The year 2022 is not easy for listed French companies stock Exchange. Between shortages, inflation, change in monetary policy and the prospect of an impending recession, investors lack visibility. This is felt on 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 market value since the beginning of the year. Café de la Bourse focuses on 3 of these actions in this article.
Stocks Fnac Darty
Fnac Darty shares have fallen 51% since the start of 2022. This is one of the worst performances of the SBF 120.
Fnac Darty is the French leader in the distribution of cultural and leisure products. Its shelves include books, toys, game consoles, phones, computers, tablets, televisions, cameras and appliances, among other products.
The business is carried out through a network of over 950 stores and through the group’s website. The company also offers tickets to shows and travels through its own subsidiary company Travel Fnac. The turnover of Fnac Darty is generated mainly in France and Switzerland (83.3%), as well as in Spain and Benelux.
Like many companies, Fnac Darty is affected by inflationary pressures and uncertainties about the global geopolitical situation, which significantly affect the company’s predictability in the coming months.
Investors should indeed pay attention, because as a distributor, Fnac Darty should undergo changes in the consumption of its customers. The latter will certainly adapt their consumption habits to cope with theinflation at a gallop that erodes 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 actually facing big problems in theirs supply chains from Covid-19 which often lead to shortages of stocks and delays in deliveries.
Fnac Darty share price
Derichebourg’s 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 domestic waste and the depollution and recycling of end-of-life capital goods.
The group also offers reception services, cleaning, temporary work and recruitment, as well as remote monitoring. The Derichebourg group carries out its sales in Europe, mainly in France (68.6% of sales).
Derichebourg’s share fell this year following the change in the market environment in which the company operates. Some commodities are experiencing a sharp correction, especially spreads, which have recently seen a sharp decline.
Industrial companies such as Derichebourg are also under threat from energy crisis with risks of decelerating their growth in 2023, or even recession. Therefore, the demand from industrial companies could decrease and affect Derichebourg’s turnover.
Derichebourg share price
Korian shares have fallen by 63% since the beginning of 2022.
Korian is the leading European private operator of comprehensive care facilities for dependent people. The group generates 50.7% of its turnover in France through the management of 571 facilities at the end of 2021, including retirement homes, but also nursing and psychiatric clinics. In addition, the Korian group operates 120 plants in Belgium, 99 plants in Italy, 55 plants in Germany, 49 plants in Spain, 43 plants in the Netherlands and 6 plants 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 results of a three-year investigation to denounce the conditions of mistreatment of residents in nursing homes.
As soon as this book was published, investors who previously glorified this profitable model very quickly turned around and fled the stock market values of EHPAD become short-term and pariah stocks on the stock market. Check out ours Analysis of Orpea shares to know more.
Korian share price
In addition to the Fnac Darty, Derichebourg and Korian shares, other stocks have been massacred on the stock exchange since January 1, 2022. We think in particular of the Orpea stock, which currently loses 87% of the Valnevawhich lost 79%, to the Atos title, which lost 78%, as well as to the title Elior and Faurecia, who each lost 71%.
Image source: Freepik
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