ENXTPA:SMCP

Stock Analysis Report

Executive Summary

SMCP S.A. operates as an apparel and accessories retail company in France and internationally.


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SMCP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.0%

SMCP

3.5%

FR Specialty Retail

7.1%

FR Market


1 Year Return

-75.3%

SMCP

-57.3%

FR Specialty Retail

-17.6%

FR Market

Return vs Industry: SMCP underperformed the French Specialty Retail industry which returned -57.3% over the past year.

Return vs Market: SMCP underperformed the French Market which returned -17.6% over the past year.


Shareholder returns

SMCPIndustryMarket
7 Day19.0%3.5%7.1%
30 Day-38.7%-34.2%-19.9%
90 Day-58.9%-46.2%-25.9%
1 Year-75.3%-75.3%-57.0%-57.3%-14.8%-17.6%
3 Yearn/a-58.4%-59.4%0.04%-9.2%
5 Yearn/a-43.4%-45.2%9.6%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMCP (€3.88) is trading below our estimate of fair value (€7.06)

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


Price To Earnings Ratio

PE vs Industry: SMCP is good value based on its PE Ratio (5.5x) compared to the Specialty Retail industry average (5.8x).

PE vs Market: SMCP is good value based on its PE Ratio (5.5x) compared to the French market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: SMCP is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: SMCP is good value based on its PB Ratio (0.2x) compared to the FR Specialty Retail industry average (0.5x).


Next Steps

Future Growth

How is SMCP forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMCP's forecast earnings growth (24.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: SMCP's earnings (24.4% per year) are forecast to grow faster than the French market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SMCP's revenue (5.4% per year) is forecast to grow faster than the French market (3.7% per year).

High Growth Revenue: SMCP's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMCP's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has SMCP performed over the past 5 years?

32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMCP has a large one-off loss of €27.2M impacting its December 31 2019 financial results.

Growing Profit Margin: SMCP's current net profit margins (3.9%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: SMCP has become profitable over the past 5 years, growing earnings by 32.9% per year.

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

Earnings vs Industry: SMCP had negative earnings growth (-13%) over the past year, making it difficult to compare to the Specialty Retail industry average (-22.9%).


Return on Equity

High ROE: SMCP's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is SMCP's financial position?


Financial Position Analysis

Short Term Liabilities: SMCP's short term assets (€422.1M) exceed its short term liabilities (€329.6M).

Long Term Liabilities: SMCP's short term assets (€422.1M) do not cover its long term liabilities (€1.0B).


Debt to Equity History and Analysis

Debt Level: SMCP's debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: SMCP's debt to equity ratio has reduced from 191.6% to 37% over the past 5 years.

Debt Coverage: SMCP's debt is well covered by operating cash flow (45.8%).

Interest Coverage: SMCP's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: SMCP's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SMCP'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?

0.9yrs

Average management tenure


CEO

Daniel Lalonde (56yo)

no data

Tenure

€1,568,048

Compensation

Mr. Daniel A. Lalonde serves as the Chief Executive Officer of SMCP S.A.S and he is founder of SMCP S.A.S. He served as its Director since October 5, 2017. Mr. Lalonde had been an Independent Non-Executive ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD1.74M) is above average for companies of similar size in the French market ($USD600.96K).

Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Lalonde
Founderno data€1.57m0.16% 462.6k
Evelyne Chétrite
Founder2.42yrs€1.50mno data
Judith Milgrom
Founder2.42yrs€1.63mno data
Ylane Chétrite
Founderno data€973.05kno data
Philippe Gautier
CFO & Operations Directorno datano datano data
Célia d'Everlange
Head of Investor Relationsno datano datano data
Nathalie Malavoy
Human Resources & Sustainability Director0.42yrno datano data
Chenran Qiu
Deputy CEO & Director2.42yrsno datano data
Jean-Baptiste Dacquin
Chief Executive Officer of Claudie Pierlot0.92yrno datano data
Paul Griffin
Chief Executive Officer of North America1.17yrsno datano data

0.9yrs

Average Tenure

49yo

Average Age

Experienced Management: SMCP's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Lalonde
Founderno data€1.57m0.16% 462.6k
Evelyne Chétrite
Founder2.42yrs€1.50mno data
Judith Milgrom
Founder2.42yrs€1.63mno data
Ylane Chétrite
Founderno data€973.05kno data
Chenran Qiu
Deputy CEO & Director2.42yrsno datano data
Orla Noonan
Independent Director2.42yrs€39.89kno data
Patrizio di Marco
Independent Director2.42yrs€35.10kno data
Yafu Qiu
Chairman of the Board2.42yrsno datano data
Weiying Sun
Director2.42yrsno datano data
Ilan Chétrite
Board Observerno data€1.02mno data

2.4yrs

Average Tenure

55yo

Average Age

Experienced Board: SMCP's board of directors are not considered experienced ( 2.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SMCP S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SMCP S.A.
  • Ticker: SMCP
  • Exchange: ENXTPA
  • Founded: 2016
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: €289.390m
  • Shares outstanding: 74.59m
  • Website: https://www.smcp.com

Number of Employees


Location

  • SMCP S.A.
  • 49 rue Etienne Marcel
  • Paris
  • Ile-de-France
  • 75001
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMCPENXTPA (Euronext Paris)YesNew Ordinary SharesFREUROct 2017
SFCDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEUROct 2017
0RVALSE (London Stock Exchange)YesNew Ordinary SharesGBEUROct 2017
SMCPPBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBEUROct 2017

Biography

SMCP S.A. operates as an apparel and accessories retail company in France and internationally. The company designs, markets, and sells women’s wear, men’s wear, and accessories. It sells products through a network of points of sale and Websites under three brands, including Sandro, Maje, and Claudie Pierlot. As of December 31, 2018, the company operated 1,172 points of sales. The company was incorporated in 2016 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 Analysis2020/03/30 00:43
End of Day Share Price2020/03/27 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.