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Is Lagardere (ENXTPA:MMB) Cheap On Its €500 Million Bond Refinance?

Simply Wall St · 2d ago

Lagardere (ENXTPA:MMB) is back in focus after the group placed a €500 million, 6-year bond at a 5.25% coupon, aimed at refinancing existing bank and Vivendi debt.

The bond comes as Lagardere’s share price has been easing, with a 30-day share price return down 7.21% and the year-to-date share price return down 5.13%, while the 1-year total shareholder return has declined 8.16%. This suggests recent refinancing steps have so far been met with cautious rather than momentum-driven trading.

Compare Lagardere’s refinancing move with other companies reshaping their balance sheets by scanning our hand-picked list of solid balance sheet and fundamentals (195 results) for potential ideas.

Lagardere has just locked in fresh funding while the share price has slipped and the stock screens on a steep intrinsic discount. Does that mix still tilt the risk reward toward buyers at today’s level?

Most Popular Narrative: 35% Undervalued

The most followed valuation story on Lagardere puts fair value at about €27.17, well above the last close at €17.76. This frames the new bond issue against a market that already prices in a sizeable discount.

The ongoing rise in global air travel, especially in European markets and with new strategic travel retail concessions (notably at Amsterdam Schiphol, Auckland, and Singapore Cruise Terminal), is expected to steadily increase passenger traffic and sales opportunities for Lagardère's Travel Retail division, boosting top-line revenue growth through 2025 and delivering incremental EBITDA gains as new operations ramp up. A growing consumer focus on higher-quality, convenient travel retail offerings and premium product mixes positions Lagardère to capture higher-margin sales at travel hubs, supporting both revenue expansion and margin improvement as seen in the positive initial results from new duty-free operations.

See why 1 investors see Lagardere as 35% undervalued.

Result: Fair Value of €27.17 (UNDERVALUED)

Still, the Lagardere story can change quickly if regional travel retail weakness deepens or if high debt keeps squeezing flexibility just as trading conditions tighten.

Find out about the key risks to this Lagardere narrative.

Next Steps

Sentiment around Lagardere is mixed right now, with clear worries on one side and genuine upside arguments on the other. Check the data yourself and weigh the 1 key reward and 4 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.