Buy Or Sell Opportunity • Jan 29
Now 45% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.9% to €0.70. The fair value is estimated to be €1.27, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 28% over the last 3 years. Meanwhile, the company has become profitable. New Risk • Jan 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of French stocks, typically moving 14% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (14% average weekly change). Market cap is less than US$10m (€6.30m market cap, or US$7.52m). Minor Risk Large one-off items impacting financial results. Major Estimate Revision • Oct 03
Consensus EPS estimates upgraded to €0.0079 loss The consensus outlook for fiscal year 2025 has been updated. 2025 losses forecast to reduce from -€0.01 to -€0.0079 per share. Revenue forecast unchanged from €11.7m at last update. Communications industry in France expected to see average net income growth of 56% next year. Consensus price target of €0.70 unchanged from last update. Share price rose 2.0% to €0.91 over the past week. Major Estimate Revision • Jun 06
Consensus EPS estimates fall by 26% The consensus outlook for fiscal year 2025 has been updated. 2025 expected loss increased from -€0.0079 to -€0.01 per share. Revenue forecast of €11.7m unchanged since last update. Communications industry in France expected to see average net income growth of 52% next year. Consensus price target of €0.70 unchanged from last update. Share price rose 12% to €0.57 over the past week. Duyuru • May 24
Munic S.A., Annual General Meeting, Jun 30, 2025 Munic S.A., Annual General Meeting, Jun 30, 2025. Location: 39 avenue de paris, villejuif France Reported Earnings • Apr 04
Full year 2024 earnings released Full year 2024 results: Revenue: €9.50m (down 45% from FY 2023). Net loss: €1.12m (loss narrowed 38% from FY 2023). New Risk • Apr 02
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of French stocks, typically moving 11% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Market cap is less than US$10m (€4.44m market cap, or US$4.79m). Minor Risk Currently unprofitable and not forecast to become profitable next year (€83k net loss next year). New Risk • Feb 04
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next year. Trailing 12-month net loss: €1.5m Forecast net loss in 1 year: €83k This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Market cap is less than US$10m (€4.87m market cap, or US$5.03m). Minor Risk Currently unprofitable and not forecast to become profitable next year (€83k net loss next year). Major Estimate Revision • Sep 29
Consensus forecasts updated The consensus outlook for fiscal year 2024 has been updated. Communications industry in France expected to see average net income growth of 33% next year. Consensus price target of €1.30 unchanged from last update. Share price rose 2.8% to €0.44 over the past week. New Risk • Jul 01
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -€1.7m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-€1.7m free cash flow). Share price has been highly volatile over the past 3 months (9.8% average weekly change). Market cap is less than US$10m (€4.46m market cap, or US$4.77m). New Risk • Jun 03
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 French stocks, typically moving 9.2% 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 Risk Market cap is less than US$10m (€4.99m market cap, or US$5.44m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-€1.7m). Share price has been volatile over the past 3 months (9.2% average weekly change). Duyuru • May 20
Munic S.A., Annual General Meeting, Jun 24, 2024 Munic S.A., Annual General Meeting, Jun 24, 2024. Location: 39 avenue de paris, villejuif France New Risk • Oct 13
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €8.97m (US$9.42m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Market cap is less than US$10m (€8.97m market cap, or US$9.42m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-€4.4m). Currently unprofitable and not forecast to become profitable next year (€51k net loss next year). Shareholders have been diluted in the past year (14% increase in shares outstanding). New Risk • Oct 10
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -€4.4m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (12% average weekly change). Minor Risks Less than 1 year of cash runway based on current free cash flow (-€4.4m). Currently unprofitable and not forecast to become profitable next year (€51k net loss next year). Shareholders have been diluted in the past year (14% increase in shares outstanding). Market cap is less than US$100m (€11.3m market cap, or US$11.9m). New Risk • Aug 13
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 French stocks, typically moving 6.1% 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: Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Shareholders have been diluted in the past year (14% increase in shares outstanding). Market cap is less than US$100m (€20.7m market cap, or US$22.7m). Major Estimate Revision • May 11
Consensus revenue estimates decrease by 17% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from €27.0m to €22.5m. EPS estimate unchanged at €0.019 per share. Net income forecast to grow 517% next year vs 1.2% growth forecast for Communications industry in France. Consensus price target down from €4.50 to €4.00. Share price was steady at €2.91 over the past week. Price Target Changed • May 10
Price target decreased by 15% to €4.00 Down from €4.70, the current price target is provided by 1 analyst. New target price is 37% above last closing price of €2.91. Stock is down 4.6% over the past year. Reported Earnings • Mar 31
Full year 2022 earnings released Full year 2022 results: Revenue: €21.6m (down 4.1% from FY 2021). Net income: €15.0k (up €244.4k from FY 2021). Profit margin: 0.1% (up from net loss in FY 2021). Revenue is forecast to grow 32% p.a. on average during the next 2 years, compared to a 9.7% growth forecast for the Communications industry in France. Price Target Changed • Mar 06
Price target decreased by 10.0% to €4.50 Down from €5.00, the current price target is provided by 1 analyst. New target price is 42% above last closing price of €3.16. Stock is up 22% over the past year. The company is forecast to post a net loss per share of €0.055 next year compared to a net loss per share of €0.029 last year. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to €2.99, the stock trades at a forward P/E ratio of 96x. Average forward P/E is 21x in the Communications industry in Europe. Total loss to shareholders of 6.6% over the past year. Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment improved over the past week After last week's 19% share price gain to €3.87, the stock trades at a forward P/E ratio of 125x. Average forward P/E is 18x in the Communications industry in Europe. Total returns to shareholders of 45% over the past year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Francois Goubard was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 03
First half 2022 earnings released: EPS: €0 (vs €0.19 loss in 1H 2021) First half 2022 results: EPS: €0 (improved from €0.19 loss in 1H 2021). Revenue: €10.7m (up 65% from 1H 2021). Net loss: €88.6k (loss narrowed 94% from 1H 2021). Revenue is forecast to grow 41% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Communications industry in France. Major Estimate Revision • Sep 29
Consensus revenue estimates fall by 17% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from €26.0m to €21.5m. Forecast losses increased from -€0.01 to -€0.05 per share. Communications industry in France expected to see average net income growth of 23% next year. Consensus price target down from €5.00 to €4.70. Share price was steady at €2.82 over the past week. Major Estimate Revision • Jul 28
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from €34.1m to €26.0m. EPS estimate increased from -€0.40 to -€0.01 per share. Communications industry in France expected to see average net income growth of 7.5% next year. Consensus price target down from €6.00 to €5.00. Share price rose 25% to €3.30 over the past week. Price Target Changed • Apr 27
Price target decreased to €6.00 Down from €6.95, the current price target is provided by 1 analyst. New target price is 103% above last closing price of €2.95. Stock is down 32% over the past year. Board Change • Apr 27
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 new directors. No experienced directors. 1 highly experienced director. 2 independent directors (3 non-independent directors). Chairman of the Board & CEO Aaron Solomon is the most experienced director on the board, commencing their role in 2007. Independent Director Francois Goubard was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Apr 06
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: €19.3m (up 100% from FY 2020). Net loss: €229.0k (loss narrowed 96% from FY 2020). Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 77%, compared to a 17% growth forecast for the industry in France. Breakeven Date Change • Jan 26
No longer forecast to breakeven The analyst covering Munic no longer expects the company to break even during the foreseeable future. The company was expected to make a profit of €1.38m in 2023. New forecast suggests the company will make a loss of €1.52m in 2023. Price Target Changed • Apr 21
Price target decreased to €6.45 Down from €6.95, the current price target is provided by 1 analyst. New target price is 59% above last closing price of €4.06. Stock is down 23% over the past year. Is New 90 Day High Low • Dec 02
New 90-day high: €4.75 The company is up 12% from its price of €4.26 on 03 September 2020. The French market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €57.89 per share. Is New 90 Day High Low • Nov 03
New 90-day low: €2.00 The company is down 55% from its price of €4.40 on 04 August 2020. The French market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €56.24 per share. Is New 90 Day High Low • Oct 16
New 90-day low: €2.97 The company is down 37% from its price of €4.70 on 17 July 2020. The French market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €57.30 per share. Reported Earnings • Oct 06
First half earnings released Over the last 12 months the company has reported total losses of €2.84m, with losses widening by 93% from the prior year. Total revenue was €18.7m over the last 12 months, up 7.1% from the prior year. Is New 90 Day High Low • Sep 25
New 90-day low: €4.06 The company is down 20% from its price of €5.10 on 26 June 2020. The French market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 19% over the same period.