SOLOCAL GROUP (LOCAL.PA)

FR00140006O9 - Common Stock

0.055  -0.01 (-9.84%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to LOCAL. LOCAL was compared to 25 industry peers in the Interactive Media & Services industry. While LOCAL is still in line with the averages on profitability rating, there are concerns on its financial health. LOCAL does not seem to be growing, but still is valued expensively.



4

1. Profitability

1.1 Basic Checks

LOCAL had negative earnings in the past year.
LOCAL had a positive operating cash flow in the past year.
In multiple years LOCAL reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: LOCAL reported negative operating cash flow in multiple years.

1.2 Ratios

With a Return On Assets value of -11.05%, LOCAL is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
LOCAL had an Average Return On Invested Capital over the past 3 years of 50.92%. This is significantly above the industry average of 26.61%.
The last Return On Invested Capital (%ROIC%%) for LOCAL is well below the 3 year average (50.92%), which needs to be investigated, but indicates that LOCAL had better years and this may not be a problem.
Industry RankSector Rank
ROA -11.05%
ROE N/A
ROIC N/A
ROA(3y)5.91%
ROA(5y)2.37%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)50.92%
ROIC(5y)N/A

1.3 Margins

LOCAL has a Operating Margin of 9.55%. This is comparable to the rest of the industry: LOCAL outperforms 40.91% of its industry peers.
LOCAL's Operating Margin has improved in the last couple of years.
LOCAL has a Gross Margin of 69.22%. This is in the better half of the industry: LOCAL outperforms 68.18% of its industry peers.
In the last couple of years the Gross Margin of LOCAL has remained more or less at the same level.
Industry RankSector Rank
OM 9.55%
PM (TTM) N/A
GM 69.22%
OM growth 3Y1.79%
OM growth 5Y2.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.33%
GM growth 5Y-0.21%

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOCAL is creating value.
The number of shares outstanding for LOCAL remains at a similar level compared to 1 year ago.
LOCAL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LOCAL is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of -5.48, we must say that LOCAL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LOCAL (-5.48) is worse than 86.36% of its industry peers.
The Debt to FCF ratio of LOCAL is 22.14, which is on the high side as it means it would take LOCAL, 22.14 years of fcf income to pay off all of its debts.
LOCAL has a Debt to FCF ratio of 22.14. This is in the lower half of the industry: LOCAL underperforms 63.64% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 22.14
Altman-Z -5.48
ROIC/WACCN/A
WACC3.93%

2.3 Liquidity

A Current Ratio of 0.28 indicates that LOCAL may have some problems paying its short term obligations.
LOCAL has a Current ratio of 0.28. This is amonst the worse of the industry: LOCAL underperforms 90.91% of its industry peers.
LOCAL has a Quick Ratio of 0.28. This is a bad value and indicates that LOCAL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.28, LOCAL is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.28
Quick Ratio 0.28

1

3. Growth

3.1 Past

The earnings per share for LOCAL have decreased strongly by -266.18% in the last year.
Looking at the last year, LOCAL shows a decrease in Revenue. The Revenue has decreased by -7.20% in the last year.
LOCAL shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.56% yearly.
EPS 1Y (TTM)-266.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-323.87%
Revenue 1Y (TTM)-7.2%
Revenue growth 3Y-8.69%
Revenue growth 5Y-11.56%
Sales Q2Q%-7.55%

3.2 Future

LOCAL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -29.03% yearly.
The Revenue is expected to decrease by -1.07% on average over the next years.
EPS Next Y-131.25%
EPS Next 2Y-56.12%
EPS Next 3Y-25.99%
EPS Next 5Y-29.03%
Revenue Next Year-10.45%
Revenue Next 2Y-7.17%
Revenue Next 3Y-3.48%
Revenue Next 5Y-1.07%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for LOCAL. In the last year negative earnings were reported.
Also next year LOCAL is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LOCAL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LOCAL is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 0.55
EV/EBITDA 2.68

4.3 Compensation for Growth

LOCAL's earnings are expected to decrease with -25.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-56.12%
EPS Next 3Y-25.99%

0

5. Dividend

5.1 Amount

LOCAL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

SOLOCAL GROUP

EPA:LOCAL (5/24/2024, 7:00:00 PM)

0.055

-0.01 (-9.84%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.23M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.05%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 9.55%
PM (TTM) N/A
GM 69.22%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.28
Quick Ratio 0.28
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-266.18%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-131.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.2%
Revenue growth 3Y-8.69%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y