The year 2022 is not easy for French companies listed on the stock exchange. Between shortages, inflation, change in monetary policy and the prospect of a coming recession, investors lack visibility. This is felt in the markets, which are increasingly volatile. In addition, the prices of many companies are falling sharply. Some SBF 120 companies have also fallen very low and have lost more than 50% of their stock market value since the start of the year. Café de la Bourse focuses on 3 of these actions in this article.
Fnac Darty shares
Fnac Darty shares have fallen 51% since the start of 2022. This is one of the worst performances in the SBF 120.
Fnac Darty is the French leader in the distribution of cultural and leisure products. Its shelves include books, toys, game consoles, telephones, computers, tablets, televisions, cameras and household appliances, among other products.
The activity is carried out through a network of more than 950 stores and through the group’s website. The company also offers show tickets and trips through its subsidiary company Fnac Voyages. Fnac Darty’s turnover is generated mainly in France and Switzerland (83.3%), as well as in Spain and Benelux.
Like many companies, Fnac Darty is impacted by inflationary pressures and uncertainties about the global geopolitical situation, which greatly affects the predictability of the company’s activity over the coming months.
Investors should indeed exercise caution, because as a distributor, Fnac Darty would have to undergo changes in the consumption of its customers. The latter will certainly adapt their consumption habits to cope with galloping inflation which is eating into their purchasing power. This is even more true when these expenses are considered non-essential.
On the other hand, the time of shortages is not over, especially in electronics. Many companies are indeed facing significant problems in their supply chains since Covid-19 which often lead to stock shortages and delays in deliveries.
Fnac Darty share price
Action Derichebourg
Derichebourg shares have fallen by more than 60% since the start of 2022.
Derichebourg is a specialist in business and community services. The group’s activities mainly consist of the collection and recycling of ferrous and non-ferrous metals, the management of industrial and household waste and the depollution and recycling of end-of-life capital goods.
The group also offers reception, cleaning, temporary work and recruitment services, as well as remote monitoring. The Derichebourg group generates its sales in Europe, mainly in France (68.6% of sales).
The Derichebourg share fell this year following a change in the market context in which the company operates. Some raw materials are showing a sharp correction, particularly scrap, which has seen a sharp drop lately.
Industrial companies like Derichebourg are also threatened by the energy crisis with the risk of their growth decelerating in 2023, or even of recession. Thus, demand from industrial companies could decline and impact Derichebourg’s turnover.
Derichebourg share price
Korian stock
Korian shares have fallen 63% since the start of 2022.
Korian is Europe’s leading private operator of comprehensive care facilities for dependent persons. The group generates 50.7% of its turnover in France through the operation of 571 establishments at the end of 2021, including retirement homes, but also care clinics and psychiatric clinics. In addition, the Korian group operates 120 establishments in Belgium, 99 establishments in Italy, 55 establishments in Germany, 49 establishments in Spain, 43 establishments in the Netherlands and 6 establishments in the United Kingdom.
Korian was a collateral victim of the scandal surrounding its competitor Orpea. The latter was violently attacked in the book “Les Fossoyeurs” which recounts the findings of a three-year investigation denouncing the conditions of ill-treatment of residents in nursing homes.
As soon as this book was published, investors who had previously glorified this lucrative model quickly turned around and fled the stock market values of EHPADs, which had become short-lived securities and pariahs on the stock market. Consult our analysis of the Orpea share to find out more.
Korian share price
In addition to Fnac Darty, Derichebourg and Korian shares, other stocks have been massacred on the stock market since January 1, 2022. We will think in particular of the Orpea share, which is currently losing 87%, of the Valneva share, which is losing 79% %, to the Atos share, which lost 78%, as well as to the Elior and Faurecia shares, which each lost 71%.
Image source: Freepik
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