| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 44.48 | 99 |
| Intrinsic value (DCF) | 158.40 | 609 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 52.63 | 136 |
La Française des Jeux SA (FDJ) is a leading French gambling company specializing in lottery and online sports betting. Founded in 1933 and headquartered in Boulogne-Billancourt, France, FDJ operates under a state-licensed monopoly for lottery games while expanding into competitive online sports betting through its Parions Sport platform. The company’s diverse brand portfolio includes iconic games like Loto, EuroMillions, and Keno, alongside digital offerings such as Bingo Live. FDJ benefits from a strong domestic presence, regulatory stability, and a well-established retail network. As a key player in the European gambling sector, FDJ leverages its hybrid retail-digital model to capture growth in both traditional and online gaming markets. With a market cap exceeding €6 billion, FDJ remains a dominant force in France’s consumer cyclical sector, balancing steady lottery revenues with higher-margin sports betting expansion.
FDJU.PA presents a stable investment opportunity with moderate growth potential, supported by its monopoly on French lottery operations and a growing online sports betting segment. The company’s revenue (€3.07B in FY 2024) and net income (€398.8M) reflect strong profitability, while a beta of 0.734 suggests lower volatility compared to the broader market. However, high total debt (€2.33B) and reliance on regulated markets pose risks. The dividend yield (~3.5% based on a €2.05/share payout) adds appeal for income-focused investors. FDJ’s expansion into digital betting faces stiff competition, but its entrenched retail footprint and state backing provide resilience.
FDJ’s competitive advantage stems from its exclusive rights to operate France’s national lottery, ensuring stable cash flows. Its retail network of 24,000+ points of sale creates a high barrier to entry for competitors. In online sports betting, FDJ’s Parions Sport competes with global operators but benefits from local brand recognition and regulatory familiarity. The company’s hybrid model (retail + digital) differentiates it from pure-play online rivals. However, FDJ’s growth is constrained by its dependence on the French market, where regulatory changes (e.g., advertising restrictions) could impact margins. Unlike competitors with global diversification, FDJ’s international presence is limited. Its focus on responsible gaming aligns with EU regulations but may limit aggressive customer acquisition strategies. Capital expenditures (€149.9M in FY 2024) are primarily directed toward digital transformation, though scalability outside France remains untested.