Deezer S.A. (DEEZR.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Deezer S.A. provides music streaming services worldwide.The company streams songs, audio books, podcast, and radio channels.It offers its music steaming services through website, Deezer.com and other wireless audio systems; and operates in approximately 180 countries.

The company is based in Paris, France.

Show Full description

1.b. Last Insights on DEEZR

Deezer S.A.'s recent performance was negatively impacted by the emergence of a new competitor in the global digital music market. Lion Music's upgraded global mobile data distribution platform has been launched, potentially disrupting Deezer's market share. Additionally, Universal Music Group's recognition as one of TIME's 100 Most Influential Companies may further solidify its position in the industry, posing a threat to Deezer's market dominance.

1.c. Company Highlights

Last Price	1.02
Change Percentage	1.99%
Open	1.01
Previous Close	1.0
Market Cap ( Millions)	126
Volume	3399
Year High	1.72
Year Low	0.9
M A 50	1.06
M A 200	1.23

FCF Yield	4.41%
Dividend Yield	0.00%
ROE	5.78%
Debt / Equity	-10.53%
Net Debt / EBIDTA	2057.44%
Price To Book	-0.51
Price Earnings Ratio	-8.94
Price To FCF	22.66
Price To sales	0.23
EV / EBITDA	-56.63

2. Transcript Summary

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3. NewsRoom

North America Music Streaming Market Forecast and Company Analysis Report 2025-2033 Featuring SoundCloud, Apple, iHeartMedia, Amazon, YouTube, Deezer, Pandora, Tencent, Tidal, Spotify

Nov -28

Source:

Warner Music Group, Udio settle copyright case, plan new AI song creation platform

Nov -19

Source:

Spotify Stock Drops After Earnings. What Higher Prices Did to Growth.

Nov -04

Source:

Spotify Stock Climbs After Earnings. What Higher Prices Did to Growth.

Nov -04

Source:

Airbuds is the music social network Apple and Spotify wish they had built

Sep -17

Source:

Spotify Stock Misses a Beat. Blame This Cost for a Surprise Loss.

Jul -29

Source:

TikTok adds YouTube Music as an option to save songs playing in videos

Jul -29

Source:

LION MUSIC Global Mobile Data Distribution Platform | Empowering Musicians to Achieve Cross-regional Revenue Growth

Jul -05

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.33%)

6. Segments

Direct

Expected Growth: 10%

Deezer S.A.'s 10% growth is driven by increasing adoption of music streaming services, expansion into new markets, and strategic partnerships. Rising demand for on-demand audio content, improved user experience, and competitive pricing also contribute to growth. Additionally, Deezer's focus on emerging markets, such as Latin America and Asia, provides a significant growth opportunity.

Partnerships

Expected Growth: 8%

Deezer S.A.'s 8% growth in partnerships is driven by increasing demand for music streaming services, strategic collaborations with telcos and OEMs, expansion into new markets, and innovative features such as Flow and Discover, which enhance user experience and attract new partners.

Other

Expected Growth: 7%

Deezer S.A.'s 'Other' segment growth is driven by increasing demand for B2B music streaming services, expansion into new markets, and strategic partnerships with fitness and wellness companies. Additionally, the rise of voice-activated devices and smart speakers is boosting demand for Deezer's audio content, contributing to the 7% growth.

7. Detailed Products

Deezer Premium

A subscription-based music streaming service that provides ad-free listening, offline playback, and improved audio quality.

Deezer Family

A family plan that allows up to 6 users to access Deezer Premium features, with individual profiles and playlists.

Deezer Student

A discounted subscription plan for students, offering Deezer Premium features at a lower price.

Deezer Free

A free, ad-supported music streaming service with limited features and lower audio quality.

Deezer for Business

A B2B music streaming solution for businesses, providing background music for commercial use.

Deezer API

A developer platform that provides access to Deezer's music catalog and features for building custom music applications.

8. Deezer S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Deezer faces moderate threat from substitutes as users can switch to free or low-cost alternatives like YouTube Music, SoundCloud, or podcasts.

Bargaining Power Of Customers

Deezer's customers have low bargaining power due to the company's large user base and the lack of individual customer influence.

Bargaining Power Of Suppliers

Deezer's suppliers, such as music labels and artists, have moderate bargaining power due to the company's dependence on their content.

Threat Of New Entrants

The threat of new entrants is high in the music streaming industry, as new companies can easily enter the market with innovative features and low costs.

Intensity Of Rivalry

The intensity of rivalry in the music streaming industry is high, with companies like Spotify, Apple Music, and Amazon Music competing fiercely for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	-12.23%
Debt Cost	3.95%
Equity Weight	112.23%
Equity Cost	0.41%
WACC	-0.03%
Leverage	-10.90%

11. Quality Control: Deezer S.A. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Borussia Dortmund

A-Score: 5.3/10

Value: 7.0

Growth: 6.6

Quality: 5.6

Yield: 1.2

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

Cyfrowy Polsat

A-Score: 5.3/10

Value: 8.4

Growth: 4.9

Quality: 3.4

Yield: 2.5

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

Kinepolis

A-Score: 4.4/10

Value: 5.3

Growth: 6.0

Quality: 4.5

Yield: 1.2

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

Deezer

A-Score: 4.2/10

Value: 8.5

Growth: 5.8

Quality: 2.9

Yield: 0.0

Momentum: 5.5

Volatility: 2.3

1-Year Total Return ->

AFC Ajax

A-Score: 4.0/10

Value: 7.2

Growth: 2.2

Quality: 2.1

Yield: 0.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

Gaumont

A-Score: 3.3/10

Value: 7.2

Growth: 1.8

Quality: 3.5

Yield: 0.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-11.14%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

-0.03%

Deezer S.A. - FR001400AYG6

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DEEZR

1.c. Company Highlights

Cheaper

Lower Yield

Medium Volatility

More Volatile

Average Yield

Revenues Beats

Average Quality

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.33%)

6. Segments

Direct

Expected Growth: 10%

Partnerships

Expected Growth: 8%

Other

Expected Growth: 7%

7. Detailed Products

Deezer Premium

Deezer Family

Deezer Student

Deezer Free

Deezer for Business

Deezer API

8. Deezer S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Deezer S.A. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.03$

Current Price

1.02$

Potential

0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA