La Française des Jeux SA
La Française des Jeux SA Fundamental Analysis
La Française des Jeux SA (LFDJF) shows moderate financial fundamentals with a PE ratio of 25.79, profit margin of 4.78%, and ROE of 18.76%. The company generates $3.6B in annual revenue with strong year-over-year growth of 19.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LFDJF's fundamental strength across five key dimensions:
Efficiency Score
WeakLFDJF struggles to generate sufficient returns from assets.
Valuation Score
ModerateLFDJF shows balanced valuation metrics.
Growth Score
ModerateLFDJF shows steady but slowing expansion.
Financial Health Score
WeakLFDJF carries high financial risk with limited liquidity.
Profitability Score
ModerateLFDJF maintains healthy but balanced margins.
Key Financial Metrics
Is LFDJF Expensive or Cheap?
P/E Ratio
LFDJF trades at 25.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LFDJF's PEG of -0.65 indicates potential undervaluation.
Price to Book
The market values La Française des Jeux SA at 4.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.09 times EBITDA. This is generally considered low.
How Well Does LFDJF Make Money?
Net Profit Margin
For every $100 in sales, La Française des Jeux SA keeps $4.78 as profit after all expenses.
Operating Margin
Core operations generate 15.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.76 in profit for every $100 of shareholder equity.
ROA
La Française des Jeux SA generates $3.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
La Française des Jeux SA produces operating cash flow of $771.54M, showing steady but balanced cash generation.
Free Cash Flow
La Française des Jeux SA generates strong free cash flow of $504.85M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.73 in free cash annually.
FCF Yield
LFDJF converts 11.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How LFDJF Stacks Against Its Sector Peers
| Metric | LFDJF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.79 | 23.78 | Neutral |
| ROE | 18.76% | 1098.00% | Weak |
| Net Margin | 4.78% | -626.00% (disorted) | Weak |
| Debt/Equity | 2.43 | 0.86 | Weak (High Leverage) |
| Current Ratio | 0.64 | 2.64 | Weak Liquidity |
| ROA | 3.01% | -8081.00% (disorted) | Weak |
LFDJF outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews La Française des Jeux SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
97.58%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-15.11%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
15.09%
Industry Style: Cyclical, Growth, Discretionary
High Growth