| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 200.78 | 6593 |
| Intrinsic value (DCF) | 0.93 | -69 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 128.30 | 4177 |
Xilam Animation is a leading French audiovisual production company specializing in animated content for both children and adults. Founded in 1999 and headquartered in Paris, Xilam creates, produces, and distributes original animated programs across multiple platforms, including television, subscription video-on-demand (SVOD) services like Netflix, Disney+, and Amazon, as well as advertising video-on-demand (AVOD) platforms such as YouTube and Pluto TV. The company is renowned for its popular brands like 'Oggy and the Cockroaches,' 'Zig & Sharko,' and the award-winning 'I Lost My Body.' Xilam's diverse portfolio includes 3D animated films, short films, commercials, and feature films, making it a key player in the global animation industry. With a strong presence in international markets, Xilam leverages its creative expertise and extensive distribution network to cater to a broad audience, reinforcing its position in the competitive entertainment sector under the Communication Services umbrella.
Xilam Animation presents a mixed investment profile. The company operates in a high-growth segment of the entertainment industry, with increasing demand for animated content driven by global streaming platforms. However, its financials reveal challenges, including a net loss of €26.7 million in the latest fiscal year and negative diluted EPS of -€4.34. Positive aspects include a solid operating cash flow of €31.7 million and a manageable debt level relative to its market cap. The lack of dividends may deter income-focused investors, but Xilam's strong brand portfolio and international distribution channels offer potential for long-term growth if it can improve profitability. Investors should weigh its creative strengths against financial volatility.
Xilam Animation competes in a niche but highly competitive segment of the animation industry, dominated by larger studios with greater financial resources. Its competitive advantage lies in its strong brand recognition (e.g., 'Oggy and the Cockroaches') and ability to produce high-quality content for both children and adults. The company's partnerships with major streaming platforms like Netflix and Disney+ enhance its distribution reach, though it faces stiff competition from global giants like Disney and DreamWorks. Xilam's focus on original IP and cost-efficient production in France provides some insulation against larger competitors, but its smaller scale limits its ability to invest in blockbuster projects. The company's recent financial struggles highlight the risks of operating in a capital-intensive industry with fluctuating demand. However, its creative reputation and diversified content pipeline position it well for niche success, particularly in European and international markets where localized content is valued.