Major Estimate Revision • May 26
Consensus revenue estimates fall by 22% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from د.ت124.0m to د.ت97.1m. EPS estimate fell from د.ت1.42 to د.ت0.78 per share. Net income forecast to shrink 22% next year vs 36% growth forecast for Leisure industry in Tunisia . Consensus price target down from د.ت15.50 to د.ت13.30. Share price rose 3.5% to د.ت11.70 over the past week. New Risk • May 25
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 5.9% per year for the foreseeable future. Minor Risks High level of debt (69% net debt to equity). Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (د.ت113.9m market cap, or US$39.5m). Price Target Changed • May 20
Price target decreased by 7.7% to د.ت15.50 Down from د.ت16.80, the current price target is provided by 1 analyst. New target price is 37% above last closing price of د.ت11.29. Stock is down 15% over the past year. The company is forecast to post earnings per share of د.ت1.23 for next year compared to د.ت1.12 last year. Announcement • Mar 18
Euro-Cycles S.A, Annual General Meeting, Jun 18, 2026 Euro-Cycles S.A, Annual General Meeting, Jun 18, 2026, at 10:00 W. Central Africa Standard Time. Location: la zone industrielle kalaa kebira, sousse Tunisia Price Target Changed • Oct 22
Price target increased by 7.0% to د.ت16.80 Up from د.ت15.70, the current price target is provided by 1 analyst. New target price is 35% above last closing price of د.ت12.41. Stock is down 1.7% over the past year. The company is forecast to post earnings per share of د.ت1.36 for next year compared to د.ت1.12 last year. New Risk • Sep 23
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 4.6% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks High level of debt (69% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (د.ت128.4m market cap, or US$44.4m). New Risk • Sep 21
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 69% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (69% net debt to equity). Market cap is less than US$100m (د.ت128.1m market cap, or US$44.2m). Upcoming Dividend • Aug 08
Upcoming dividend of د.ت0.60 per share Eligible shareholders must have bought the stock before 15 August 2025. Payment date: 19 August 2025. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Tunisian dividend payers (6.7%). In line with average of industry peers (2.3%). Announcement • Mar 24
Euro-Cycles S.A, Annual General Meeting, Jun 18, 2025 Euro-Cycles S.A, Annual General Meeting, Jun 18, 2025, at 10:00 W. Central Africa Standard Time. Location: zone industrielle kalaa kebira, sousse Tunisia Major Estimate Revision • Sep 10
Consensus EPS estimates increase by 19% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from د.ت0.70 to د.ت0.83. Revenue forecast steady at د.ت120.0m. Net income forecast to grow 31% next year vs 21% growth forecast for Leisure industry in Tunisia. Consensus price target up from د.ت15.90 to د.ت16.60. Share price was steady at د.ت13.39 over the past week. New Risk • Sep 09
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risk Market cap is less than US$100m (د.ت131.2m market cap, or US$43.1m). Reported Earnings • Sep 09
First half 2024 earnings released: EPS: د.ت0.46 (vs د.ت0.18 in 1H 2023) First half 2024 results: EPS: د.ت0.46 (up from د.ت0.18 in 1H 2023). Revenue: د.ت54.3m (up 10% from 1H 2023). Net income: د.ت4.48m (up 150% from 1H 2023). Profit margin: 8.3% (up from 3.6% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Global Leisure industry. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Aug 29
Upcoming dividend of د.ت0.30 per share Eligible shareholders must have bought the stock before 05 September 2024. Payment date: 09 September 2024. Payout ratio is a comfortable 59% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Tunisian dividend payers (7.8%). In line with average of industry peers (2.4%). New Risk • Jun 06
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Dividend is not well covered by earnings (142% payout ratio). Profit margins are more than 30% lower than last year (4.5% net profit margin). Market cap is less than US$100m (د.ت114.2m market cap, or US$36.9m). Major Estimate Revision • May 28
Consensus EPS estimates fall by 40% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from د.ت131.0m to د.ت119.0m. EPS estimate also fell from د.ت1.16 per share to د.ت0.70 per share. Net income forecast to grow 39% next year vs 20% growth forecast for Leisure industry in Tunisia. Consensus price target down from د.ت19.10 to د.ت15.90. Share price rose 2.1% to د.ت11.43 over the past week. Reported Earnings • May 19
Full year 2023 earnings released Full year 2023 results: Revenue: د.ت113.2m (down 30% from FY 2022). Net income: د.ت4.96m (down 70% from FY 2022). Profit margin: 4.4% (down from 10% in FY 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Global Leisure industry. Price Target Changed • May 17
Price target increased by 7.9% to د.ت19.10 Up from د.ت17.70, the current price target is provided by 1 analyst. New target price is 70% above last closing price of د.ت11.23. Stock is down 33% over the past year. The company is forecast to post earnings per share of د.ت0.65 for next year compared to د.ت1.70 last year. New Risk • Mar 18
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.9x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 110% Paying a dividend despite having no free cash flows. Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Share price has been volatile over the past 3 months (4.5% average weekly change). Profit margins are more than 30% lower than last year (7.2% net profit margin). Market cap is less than US$100m (د.ت111.7m market cap, or US$36.1m). Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to د.ت15.39, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 14x in the Leisure industry globally. Total loss to shareholders of 21% over the past three years. Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to د.ت13.85, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 14x in the Leisure industry globally. Total loss to shareholders of 25% over the past three years. New Risk • Oct 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Tunisian stocks, typically moving 3.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.9x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 110% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (3.9% average weekly change). Profit margins are more than 30% lower than last year (7.2% net profit margin). Market cap is less than US$100m (د.ت116.3m market cap, or US$36.9m). New Risk • Sep 19
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.9x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.9x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 110% Paying a dividend despite having no free cash flows. Minor Risks Profit margins are more than 30% lower than last year (7.2% net profit margin). Market cap is less than US$100m (د.ت134.3m market cap, or US$42.8m). Price Target Changed • Sep 05
Price target decreased by 21% to د.ت18.30 Down from د.ت23.20, the current price target is provided by 1 analyst. New target price is 38% above last closing price of د.ت13.30. Stock is down 59% over the past year. The company is forecast to post earnings per share of د.ت0.56 for next year compared to د.ت1.70 last year. Upcoming Dividend • Jul 13
Upcoming dividend of د.ت1.00 per share at 5.8% yield Eligible shareholders must have bought the stock before 20 July 2023. Payment date: 26 July 2023. Payout ratio is a comfortable 59% but the company is not cash flow positive. Trailing yield: 5.8%. Lower than top quartile of Tunisian dividend payers (8.3%). Higher than average of industry peers (2.0%). Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to د.ت19.24, the stock trades at a trailing P/E ratio of 11.3x. Average forward P/E is 15x in the Leisure industry globally. Total returns to shareholders of 27% over the past three years. Reported Earnings • May 21
Full year 2022 earnings released Full year 2022 results: Revenue: د.ت162.7m (up 11% from FY 2021). Net income: د.ت16.6m (down 38% from FY 2021). Profit margin: 10% (down from 18% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 19% p.a. on average during the next 2 years, while revenues in the Global Leisure industry are expected to grow by 7.0%. Price Target Changed • Apr 30
Price target decreased by 25% to د.ت23.20 Down from د.ت31.00, the current price target is provided by 1 analyst. New target price is 37% above last closing price of د.ت16.99. Stock is down 42% over the past year. The company is forecast to post earnings per share of د.ت2.00 for next year compared to د.ت2.72 last year. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to د.ت21.49, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 14x in the Leisure industry globally. Total returns to shareholders of 86% over the past three years. Price Target Changed • Mar 22
Price target decreased by 14% to د.ت32.10 Down from د.ت37.30, the current price target is provided by 1 analyst. New target price is 43% above last closing price of د.ت22.45. Stock is down 20% over the past year. The company is forecast to post earnings per share of د.ت2.49 for next year compared to د.ت2.72 last year. Price Target Changed • Nov 16
Price target decreased to د.ت37.30 Down from د.ت40.20, the current price target is provided by 1 analyst. New target price is 41% above last closing price of د.ت26.49. Stock is down 14% over the past year. The company is forecast to post earnings per share of د.ت2.44 for next year compared to د.ت2.72 last year. Reported Earnings • Sep 03
First half 2022 earnings released: EPS: د.ت0 (vs د.ت1.33 in 1H 2021) First half 2022 results: EPS: د.ت0 (down from د.ت1.33 in 1H 2021). Revenue: د.ت87.0m (up 24% from 1H 2021). Net income: د.ت9.53m (down 27% from 1H 2021). Profit margin: 11% (down from 19% in 1H 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is expected to shrink by 2.6% compared to a 12% growth forecast for the Leisure industry in Tunisia. Price Target Changed • Aug 09
Price target increased to د.ت40.20 Up from د.ت36.27, the current price target is provided by 1 analyst. New target price is 24% above last closing price of د.ت32.40. Stock is up 18% over the past year. The company is forecast to post earnings per share of د.ت2.44 for next year compared to د.ت2.72 last year. Upcoming Dividend • Jul 14
Upcoming dividend of د.ت1.67 per share Eligible shareholders must have bought the stock before 21 July 2022. Payment date: 27 July 2022. Payout ratio is a comfortable 56% but the company is not cash flow positive. Trailing yield: 4.8%. Lower than top quartile of Tunisian dividend payers (6.6%). Higher than average of industry peers (2.1%). Price Target Changed • Jun 16
Price target decreased to د.ت36.60 Down from د.ت40.10, the current price target is provided by 1 analyst. New target price is 8.9% above last closing price of د.ت33.60. Stock is up 13% over the past year. The company is forecast to post earnings per share of د.ت2.44 for next year compared to د.ت2.99 last year. Reported Earnings • Apr 13
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: د.ت149.1m (up 24% from FY 2020). Net income: د.ت26.6m (up 60% from FY 2020). Profit margin: 18% (up from 14% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 4.6%, compared to a 12% growth forecast for the industry in Tunisia. Upcoming Dividend • May 10
Inaugural dividend of د.ت1.52 per share Eligible shareholders must have bought the stock before 17 May 2021. Payment date: 20 May 2021. This is the first dividend for Euro-Cycles since going public. The average dividend yield among industry peers is 1.7%. Upcoming Dividend • May 05
Inaugural dividend of د.ت1.52 per share Eligible shareholders must have bought the stock before 12 May 2021. Payment date: 18 May 2021. This is the first dividend for Euro-Cycles since going public. The average dividend yield among industry peers is 1.7%. Price Target Changed • May 01
Price target increased to د.ت39.50 Up from د.ت30.40, the current price target is provided by 1 analyst. New target price is 33% above last closing price of د.ت29.60. Stock is up 133% over the past year. Major Estimate Revision • May 01
Consensus revenue estimates increase to د.ت138.0m The consensus outlook for revenues in 2021 has improved. 2021 revenue forecast increased from د.ت113.0m to د.ت138.0m. EPS estimate increased from د.ت1.82 to د.ت2.05 per share. Net income forecast to shrink 1.9% next year vs 28% growth forecast for Leisure industry in Tunisia . Consensus price target up from د.ت23.40 to د.ت30.40. Share price was steady at د.ت29.60 over the past week. Reported Earnings • Apr 04
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: د.ت119.8m (up 37% from FY 2019). Net income: د.ت16.6m (up 90% from FY 2019). Profit margin: 14% (up from 10.0% in FY 2019). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Mar 02
New 90-day high: د.ت28.30 The company is up 10.0% from its price of د.ت25.73 on 02 December 2020. The Tunisian market is down 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Leisure industry, which is up 6.0% over the same period. Is New 90 Day High Low • Feb 10
New 90-day high: د.ت26.86 The company is up 12% from its price of د.ت23.97 on 12 November 2020. The Tunisian market is flat over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Leisure industry, which is up 16% over the same period. Is New 90 Day High Low • Jan 21
New 90-day high: د.ت26.80 The company is up 12% from its price of د.ت23.95 on 23 October 2020. The Tunisian market is up 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Leisure industry, which is up 17% over the same period. Is New 90 Day High Low • Dec 24
New 90-day high: د.ت26.00 The company is up 6.0% from its price of د.ت24.50 on 25 September 2020. The Tunisian market is up 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Leisure industry, which is up 25% over the same period. Is New 90 Day High Low • Nov 19
New 90-day high: د.ت25.70 The company is up 13% from its price of د.ت22.65 on 21 August 2020. The Tunisian market is down 2.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Leisure industry, which is up 15% over the same period. Price Target Changed • Oct 15
Price target raised to د.ت30.90 Up from د.ت24.70, the current price target is provided by 1 analyst. The new target price is 29% above the current share price of د.ت24.00. As of last close, the stock is up 48% over the past year.