Maisons du Monde SA

Maisons du Monde SA exhibits a severely distressed capital structure characterized by high leverage and acute liquidity constraints. The company reports total equity of EUR 78.1 million against total liabilities of EUR 1.01 billion, resulting in a debt-to-equity ratio of 9.31. With cash and equivalents at a negligible EUR 68,000 and long-term debt of EUR 727.4 million, the firm holds no net cash. The current ratio stands at 0.57, indicating that current liabilities significantly exceed current assets, which aligns with the medium liquidity risk assessment. The market capitalization of EUR 8.5 million implies a price-to-book ratio of 0.11, suggesting the market values the company at a steep discount to its tangible book value.

Profitability metrics reflect a significant operational impairment. The company recorded an operating income of -EUR 398.3 million and a net income of -EUR 405.8 million on revenues of EUR 973.2 million. This results in a negative return on equity of -5.19 and a negative return on assets of -0.37. The gross profit of EUR 633.5 million indicates that while the core merchandise margin exists, operating expenses and interest costs are overwhelming the business, leading to substantial net losses. The negative EV/EBITDA of -1.85 further underscores the lack of earnings power relative to the enterprise value.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The classification as Specialty Retail suggests a focus on home furnishings, but without specific segment breakdowns, the diversity of revenue streams remains unverified in this analysis.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot shows a single period of significant loss, but without prior year comparisons or quarterly trends, the directionality of revenue growth or contraction cannot be quantified from the provided data.

Risk factors are dominated by liquidity and solvency concerns. The key flag notes that net cash is negative after subtracting total debt, highlighting a reliance on external financing or asset sales to meet obligations. The dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 38.49 million, suggesting no immediate options or convertible debt impacting share count. However, the high debt load and negative operating income create a precarious financial position.

Recent observations from investor relations indicate a mean analyst price target of EUR 1.04, with a median of EUR 1.04, a high of EUR 1.80, and a low of EUR 0.28. The mean recommendation is 3.00 (Hold), with two hold ratings and no buy or strong buy ratings, reflecting cautious sentiment among analysts. The current market price of EUR 0.22 is significantly below the mean target, implying potential upside if the company stabilizes, or further downside if solvency issues persist.

Analysts project 477.8% upside to a mean price target of EUR 1.04, significantly above the current market price of EUR 0.18.

The company reduced long-term debt from EUR 837 million in 2023 to EUR 690 million in 2024, indicating deleveraging efforts.

Capital expenditure relative to revenue is above the cohort median, suggesting continued investment in business infrastructure and growth.

The debt-to-equity ratio stands at 9.31, placing the company in the bottom quartile compared to its peer cohort.

Revenue €224.7M, +5,2% YoY.

• ▍Revenue €224.7M, +5,2% YoY

Revenue €221.4M, −10,6% YoY.

• ▍Revenue €221.4M, −10,6% YoY

Revenue €213.5M.

• ▍Revenue €213.5M

Revenue €247.7M.

• ▍Revenue €247.7M

Revenue €973.2M, −5,5% YoY; Operating income −299,9% YoY.

• ▍Revenue €973.2M, −5,5% YoY
• ▍Operating income −299,9% YoY
• ▍Net income −251,8% YoY
• ▍Free cash flow −5 025,6% YoY
• ▍Net margin -41.7%

Revenue €1.03B, −10,9% YoY; Operating income −374,4% YoY.

• ▍Revenue €1.03B, −10,9% YoY
• ▍Operating income −374,4% YoY
• ▍Net income −1 445,9% YoY
• ▍Free cash flow −95,3% YoY
• ▍Net margin -11.2%

Revenue €1.16B, −9,5% YoY; Operating income −48,8% YoY.

• ▍Revenue €1.16B, −9,5% YoY
• ▍Operating income −48,8% YoY
• ▍Net income −75,0% YoY
• ▍Free cash flow +8,5% YoY
• ▍Net margin 0.7%

Revenue €1.28B, −5,6% YoY; Operating income −37,6% YoY.

• ▍Revenue €1.28B, −5,6% YoY
• ▍Operating income −37,6% YoY
• ▍Net income −55,7% YoY
• ▍Free cash flow −34,5% YoY
• ▍Net margin 2.7%

Revenue €1.35B; Operating income €113.7M.

• ▍Revenue €1.35B
• ▍Operating income €113.7M
• ▍Net margin 5.7%