Intrinsic Value Speed Rabbit Pizza S.A. (MLSRP.PA)

• Previous Close: €23.60
• Intrinsic Value: €14.16
• Upside potential: -40%

Stock Valuation Context

Business Model And Market Position

Speed Rabbit Pizza SA operates a chain of pizza restaurants in France, offering a diverse menu that includes starters, salads, Fusilli pasta, desserts, and beverages. The company leverages both dine-in and online sales channels, catering to a broad customer base seeking convenience and affordability. Positioned in the competitive French food distribution sector, Speed Rabbit Pizza differentiates itself through a focused menu and efficient service model, targeting urban and suburban markets. The company’s hybrid approach—combining physical locations with digital ordering—enhances its accessibility and aligns with evolving consumer preferences for quick-service dining. Despite operating in a crowded industry, its regional presence and streamlined operations provide a stable foothold in the French fast-casual segment. The lack of international expansion suggests a deliberate focus on domestic market penetration and operational efficiency.

Revenue Profitability And Efficiency

In FY 2023, Speed Rabbit Pizza reported revenue of €814,906, with net income of €257,176, reflecting a healthy net margin of approximately 31.6%. Operating cash flow stood at €2,496, though capital expenditures were negligible, indicating minimal reinvestment needs. The company’s profitability metrics suggest efficient cost management, likely driven by its standardized menu and centralized operations.

Earnings Power And Capital Efficiency

The diluted EPS of €0.15 underscores the company’s ability to generate earnings despite its modest scale. With no significant capital expenditures, Speed Rabbit Pizza demonstrates capital efficiency, though its low operating cash flow relative to net income may warrant scrutiny. The absence of debt servicing pressures supports stable earnings retention.

Balance Sheet And Financial Health

Speed Rabbit Pizza holds €34,602 in cash against total debt of €190,185, indicating a leveraged but manageable position. The lack of dividend payouts suggests a conservative approach to liquidity management. The balance sheet reflects a focus on maintaining operational flexibility rather than aggressive growth or shareholder returns.

Growth Trends And Dividend Policy

The company has not pursued dividend distributions, prioritizing retained earnings over shareholder payouts. Growth appears organic, with no evident expansion initiatives in FY 2023. The stable revenue and profitability trends suggest maturity in its current markets, though scalability may be limited without geographic or menu diversification.

Valuation And Market Expectations

With a market capitalization of €23.1 million and a negative beta of -0.729, Speed Rabbit Pizza exhibits low correlation to broader market movements, possibly due to its niche positioning. The valuation reflects its small-scale operations and localized focus, with limited investor expectations for near-term expansion or volatility.

Strategic Advantages And Outlook

Speed Rabbit Pizza’s strengths lie in its focused business model and regional brand recognition. However, its reliance on the French market and lack of diversification pose risks. The outlook remains stable but constrained by the competitive landscape and limited growth levers. Strategic initiatives to enhance digital sales or menu innovation could unlock incremental opportunities.

Sources

Company description, financial data provided