| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Groupe Flo SA is a prominent player in the French and international restaurant industry, specializing in casual and themed dining experiences. Founded in 1968 and headquartered in Paris, the company operates a network of 130 owned and franchised restaurants under the Hippopotamus brand, known for its family-friendly steakhouse concept. Additionally, Groupe Flo manages high-end brasseries under the Les Grandes Brasseries name and themed restaurants in Disney Village, Marnes-La-Vallée, and other iconic Parisian locations like Jardin des Plantes and CNIT in La Défense. The company's diversified portfolio caters to a broad customer base, from tourists to local diners, reinforcing its strong presence in France's competitive restaurant sector. As part of the Consumer Cyclical sector, Groupe Flo's performance is closely tied to economic conditions and discretionary spending trends. Despite challenges, the company maintains a recognizable brand identity and strategic locations, positioning it as a key player in the European dining landscape.
Groupe Flo SA presents a mixed investment profile. The company reported a net loss of €6.4 million in FY 2021, with negative diluted EPS of €0.0084, reflecting operational challenges, possibly exacerbated by pandemic-related disruptions. However, it generated €21.6 million in operating cash flow, indicating some resilience in cash generation. The high total debt of €167.6 million against €54.5 million in cash raises liquidity concerns, though the company's established brand and franchising model provide stability. The dividend payout of €37.2915 per share suggests a commitment to shareholder returns, but sustainability may be questionable given the net loss. Investors should weigh Groupe Flo's strong market presence against its financial leverage and sector sensitivity to economic cycles.
Groupe Flo SA competes in the crowded French restaurant market, where differentiation through branding and customer experience is critical. Its Hippopotamus chain competes with mid-range casual dining brands, while its Les Grandes Brasseries and themed restaurants target higher-end and tourist-driven segments. The company's competitive advantage lies in its diversified portfolio, iconic locations (e.g., Disney Village and Parisian landmarks), and franchising model, which reduces capital intensity. However, its financial performance lags behind some peers, with negative net income in 2021. The restaurant industry's low barriers to entry and intense competition from both local independents and international chains pressure margins. Groupe Flo's reliance on tourism (especially in Disney Village locations) exposes it to seasonal and macroeconomic volatility. While its brand recognition is strong, the company must innovate to counter rising labor costs, shifting consumer preferences, and digital disruption in dining.