow (2.2%).

Interest Coverage: LOCAL's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet


Dividend

What is Solocal Group current dividend yield, its reliability and sustainability?

1.11%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: LOCAL is not paying a notable dividend for the French market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Herve Milcent (58 yo)

0.42

Tenure

Mr. Herve Milcent served as Chief Executive Officer of FSM, Germany Group and Italy Group at Teleperformance SE until March 2021. Mr. Milcent serves as Chief Executive Officer of Lyreco SA. Mr. Milcent ser...


Leadership Team

Experienced Management: LOCAL's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: LOCAL's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 754.9%.


Top Shareholders

Company Information

Solocal Group S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Solocal Group S.A.
  • Ticker: LOCAL
  • Exchange: ENXTPA
  • Founded: 1896
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: €219.090m
  • Shares outstanding: 129.56m
  • Website: https://www.solocal.com

Number of Employees


Location

  • Solocal Group S.A.
  • 204 rond-point du Pont de SEvres
  • Cedex
  • Boulogne-Billancourt
  • Ile-de-France
  • 92100
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 17:51
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.