Deep Value: cash covers more than 100% of the stock price

This company holds roughly $94M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Solocal Group S.A.

LOCAL.PA

Advertising Agencies · Communication Services

Price

€4.09

+0.03 (+0.74%)

Market Cap

€55.9M

Exchange

Euronext Paris

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Good

Cash Flow

Strong

Stability

Mixed

Valuation

Good

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Share count falling — buybacks

−72.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 130.1M (2021) → 35.9M (2025)

Winston Score History

The full picture

Solocal Group is a French digital advertising company that helps small and medium-sized businesses get found online. Its main products include local search directories, websites, and digital marketing services sold to local businesses like restaurants, plumbers, and retailers across France. The company owns PagesJaunes, which is the French equivalent of the Yellow Pages and one of the most recognized business directory brands in the country.

Solocal makes money by charging businesses subscription fees for listings, website creation, and online advertising placements. It operates almost entirely in France, making it a domestically focused business with limited geographic diversification. The PagesJaunes brand gives it name recognition, but the company faces serious pressure from larger global platforms like Google, which offer similar local search and advertising tools often at lower cost or for free. Solocal's main challenge is convincing small businesses to keep paying for its services when free alternatives are widely available.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+82.2% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+461.9% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

€0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

0.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€81M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Solocal Group S.A. grew revenue 82% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

10.3%

Thin — 10.3% gross margin

Profit after running costs

Operating Margin

10.3%

Modest — 10.3% operating margin

Return on the money invested

ROCE

37.7%

Exceptional — 37.7% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+10.6%

Steady sales growth (+10.6% YoY)

Profit growth

EPS YoY

-81.9%

Earnings shrinking (-81.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

158%

Turns 158% of profit into real cash

Spare cash per sale

FCF Margin

7.7%

Modest free cash flow (7.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

—

Data not available

Covers its interest

Interest Cover

8.17x

Comfortably covers interest (8.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

4.0x

Attractive valuation — P/E 4.0

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-1.5

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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