Maisons du Monde (BATS-CHIXE:MDMP) - Share price, News & Analysis

Q: What is the Fair Price of MDMP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MDMP (€9.39) is trading below our estimate of [[fair value]] (€48.86)

MDMP fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

MDMP Stock Overview

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

Rewards

Trading at 80.8% below our estimate of its fair value

Earnings are forecast to grow 12.07% per year

Trading at good value vs. peer average Price-To-Earnings ratio

Trading at good value vs. industry average Price-To-Earnings ratio

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

Profit margins (4.5%) are lower than last year (7.2%)

Maisons du Monde Competitors

Dunelm Group

LSE:DNLM

UK£1.5b

ScS Group

LSE:SCS

UK£42.7m

Halfords Group

LSE:HFD

UK£286.6m

Wickes Group

LSE:WIX

UK£313.4m

Price History & Performance

Summary of all time highs, changes and price drops for Maisons du Monde
Historical stock prices
Current Share Price	€9.39
52 Week High	€20.50
52 Week Low	€9.13
Beta	1.76
1 Month Change	-10.40%
3 Month Change	n/a
1 Year Change	-48.35%
3 Year Change	-34.34%
5 Year Change	-75.13%
Change since IPO	-47.83%

Shareholder Returns

	MDMP	GB Specialty Retail	GB Market
7D	0%	-7.3%	-1.7%
1Y	-48.4%	-34.7%	-15.1%

Return vs Industry: MDMP underperformed the UK Specialty Retail industry which returned -36.3% over the past year.

Return vs Market: MDMP underperformed the UK Market which returned -16.2% over the past year.

Price Volatility

Is MDMP's price volatile compared to industry and market?
MDMP volatility
MDMP Average Weekly Movement	n/a
Specialty Retail Industry Average Movement	6.7%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.7%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: Insufficient data to determine MDMP's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine MDMP's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1996	7,192	Julie Walbaum	https://corporate.maisonsdumonde.com

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 bed linen products, carpets, candles, pillows and cushions, clocks, tableware, lamps, kitchen utensils, mirrors and frames, vases, storage units, curtains and net curtains, and bath products. It also provides furniture, such as sofas, chairs, beds, mattresses and bedframes, floor lamps, tables, and junior furniture; and tables and storage units comprising bookshelves, wardrobes, and cupboards, as well as outdoor furniture.

Maisons du Monde Fundamentals Summary

How do Maisons du Monde's earnings and revenue compare to its market cap?
MDMP fundamental statistics
Market Cap	€339.79m
Earnings (TTM)	€58.77m
Revenue (TTM)	€1.32b

5.8x

P/E Ratio

0.3x

P/S Ratio

Is MDMP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MDMP income statement (TTM)
Revenue	€1.32b
Cost of Revenue	€459.01m
Gross Profit	€860.86m
Other Expenses	€802.08m
Earnings	€58.77m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.38
Gross Margin	65.22%
Net Profit Margin	4.45%
Debt/Equity Ratio	29.4%

How did MDMP perform over the long term?

See historical performance and comparison

Dividends

6.9%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MDMP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MDMP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MDMP. This is calculated by dividing MDMP's market cap by their current preferred multiple.
What is MDMP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€339.79m

MDMP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	11.8x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does MDMP's PE Ratio compare to its peers?

MDMP PE Ratio vs Peers

The above table shows the PE ratio for MDMP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10x
DNLM Dunelm Group	8.6x	-9.3%	UK£1.5b
SCS ScS Group	21.9x	7.4%	UK£42.7m
HFD Halfords Group	3.7x	-5.5%	UK£286.6m
WIX Wickes Group	6.1x	13.6%	UK£313.4m
MDMP Maisons du Monde	5.8x	12.1%	€339.8m

Price-To-Earnings vs Peers: MDMP is good value based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (10x).

Price to Earnings Ratio vs Industry

How does MDMP's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

Price-To-Earnings vs Industry: MDMP is good value based on its Price-To-Earnings Ratio (5.8x) compared to the UK Specialty Retail industry average (6.5x)

Price to Earnings Ratio vs Fair Ratio

What is MDMP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MDMP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MDMP's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of MDMP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MDMP (€9.39) is trading below our estimate of fair value (€48.86)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Maisons du Monde forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

12.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDMP's forecast earnings growth (12.1% per year) is above the savings rate (0.9%).

Earnings vs Market: MDMP's earnings (12.1% per year) are forecast to grow faster than the UK market (8.9% per year).

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

Revenue vs Market: MDMP's revenue (5.3% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: MDMP's revenue (5.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MDMP's Return on Equity is forecast to be low in 3 years time (7.1%).

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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

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

2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MDMP has high quality earnings.

Growing Profit Margin: MDMP's current net profit margins (4.5%) are lower than last year (7.2%).

Past Earnings Growth Analysis

Earnings Trend: MDMP's earnings have grown by 2.3% per year over the past 5 years.

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

Earnings vs Industry: MDMP had negative earnings growth (-38.4%) over the past year, making it difficult to compare to the Specialty Retail industry average (32%).

Return on Equity

High ROE: MDMP's Return on Equity (9%) is considered low.

Discover strong past performing companies

Financial Health

How is Maisons du Monde's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: MDMP's short term assets (€486.8M) exceed its short term liabilities (€436.6M).

Long Term Liabilities: MDMP's short term assets (€486.8M) do not cover its long term liabilities (€754.0M).

Debt to Equity History and Analysis

Debt Level: MDMP's net debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: MDMP's debt to equity ratio has reduced from 59.3% to 29.4% over the past 5 years.

Debt Coverage: MDMP's debt is well covered by operating cash flow (103.8%).

Interest Coverage: MDMP's interest payments on its debt are well covered by EBIT (6.3x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

6.88%

Current Dividend Yield

Dividend Yield vs Market

Maisons du Monde Dividend Yield vs Market

How does Maisons du Monde dividend yield compare to the market?
Segment	Dividend Yield
Company (Maisons du Monde)	6.9%
Market Bottom 25% (GB)	2.1%
Market Top 25% (GB)	6.1%
Industry Average (Specialty Retail)	3.6%
Analyst forecast in 3 Years (Maisons du Monde)	4.5%

Notable Dividend: MDMP's dividend (6.88%) is higher than the bottom 25% of dividend payers in the UK market (2.15%).

High Dividend: MDMP's dividend (6.88%) is in the top 25% of dividend payers in the UK market (6.29%)

Stability and Growth of Payments

Stable Dividend: MDMP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MDMP's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.5%), MDMP's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.6%), MDMP's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure

CEO

Julie Walbaum (45 yo)

3.25yrs

Tenure

€1,696,428

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

Julie Walbaum's Compensation vs Maisons du Monde Earnings

How has Julie Walbaum's remuneration changed compared to Maisons du Monde's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	€59m
Mar 31 2022	n/a	n/a	€63m
Dec 31 2021	€2m	€500k	€66m
Jun 30 2021	n/a	n/a	€95m
Mar 31 2021	n/a	n/a	€78m
Dec 31 2020	€1m	€450k	€61m
Sep 30 2020	n/a	n/a	€18m
Jun 30 2020	n/a	n/a	€35m
Mar 31 2020	n/a	n/a	€47m
Dec 31 2019	€1m	€450k	€59m
Sep 30 2019	n/a	n/a	€59m
Jun 30 2019	n/a	n/a	€58m
Mar 31 2019	n/a	n/a	€59m
Dec 31 2018	€520k	€200k	€60m

Compensation vs Market: Julie's total compensation ($USD1.66M) is above average for companies of similar size in the UK market ($USD1.08M).

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

Leadership Team

Experienced Management: MDMP's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: MDMP's board of directors are not considered experienced ( 1.3 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

What is the ownership structure of MDMP?
Owner Type	Number of Shares	Ownership Percentage
Individual Insiders	200,415	0.5%
General Public	8,645,444	20.3%
Private Companies	9,202,704	21.7%
Hedge Funds	9,444,002	22.2%
Institutions	15,008,242	35.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 79% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
22.22%	Teleios Capital Partners GmbH	9,444,002	€88.7m	0.08%	14.72%
21.65%	Majorelle Investments S.À R.L.	9,202,704	€86.4m	26.94%	no data
9.87%	FMR LLC	4,193,728	€39.4m	15.74%	no data
4.24%	Washington University Investment Management Company	1,802,395	€16.9m	0%	4.63%
3.51%	The Vanguard Group, Inc.	1,491,351	€14.0m	2.21%	no data
2.57%	Norges Bank Investment Management	1,094,171	€10.3m	0%	no data
2.11%	Dimensional Fund Advisors LP	898,755	€8.4m	-3.62%	no data
1.88%	Sycomore Asset Management SA	800,000	€7.5m	-15.79%	0.21%
1.68%	Invesco Ltd.	715,762	€6.7m	0%	no data
1.63%	Ibercaja Gestión SGIIC S.A.	691,788	€6.5m	0%	0.19%
1.43%	Degroof Petercam Asset Management	606,886	€5.7m	0%	0.03%
1.25%	BlackRock, Inc.	529,237	€5.0m	3.85%	no data
1.06%	Ninety One UK Limited	450,701	€4.2m	0%	0.01%
0.54%	J.P. Morgan Asset Management, Inc.	231,209	€2.2m	-1.13%	no data
0.41%	Mercados y Gestión de Valores A.V.B SA	173,887	€1.6m	0%	1.12%
0.41%	Charles Schwab Investment Management, Inc.	173,883	€1.6m	5.41%	no data
0.4%	Pacific Life Fund Advisors LLC	169,500	€1.6m	10.28%	0.01%
0.33%	KBC Asset Management NV	142,155	€1.3m	-19.69%	no data
0.33%	Fourton Rahastoyhtiö Oy	140,000	€1.3m	0%	0.54%
0.31%	Fidelity International Ltd	130,747	€1.2m	23206.06%	no data
0.28%	Etoile Gestion	117,259	€1.1m	0%	0.06%
0.25%	American Century Investment Management Inc	107,935	€1.0m	2.45%	no data
0.24%	Swisspartners (liechtenstein) AG	100,000	€939.0k	0%	1%
0.21%	Peter Child	88,500	€831.0k	0%	no data
0.19%	BNY Mellon Asset Management	79,696	€748.3k	-2.42%	no data

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
MDM	ENXTPA (Euronext Paris)	Yes	New Ordinary Shares	FR	EUR	May 2016
ZMM	DB (Deutsche Boerse AG)	Yes	New Ordinary Shares	DE	EUR	May 2016
MDMP	BATS-CHIXE (BATS 'Chi-X Europe')	Yes	New Ordinary Shares	GB	EUR	May 2016
0RHL	LSE (London Stock Exchange)	Yes	New Ordinary Shares	GB	EUR	May 2016
MDOU.F	OTCPK (Pink Sheets LLC)	Yes	New Ordinary Shares	US	USD	May 2016

Data	Last Updated (UTC time)
Company Analysis	2022/09/30 00:00
End of Day Share Price	2022/09/15 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31