ENXTPA:MDM

Stock Analysis Report

Maisons du Monde

Executive Summary

Maisons du Monde S.A., through its subsidiaries, creates and distributes home decoration items and furniture in France and internationally.

Rewards

PE ratio (10x) is below the French market (18.7x)

Earnings are forecast to grow 12.32% per year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Maisons du Monde's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.3%

MDM

-1.9%

FR Specialty Retail

-0.4%

FR Market


1 Year Return

-46.1%

MDM

-36.1%

FR Specialty Retail

16.2%

FR Market

Return vs Industry: MDM underperformed the French Specialty Retail industry which returned -34.2% over the past year.

Return vs Market: MDM underperformed the French Market which returned 17.1% over the past year.


Shareholder returns

MDMIndustryMarket
7 Day1.3%-1.9%-0.4%
30 Day10.0%-3.5%0.5%
90 Day0.2%-11.5%3.9%
1 Year-44.9%-46.1%-35.6%-36.1%20.2%16.2%
3 Year-48.6%-50.9%-26.3%-28.3%43.4%29.8%
5 Yearn/a2.2%-1.6%54.5%32.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Maisons du Monde undervalued compared to its fair value and its price relative to the market?

9.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MDM (€12.92) is trading above our estimate of fair value (€10.16)

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


Price To Earnings Ratio

PE vs Industry: MDM is good value based on its PE Ratio (10x) compared to the Specialty Retail industry average (11.1x).

PE vs Market: MDM is good value based on its PE Ratio (10x) compared to the French market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: MDM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MDM is overvalued based on its PB Ratio (1x) compared to the FR Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Maisons du Monde forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDM's forecast earnings growth (12.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: MDM's earnings (12.3% per year) are forecast to grow slower than the French market (13% per year).

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

Revenue vs Market: MDM's revenue (9.4% per year) is forecast to grow faster than the French market (4.6% per year).

High Growth Revenue: MDM's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDM's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has Maisons du Monde performed over the past 5 years?

62.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDM has high quality earnings.

Growing Profit Margin: MDM's current net profit margins (4.8%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: MDM has become profitable over the past 5 years, growing earnings by 62.9% per year.

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

Earnings vs Industry: MDM had negative earnings growth (-10%) over the past year, making it difficult to compare to the Specialty Retail industry average (-10%).


Return on Equity

High ROE: MDM's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Maisons du Monde's financial position?


Financial Position Analysis

Short Term Liabilities: MDM's short term assets (€379.3M) exceed its short term liabilities (€373.7M).

Long Term Liabilities: MDM's short term assets (€379.3M) do not cover its long term liabilities (€876.2M).


Debt to Equity History and Analysis

Debt Level: MDM's debt to equity ratio (39.8%) is considered satisfactory.

Reducing Debt: MDM's debt to equity ratio has reduced from 1934.4% to 39.8% over the past 5 years.

Debt Coverage: MDM's debt is well covered by operating cash flow (57.2%).

Interest Coverage: MDM's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet

Inventory Level: MDM has a high level of physical assets or inventory.

Debt Coverage by Assets: MDM's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Maisons du Monde's current dividend yield, its reliability and sustainability?

3.70%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.5%markettop25%4.5%industryaverage3.2%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: MDM's dividend (3.64%) is higher than the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: MDM's dividend (3.64%) is low compared to the top 25% of dividend payers in the French market (4.5%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MDM has been paying a dividend for less than 10 years.

Growing Dividend: MDM's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), MDM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MDM's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Julie Walbaum (42yo)

1.6yrs

Tenure

€519,542

Compensation

Ms. Julie Walbaum is the Chief Executive Officer of Maisons du Monde S.A. since July 1, 2018 and also serves as its Director since 2019. She served as Managing Director of E-Commerce & Customer Marketing a ...


CEO Compensation Analysis

Compensation vs Market: Julie's total compensation ($USD560.88K) is about average for companies of similar size in the French market ($USD676.97K).

Compensation vs Earnings: Insufficient data to compare Julie's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Julie Walbaum
CEO & Director1.6yrs€519.54k0.0065% 38.0k
Eric Bosmans
Chief Financial Officer0.7yrsno datano data
Yohann Catherine
Operations Director0yrsno datano data
Laurent Sfaxi
Head of Investor Relations0yrsno datano data
Marie-Laure Cassé
Digital & Marketing Director0yrsno datano data
Sophie Mouhieddine
Director of Human Resources0.08yrsno datano data
Catherine Filoche
Head of Franchising & BtoB Sales and Company Secretary0yrsno datano data
Julien Vigouroux
Logistics Director0yrsno datano data

0.7yrs

Average Tenure

Experienced Management: MDM's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Julie Walbaum
CEO & Director1.6yrs€519.54k0.0065% 38.0k
Ian Cheshire
Chairman of the Board3.1yrs€105.00k0.0022% 12.9k
Gilles Petit
Director3.8yrs€596.89k0.99% 5.8m
Marie-Christine Levet
Independent Director3.8yrs€55.00k0.00022% 1.3k
Sophie Guieysse
Independent Director3.8yrs€55.00k0.0022% 12.9k
Nicolas Woussen
Independent Director3.8yrs€70.00k0.00022% 1.3k
Marie Schott
Independent Director2.8yrs€55.00k0.00022% 1.3k
Mustapha Oulkhouir
Director1.7yrsno datano data

3.5yrs

Average Tenure

49yo

Average Age

Experienced Board: MDM's board of directors are considered experienced (3.5 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

Maisons du Monde S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Maisons du Monde S.A.
  • Ticker: MDM
  • Exchange: ENXTPA
  • Founded: 1996
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: €583.675m
  • Shares outstanding: 45.18m
  • Website: https://corporate.maisonsdumonde.com

Number of Employees


Location

  • Maisons du Monde S.A.
  • Le Portereau
  • Route du Ports aux Meules
  • Vertou
  • Pays de la Loire
  • 44120
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDMENXTPA (Euronext Paris)YesNew Ordinary SharesFREURMay 2016
ZMMDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURMay 2016
MDMPBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBEURMay 2016
0RHLLSE (London Stock Exchange)YesNew Ordinary SharesGBEURMay 2016
MDOU.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDMay 2016

Biography

Maisons du Monde S.A., through its subsidiaries, creates and distributes home decoration items and furniture in France and internationally. The company’s decorative products include bedding, rugs and mats, candles, pillows and cushions, clocks, tableware, lamps, kitchenware, mirrors and frames, vases, storage articles, window treatments, and bath products, as well as household textiles; and baby crib mobiles, lamps, storage containers, and wall art for children. It also provides furniture, such as sofas, chairs, beds, mattresses and bedframes, floor lamps, tables, outdoor furniture, and junior furniture; and tables and storage units comprising bookshelves, wardrobes, and cupboards. In addition, the company offers warehouse logistics and order preparation, and customer delivery services, as well as container transport services between harbor and warehouses. As of June 30, 2019, it operated 343 stores in 10 countries; and an e-commerce platform. The company also offers its products through four catalogues covering general, outdoor furniture, junior, and lighting. It provides its products under the Maisons du Monde brand. The company was formerly known as Magnolia (BC) SAS. Maisons du Monde S.A. founded in 1996 and is headquartered in Vertou, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:40
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.