ENXTPA:NRG

Stock Analysis Report

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Executive Summary

NRJ Group SA, a private media company, operates as a publisher, producer, and broadcaster.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NRG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

NRG

6.2%

FR Media

5.9%

FR Market


1 Year Return

-21.3%

NRG

-38.1%

FR Media

-8.3%

FR Market

Return vs Industry: NRG exceeded the French Media industry which returned -38.1% over the past year.

Return vs Market: NRG underperformed the French Market which returned -8.3% over the past year.


Shareholder returns

NRGIndustryMarket
7 Day5.5%6.2%5.9%
30 Day2.4%-6.1%2.6%
90 Day-7.2%-21.7%-9.6%
1 Year-19.2%-21.3%-36.2%-38.1%-6.6%-8.3%
3 Year-49.8%-52.0%-48.5%-53.5%1.4%-6.9%
5 Year-27.5%-30.7%-48.7%-56.0%19.9%4.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NRG (€5.18) is trading above our estimate of fair value (€2.45)

Significantly Below Fair Value: NRG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NRG is poor value based on its PE Ratio (18.4x) compared to the Media industry average (8.6x).

PE vs Market: NRG is poor value based on its PE Ratio (18.4x) compared to the French market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: NRG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NRG is good value based on its PB Ratio (0.7x) compared to the FR Media industry average (0.9x).


Next Steps

Future Growth

How is NRJ Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-46.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRG's earnings are forecast to decline over the next 3 years (-46.5% per year).

Earnings vs Market: NRG's earnings are forecast to decline over the next 3 years (-46.5% per year).

High Growth Earnings: NRG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NRG's revenue is expected to decline over the next 3 years (-10.4% per year).

High Growth Revenue: NRG's revenue is forecast to decline over the next 3 years (-10.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NRG's Return on Equity is forecast to be low in 3 years time (1.9%).


Next Steps

Past Performance

How has NRJ Group performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRG has high quality earnings.

Growing Profit Margin: NRG's current net profit margins (5.3%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: NRG's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: NRG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NRG had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Media industry average (-1%).


Return on Equity

High ROE: NRG's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is NRJ Group's financial position?


Financial Position Analysis

Short Term Liabilities: NRG's short term assets (€418.5M) exceed its short term liabilities (€171.9M).

Long Term Liabilities: NRG's short term assets (€418.5M) exceed its long term liabilities (€63.6M).


Debt to Equity History and Analysis

Debt Level: NRG's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: NRG's debt to equity ratio has reduced from 2.9% to 2.6% over the past 5 years.

Debt Coverage: NRG's debt is well covered by operating cash flow (347.3%).

Interest Coverage: NRG's interest payments on its debt are well covered by EBIT (60.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NRG's dividend (3.28%) is higher than the bottom 25% of dividend payers in the French market (1.7%).

High Dividend: NRG's dividend (3.28%) is low compared to the top 25% of dividend payers in the French market (5.08%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.5%), NRG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NRG's dividends in 3 years are not forecast to be well covered by earnings (113.8% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Jean-Paul Baudecroux (73yo)

12yrs

Tenure

€598,351

Compensation

Mr. Jean-Paul Baudecroux Founded NRJ and has been its Chief Executive Officer since May 2008. Mr. Baudecroux has been the Chairman of the Board of NRJ since June 27, 2008 and has been its Director since Ja ...


CEO Compensation Analysis

Compensation vs Market: Jean-Paul's total compensation ($USD0.00) is below average for companies of similar size in the French market ($USD568.11K).

Compensation vs Earnings: Jean-Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Paul Baudecroux
Founder12yrs€598.35k70.26% 281.7m
Maryam Bremond
Vice Chairman of the Board & MD of General Managementno data€402.90k0.15% 595.4k
Philippe Boindrieux
Deputy Managing Director of Finance1.58yrs€392.90kno data
Hervé Pavard
Managing Director of the Technical Division0.92yrno datano data
Morgan Serrano
Managing Director of The Group NRJ Music Media & Related Websitesno datano datano data

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: NRG's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jean-Paul Baudecroux
Founder12yrs€598.35k70.26% 281.7m
Maryam Bremond
Vice Chairman of the Board & MD of General Managementno data€402.90k0.15% 595.4k
Antoine Giscard d'Estaing
Independent Director16.17yrs€20.30k0.0018% 7.3k
Jérôme Gallot
Independent Director4yrs€25.50k0.0012% 4.7k
Vibeke Rostorp
Director11.92yrs€5.60kno data
Muriel Sztajman
Director10yrsno datano data
Paul Baudecroux Rostorp
Director2yrsno datano data
Mélanie Doire D'Auzac
Representative Director1.58yrsno datano data

10.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: NRG's board of directors are seasoned and experienced ( 10 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

NRJ Group SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NRJ Group SA
  • Ticker: NRG
  • Exchange: ENXTPA
  • Founded: 1981
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: €400.969m
  • Shares outstanding: 77.41m
  • Website: https://www.nrjgroup.fr

Number of Employees


Location

  • NRJ Group SA
  • 22 Rue Boileau
  • Cedex 16
  • Paris
  • Ile-de-France
  • 75203
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRGENXTPA (Euronext Paris)YesOrdinary SharesFREURJun 2000
0IXLLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2000
NRGPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2000

Biography

NRJ Group SA, a private media company, operates as a publisher, producer, and broadcaster. It operates 4 radio stations under the NRJ, CHERIE, NOSTALGIE, and RIRE & CHANSONS brands; 8 Websites; 240 digital radios; and 9 mobile and voice applications, as well as a replay TV. The company also operates two national channels, which include NRJ 12 and CHERIE 25; and NRJ Hits, a music channel for cable satellite. In addition, it engages in advertising activities; marketing activities; operates musical shows under the NRJ Music label; and computer, audio and audio visual, trademark licensing, and real estate activities. It has operations in France, Germany, Austria, Belgium, Switzerland, Sweden, Norway, Finland, and internationally. NRJ Group SA was founded in 1981 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 21:10
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.