| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 52.63 | 75 |
La Française des Jeux SA (FDJ.PA) is a leading French gambling company specializing in lottery and online sports betting. Founded in 1933 and headquartered in Boulogne-Billancourt, France, FDJ operates a diversified portfolio of gaming products, including Loto, EuroMillions, Cash, Amigo, Joker, Bingo Live, Keno, Mission Patrimoine, and Parions Sport. The company serves a broad customer base through both retail and digital channels, capitalizing on France's regulated gambling market. As a state-partnered operator, FDJ benefits from a strong domestic presence while expanding internationally. The company's hybrid business model—combining traditional lottery draws with modern online sports betting—positions it well in the competitive Consumer Cyclical sector. With a market cap exceeding €5.5 billion, FDJ is a key player in Europe's Gambling, Resorts & Casinos industry, leveraging brand recognition, regulatory expertise, and omnichannel distribution.
FDJ presents a stable investment opportunity with moderate growth potential, supported by its dominant position in the French lottery market and expanding digital sports betting segment. The company's low beta (0.796) suggests relative resilience to market volatility, while its dividend yield (~3.2% based on €1.78/share) offers income appeal. However, regulatory risks in European gambling markets and high debt (€2.33 billion) could pressure margins. Revenue growth depends on successful digital expansion against entrenched competitors like Kindred and Flutter. Investors should weigh FDJ's strong cash flow generation (€577M operating cash flow) against intensifying competition and potential tax increases in core markets.
FDJ's competitive advantage stems from its French monopoly on lottery operations and first-mover advantage in sports betting through Parions Sport. The company's retail network of 30,000+ points of sale creates unparalleled distribution density in France—a barrier for digital-only competitors. FDJ's state affiliation provides regulatory stability but limits international expansion flexibility compared to private rivals. In sports betting, FDJ lags behind global leaders in technology and market share but benefits from local brand trust. The company's €149.9M capital expenditures suggest ongoing digital transformation efforts to compete with nimbler online operators. While FDJ's lottery segment delivers stable cash flows (98%+ margin games like Loto), its sports betting EBITDA margins (~15%) trail industry leaders. Competitive threats include customer migration to higher-odds offshore books and France's strict advertising laws constraining customer acquisition.