| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 742.74 | -67 |
| Intrinsic value (DCF) | 1352.49 | -40 |
| Graham-Dodd Method | 2565.72 | 14 |
| Graham Formula | 1787.35 | -21 |
Société Fermière du Casino Municipal de Cannes (FCMC.PA) is a leading French operator of luxury casinos and hotels, primarily located in the prestigious city of Cannes. Founded in 1919, the company manages high-end properties under the Barrière brand, including Hôtel Barrière Le Majestic, Hôtel Barrière Le Gray d'Albion, and Hôtel Barrière Le Carl Gustaf St-Barth, offering 565 rooms, suites, and cottages. Additionally, it operates two renowned casinos—Casino Barrière Croisette and Casino Barrière Les Princes—featuring 350 slot machines and 38 gaming tables. The company also runs eight restaurants, nine bars, and a spa, catering to affluent tourists and gaming enthusiasts. As part of the Consumer Cyclical sector, FCMC.PA thrives in the Gambling, Resorts & Casinos industry, benefiting from Cannes' status as a global luxury destination. With a strong brand presence and strategic location, the company remains a key player in France's hospitality and gaming market.
Société Fermière du Casino Municipal de Cannes presents a niche investment opportunity in the luxury gaming and hospitality sector. The company benefits from its prime location in Cannes, a high-profile destination for affluent travelers, and its association with the prestigious Barrière brand. Financials indicate stable revenue (€153.6M) and solid net income (€22.8M), supported by strong operating cash flow (€42.4M). However, the lack of dividends may deter income-focused investors. The low beta (0.488) suggests relative stability compared to broader markets, but reliance on tourism makes it vulnerable to economic downturns and travel disruptions. Expansion opportunities are limited by its regional focus, though its strong brand and operational efficiency provide resilience.
FCMC.PA holds a competitive edge through its exclusive Barrière-branded properties in Cannes, a globally recognized luxury destination. Its integrated model—combining casinos, high-end hotels, and fine dining—enhances revenue per guest and customer retention. The company’s long-standing reputation (founded in 1919) and prime real estate in Cannes create high barriers to entry for competitors. However, its regional concentration in France limits diversification, exposing it to local regulatory and economic risks. Unlike larger global casino operators, FCMC.PA lacks scale, which may hinder its ability to compete for international high-rollers. Its focus on luxury differentiates it from mass-market casinos, but it faces stiff competition from other high-end resorts in Europe. The company’s low debt (€51.9M) and healthy cash position (€79.2M) provide financial flexibility, though capital expenditures (€-13.2M) suggest modest reinvestment in property upgrades.