SOLOCAL GROUP (LOCAL.PA) Stock Fundamental Analysis

Europe - Euronext Paris - EPA:LOCAL - FR001400SA10 - Common Stock

4.225 EUR

-0.02 (-0.35%)

Last: 1/27/2026, 7:00:00 PM

Fundamental Rating

Taking everything into account, LOCAL scores 4 out of 10 in our fundamental rating. LOCAL was compared to 19 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 is valued quite cheap, while showing a decent growth score. This is a good combination!

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1. Profitability

1.1 Basic Checks

In the past year LOCAL was profitable.
In the past year LOCAL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LOCAL reported negative net income in multiple years.
Of the past 5 years LOCAL 4 years had a positive operating cash flow.

1.2 Ratios

LOCAL has a Return On Assets of 48.91%. This is amongst the best in the industry. LOCAL outperforms 100.00% of its industry peers.

		Industry Rank	Sector Rank
ROA	48.91%
ROE	N/A
ROIC	N/A

ROA(3y)6.93%

ROA(5y)7.88%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

LOCAL's Profit Margin of 47.63% is amongst the best of the industry. LOCAL outperforms 100.00% of its industry peers.
LOCAL's Profit Margin has improved in the last couple of years.
LOCAL's Gross Margin of 61.60% is in line compared to the rest of the industry. LOCAL outperforms 57.89% of its industry peers.
LOCAL's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	47.63%
GM	61.6%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y86.87%

PM growth 5Y42.45%

GM growth 3Y-6.81%

GM growth 5Y-4.92%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

LOCAL does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LOCAL has more shares outstanding
The number of shares outstanding for LOCAL has been increased compared to 5 years ago.
LOCAL has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.74, we must say that LOCAL is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.74, LOCAL perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
LOCAL has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as LOCAL would need 2.66 years to pay back of all of its debts.
LOCAL has a Debt to FCF ratio (2.66) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	2.66
Altman-Z	0.74

ROIC/WACCN/A

WACC6.43%

2.3 Liquidity

A Current Ratio of 0.54 indicates that LOCAL may have some problems paying its short term obligations.
With a Current ratio value of 0.54, LOCAL is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that LOCAL may have some problems paying its short term obligations.
The Quick ratio of LOCAL (0.54) is worse than 84.21% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.54
Quick Ratio	0.54

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

LOCAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 115.77%, which is quite impressive.
The Earnings Per Share has been growing by 41.15% on average over the past years. This is a very strong growth
Looking at the last year, LOCAL shows a decrease in Revenue. The Revenue has decreased by -0.78% in the last year.
The Revenue has been decreasing by -8.63% on average over the past years.

EPS 1Y (TTM)115.77%

EPS 3Y-18.3%

EPS 5Y41.15%

EPS Q2Q%100.72%

Revenue 1Y (TTM)-0.78%

Revenue growth 3Y-7.89%

Revenue growth 5Y-8.63%

Sales Q2Q%0.18%

3.2 Future

Based on estimates for the next years, LOCAL will show a very strong growth in Earnings Per Share. The EPS will grow by 29.62% on average per year.
Based on estimates for the next years, LOCAL will show a small growth in Revenue. The Revenue will grow by 1.78% on average per year.

EPS Next Y85.59%

EPS Next 2Y46.72%

EPS Next 3Y29.62%

EPS Next 5YN/A

Revenue Next Year-1.47%

Revenue Next 2Y0.81%

Revenue Next 3Y1.78%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

LOCAL is valuated cheaply with a Price/Earnings ratio of 0.77.
LOCAL's Price/Earnings ratio is rather cheap when compared to the industry. LOCAL is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of LOCAL to the average of the S&P500 Index (28.87), we can say LOCAL is valued rather cheaply.
A Price/Forward Earnings ratio of 45.58 indicates a quite expensive valuation of LOCAL.
LOCAL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, LOCAL is valued quite expensively.

		Industry Rank	Sector Rank
PE	0.77
Fwd PE	45.58

4.2 Price Multiples

LOCAL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LOCAL is cheaper than 94.74% of the companies in the same industry.
LOCAL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LOCAL is cheaper than 100.00% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.83
EV/EBITDA	3.68

4.3 Compensation for Growth

LOCAL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LOCAL's earnings are expected to grow with 29.62% in the coming years.