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Stock Analysis & ValuationGroupe Partouche S.A. (PARP.PA)

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17.95
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)37.36108
Intrinsic value (DCF)13.47-25
Graham-Dodd Method10.22-43
Graham Formula1.19-93

Strategic Investment Analysis

Company Overview

Groupe Partouche SA (PARP.PA) is a leading French casino and hospitality operator with a diversified portfolio of gaming, hotel, and leisure assets. Founded in 1903 and headquartered in Paris, the company operates 41 casinos across France and internationally, featuring a mix of table games, slot machines, and electronic roulette. Beyond gaming, Partouche owns and manages hotels, gourmet restaurants, health spas, and golf courses, enhancing its integrated resort offerings. The company also engages in interactive TV gaming, sports betting, and real estate, leveraging its Quarisma platform for real-time service management. With a strong presence in the European gambling and hospitality sector, Groupe Partouche SA combines traditional casino operations with modern digital gaming solutions, positioning itself as a key player in the consumer cyclical industry. Its diversified revenue streams and strategic investments in entertainment and leisure make it a notable contender in the competitive gaming and resort market.

Investment Summary

Groupe Partouche SA presents a mixed investment profile. On the positive side, the company benefits from a diversified business model spanning casinos, hotels, and digital gaming, reducing reliance on any single revenue stream. Its strong brand recognition in France and Europe provides a competitive edge. However, the company operates in a highly regulated industry, exposing it to potential legislative risks, particularly in gaming. The modest net income of €1.1 million (FY 2024) and diluted EPS of €0.11 suggest limited profitability, while a total debt of €269.3 million against cash reserves of €149.4 million indicates moderate leverage. The dividend yield of €0.32 per share may appeal to income-focused investors, but the lack of reported operating cash flow and capital expenditures data limits visibility into financial health. Investors should weigh the company’s established market position against regulatory uncertainties and financial constraints.

Competitive Analysis

Groupe Partouche SA competes in the European gaming and hospitality sector, where differentiation is driven by integrated resort offerings, digital innovation, and regulatory adaptability. The company’s strength lies in its extensive casino network and diversified leisure assets, which create cross-selling opportunities. Its Quarisma platform enhances operational efficiency, while investments in interactive gaming position it for digital growth. However, Partouche faces intense competition from larger global casino operators and regional players with stronger financials and broader geographic reach. The company’s reliance on the French market (where gaming regulations are stringent) could limit growth compared to competitors operating in more liberal jurisdictions. Additionally, its smaller scale relative to multinational peers may hinder its ability to invest in large-scale resort developments or aggressive marketing campaigns. To maintain competitiveness, Partouche must focus on niche markets, digital expansion, and cost optimization while navigating regulatory challenges.

Major Competitors

  • La Française des Jeux (FDJ.PA): La Française des Jeux (FDJ) dominates the French gambling market with a monopoly on lottery and sports betting. Its strong brand and government backing provide stability, but its lack of casino operations limits direct competition with Partouche. FDJ’s digital prowess and extensive retail network are strengths, though regulatory constraints may curb expansion.
  • Entain plc (GVC.L): Entain plc is a global leader in sports betting and online gaming, with brands like Ladbrokes and Bwin. Its digital-first approach and international presence contrast with Partouche’s land-based focus. Entain’s scale and technological edge are advantages, but it lacks Partouche’s integrated resort model and faces regulatory scrutiny in multiple markets.
  • Renault (RNO.PA): Note: Renault is incorrectly listed here; it is an automotive company and not a competitor to Partouche. A relevant competitor would be Barrière Group (private), a key French casino and hotel operator competing directly with Partouche in the domestic market.
  • Caesars Entertainment (CZR): Caesars Entertainment is a giant in the global casino industry, with iconic properties in Las Vegas and beyond. Its scale, brand recognition, and loyalty program are unmatched, but its focus on the U.S. market limits overlap with Partouche. Caesars’ digital gaming expansion poses a long-term competitive threat.
  • MGM Resorts International (MGM): MGM Resorts operates premier integrated resorts worldwide, including Bellagio and MGM Grand. Its luxury offerings and global reach dwarf Partouche’s operations, but its minimal presence in Europe reduces direct competition. MGM’s BetMGM joint venture highlights its digital ambitions, a space where Partouche is also active.
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