Intrinsic Value Altamir SCA (0N5Z.L)

• Previous Close: £29.24
• Intrinsic Value: £21.90
• Upside potential: -25%

Stock Valuation Context

Business Model And Market Position

Altamir SCA is a Paris-based private equity firm specializing in direct and fund-of-fund investments, primarily targeting small to mid-cap companies across Europe, North America, and select emerging markets. The firm operates in sectors such as healthcare, TMT, digital companies, retail, and business services, focusing on middle-market buyouts and growth capital. Its investment strategy emphasizes underdeveloped divisions of larger corporations, with enterprise values ranging from €50 million to €3 billion. Altamir collaborates closely with Apax Partners France and Amboise Investissement, leveraging their expertise to secure majority or lead shareholder positions. The firm targets exits within five years, balancing direct investments with fund allocations to optimize returns. With a strong foothold in French-speaking Europe and a disciplined sector focus, Altamir maintains a competitive edge in identifying high-growth opportunities in niche markets like healthcare services, medical devices, and digital transformation.

Revenue Profitability And Efficiency

Altamir reported revenue of €72.7 million and net income of €18.8 million, reflecting a disciplined investment approach. The firm's operating cash flow of €61.5 million underscores efficient capital deployment, with no significant capital expenditures noted. Its profitability metrics, including diluted EPS of €0.51, highlight steady earnings generation despite market volatility.

Earnings Power And Capital Efficiency

The firm’s ability to generate €18.8 million in net income from its diversified portfolio demonstrates robust earnings power. With a focus on mid-market buyouts and growth capital, Altamir maintains capital efficiency by targeting strategic exits and leveraging Apax Partners' expertise to enhance returns.

Balance Sheet And Financial Health

Altamir’s balance sheet shows €35.2 million in cash and equivalents against total debt of €238.5 million, indicating moderate leverage. The absence of dividends suggests reinvestment priorities, while its €1.03 billion market cap reflects investor confidence in its long-term strategy.

Growth Trends And Dividend Policy

Altamir’s growth is driven by its focus on high-potential sectors and geographies, with no current dividend distribution. The firm’s reinvestment strategy aligns with its goal of capital appreciation, targeting exits within five years to compound returns.

Valuation And Market Expectations

Trading at a market cap of €1.03 billion, Altamir’s valuation reflects its niche positioning in private equity. A beta of 0.416 suggests lower volatility relative to broader markets, appealing to risk-averse investors seeking exposure to alternative assets.

Strategic Advantages And Outlook

Altamir’s partnership with Apax Partners and sector-specific focus provide strategic advantages in sourcing deals. The firm’s outlook remains positive, supported by its disciplined investment framework and exposure to resilient sectors like healthcare and digital services.

Sources

Company description, financial data from public filings