| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.08 | -88 |
EuropaCorp (ECP.PA) is a France-based global entertainment company specializing in film production, distribution, and theater operations. Founded in 1999 and headquartered in Saint-Denis, EuropaCorp produces and distributes a diverse portfolio of cinematographic works, TV dramas, and episodic series for various platforms. The company also manages international TV rights, licenses, and film soundtracks, positioning itself as a key player in the European entertainment industry. EuropaCorp operates theaters and distributes films across multiple formats, including on-demand and video, catering to a broad audience. As part of the Communication Services sector, EuropaCorp competes in the dynamic and highly competitive global entertainment market, leveraging its strong production capabilities and distribution network to maintain relevance in an industry increasingly dominated by streaming platforms and digital content.
EuropaCorp presents a mixed investment profile. The company reported a net income of €122.6 million in FY 2021, with diluted EPS of €1.28, indicating profitability. However, its revenue of €41.5 million is relatively modest, and the company carries significant total debt of €100.4 million, offset by €47 million in cash. The beta of 1.07 suggests moderate volatility relative to the market. EuropaCorp’s dividend yield may appeal to income-focused investors, but its small market cap and exposure to the cyclical entertainment industry pose risks. The shift toward digital streaming and competition from larger studios could pressure traditional film production and distribution businesses. Investors should weigh EuropaCorp’s niche positioning against broader industry trends.
EuropaCorp operates in a highly competitive global entertainment market dominated by major studios and streaming platforms. Its competitive advantage lies in its strong European production and distribution network, particularly in French-language and international co-productions. Unlike Hollywood giants, EuropaCorp focuses on mid-budget films and arthouse cinema, which allows it to carve out a niche. However, the company faces intense competition from deep-pocketed streaming services like Netflix and Amazon Prime, which are reshaping content consumption. EuropaCorp’s theater operations also face pressure from declining theatrical attendance and the rise of digital releases. While the company has a recognizable brand in European cinema, its smaller scale limits its ability to compete with global studios in terms of marketing budgets and franchise-building. Strategic partnerships and a focus on high-quality, localized content could help EuropaCorp maintain its relevance in a rapidly evolving industry.