Lagardere (ENXTPA:MMB) - Share price, News & Analysis

MMB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	1/6
Dividends	2/6

MMB Stock Overview

Lagardere SA engages in content publishing, production, broadcasting, and distribution businesses worldwide.

Rewards

Trading at 41.3% below our estimate of its fair value

Earnings are forecast to grow 78.55% per year

Risk Analysis

Has a high level of debt

Dividend of 2% is not well covered by earnings

Shareholders have been diluted in the past year

Lagardere Competitors

S&P Global

NYSE:SPGI

US$114.5b

RELX

LSE:REL

UK£44.0b

Thomson Reuters

TSX:TRI

CA$59.7b

Compass Group

LSE:CPG

UK£32.3b

Price History & Performance

Summary of all time highs, changes and price drops for Lagardere
Historical stock prices
Current Share Price	€24.96
52 Week High	€25.54
52 Week Low	€18.60
Beta	1.03
1 Month Change	-1.89%
3 Month Change	3.31%
1 Year Change	24.43%
3 Year Change	12.03%
5 Year Change	-10.09%
Change since IPO	144.15%

Shareholder Returns

	MMB	FR Media	FR Market
7D	0%	1.0%	1.6%
1Y	24.4%	-30.9%	-4.2%

Return vs Industry: MMB exceeded the French Media industry which returned -30.9% over the past year.

Return vs Market: MMB exceeded the French Market which returned -4.2% over the past year.

Price Volatility

Is MMB's price volatile compared to industry and market?
MMB volatility
MMB Average Weekly Movement	1.6%
Media Industry Average Movement	5.4%
Market Average Movement	6.2%
10% most volatile stocks in FR Market	10.5%
10% least volatile stocks in FR Market	3.6%

Stable Share Price: MMB is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: MMB's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1826	27,359	Arnaud Lagardere	https://www.lagardere.com

Lagardere SA engages in content publishing, production, broadcasting, and distribution businesses worldwide. It operates through two divisions: Lagardère Publishing, and Lagardère Travel Retail. The Lagardère Publishing division includes book publishing and e-publishing businesses, which cover the areas of education, general literature, illustrated books, partworks, dictionaries, youth works, mobile games, board games, and distribution in English, French, and Spanish languages.

Lagardere Fundamentals Summary

How do Lagardere's earnings and revenue compare to its market cap?
MMB fundamental statistics
Market Cap	€3.49b
Earnings (TTM)	-€103.00m
Revenue (TTM)	€5.17b

0.7x

P/S Ratio

-33.9x

P/E Ratio

Is MMB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MMB income statement (TTM)
Revenue	€5.17b
Cost of Revenue	€2.78b
Gross Profit	€2.39b
Other Expenses	€2.49b
Earnings	-€103.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)	-0.74
Gross Margin	46.16%
Net Profit Margin	-1.99%
Debt/Equity Ratio	263.3%

How did MMB perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

-65%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

41.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MMB (€24.96) is trading below our estimate of fair value (€42.51)

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

Price To Earnings Ratio

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

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

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: MMB is overvalued based on its PB Ratio (4.3x) compared to the FR Media industry average (1.7x).

Future Growth

How is Lagardere forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

78.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.3%).

Earnings vs Market: MMB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MMB's is expected to become profitable in the next 3 years.

Revenue vs Market: MMB's revenue (12.5% per year) is forecast to grow faster than the French market (5.7% per year).

High Growth Revenue: MMB's revenue (12.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MMB's Return on Equity is forecast to be low in 3 years time (18.1%).

Past Performance

How has Lagardere performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-59.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MMB is currently unprofitable.

Growing Profit Margin: MMB is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: MMB is unprofitable, and losses have increased over the past 5 years at a rate of 59.5% per year.

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

Earnings vs Industry: MMB is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (69.4%).

Return on Equity

High ROE: MMB has a negative Return on Equity (-9.37%), as it is currently unprofitable.

Financial Health

How is Lagardere's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MMB's short term assets (€3.4B) do not cover its short term liabilities (€3.7B).

Long Term Liabilities: MMB's short term assets (€3.4B) do not cover its long term liabilities (€4.1B).

Debt to Equity History and Analysis

Debt Level: MMB's net debt to equity ratio (163.5%) is considered high.

Reducing Debt: MMB's debt to equity ratio has increased from 91.9% to 263.3% over the past 5 years.

Debt Coverage: MMB's debt is well covered by operating cash flow (33%).

Interest Coverage: Insufficient data to determine if MMB's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is Lagardere current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MMB's dividend (2%) is higher than the bottom 25% of dividend payers in the French market (1.71%).

High Dividend: MMB's dividend (2%) is low compared to the top 25% of dividend payers in the French market (5.05%).

Stability and Growth of Payments

Stable Dividend: MMB's dividend payments have been volatile in the past 10 years.

Growing Dividend: MMB's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: MMB is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (10.3%), MMB's dividend payments are thoroughly covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

2.8yrs

Average management tenure

CEO

Arnaud Lagardere (60 yo)

19.33yrs

Tenure

€2,891,506

Compensation

Mr. Lagardere serves as Chairman of Lagardere SA (Formerly, Lagardere SCA) since June 30, 2021 and also serves as its Chief Executive Officer since 2003. He had been General and Managing Partner at Lagarde...

CEO Compensation Analysis

Compensation vs Market: Arnaud's total compensation ($USD3.01M) is above average for companies of similar size in the French market ($USD1.88M).

Compensation vs Earnings: Arnaud's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: MMB's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: MMB's board of directors are not considered experienced ( 0.9 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: MMB insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31