(MMB) Lagardere SCA - Ratings and Ratios

Lagardère SA is a French multinational with a storied history dating back to 1826. The company operates in two core segments: publishing and travel retail. Its publishing division is a global player in book publishing, e-publishing, and related content distribution, spanning education, general literature, and entertainment. This includes mobile and board games, stationery, and a robust distribution network in English, French, and Spanish markets.

The travel retail division is equally significant, operating in high-traffic transit areas like airports and train stations. Under brands like Relay, Hubiz, and Aelia Duty Free, the company sells travel essentials, duty-free goods, fashion, and food services. It also partners with global franchises such as Nespresso, Costa Coffee, and Burger King, leveraging its strategic locations to capture traveler spending. This division’s success is deeply tied to global tourism trends and the recovery of international travel post-pandemic.

As of late 2023, Lagardère SA is a subsidiary of Vivendi SE, a media conglomerate with significant influence in entertainment and content. The company’s market cap is approximately €2.8 billion, with a trailing P/E of 39.31 and a forward P/E of 10.95, suggesting investor expectations of future earnings growth. Its price-to-book ratio of 3.68 indicates a premium valuation relative to its book value, while the price-to-sales ratio of 0.33 points to moderate revenue multiples.

Investors should note the company’s dual exposure to both the cyclical travel retail industry and the more stable publishing sector. This diversification can mitigate risks but also ties performance to broader economic and consumer trends. The stock is listed on Euronext Paris under the ticker MMB, classified under the Hotels, Resorts & Cruise Lines sub-industry, though its operations extend beyond traditional hospitality.