Intrinsic Value Piscines Desjoyaux S.A. (ALPDX.PA)

• Previous Close: €13.45
• Intrinsic Value: €8.67
• Upside potential: -36%

Stock Valuation Context

Business Model And Market Position

Piscines Desjoyaux SA operates in the leisure sector, specializing in the design, manufacturing, and marketing of swimming pools and related products. The company serves both residential and commercial markets, offering a comprehensive range of solutions, including public pools, paving, and pool accessories like solar covers and safety barriers. Its vertically integrated model allows for control over production, distribution, and installation, enhancing efficiency and customer satisfaction. As a subsidiary of Desjoyaux Finance SAS, the company benefits from stable ownership and strategic oversight. Operating primarily in France, Piscines Desjoyaux has established a strong regional presence, leveraging its long-standing reputation since its founding in 1966. The company’s focus on innovation and quality positions it as a trusted player in the competitive swimming pool industry, catering to both private and public clients. Its diversified revenue streams, including property management, provide additional stability amid seasonal demand fluctuations in the leisure sector.

Revenue Profitability And Efficiency

Piscines Desjoyaux reported revenue of €115.7 million for FY 2024, with net income of €11.0 million, reflecting a net margin of approximately 9.5%. The company generated €14.8 million in operating cash flow, demonstrating solid cash conversion. Capital expenditures of €15.7 million indicate ongoing investments in production and infrastructure, aligning with its growth strategy. The balance between revenue and profitability suggests efficient cost management despite sector-specific challenges.

Earnings Power And Capital Efficiency

The company’s diluted EPS of €1.22 underscores its earnings capability, supported by a stable operational framework. With a market capitalization of €118.0 million, Piscines Desjoyaux maintains a moderate valuation relative to earnings. The positive operating cash flow highlights effective capital deployment, though higher capital expenditures may pressure short-term liquidity. The firm’s ability to sustain profitability in a cyclical industry reflects resilient demand for its niche offerings.

Balance Sheet And Financial Health

Piscines Desjoyaux holds €63.5 million in cash and equivalents, providing liquidity against €35.9 million in total debt. This conservative leverage ratio indicates a strong financial position, with ample capacity to meet obligations and fund growth. The company’s asset-light model and prudent financial management mitigate risks associated with seasonal revenue volatility, ensuring long-term stability.

Growth Trends And Dividend Policy

The company’s growth is tied to the leisure sector’s cyclicality, with potential upside from property management diversification. A dividend of €1.00 per share reflects a commitment to shareholder returns, supported by consistent earnings. Future expansion may hinge on geographic diversification or product innovation to offset market saturation in its core regions.

Valuation And Market Expectations

Trading at a market cap of €118.0 million, Piscines Desjoyaux is valued at approximately 1.0x revenue, aligning with niche leisure peers. A beta of 1.283 suggests moderate sensitivity to broader market movements. Investors likely price in steady demand for premium pool solutions, balanced against sector-specific risks such as discretionary spending fluctuations.

Strategic Advantages And Outlook

Piscines Desjoyaux’s integrated business model and strong brand equity provide competitive advantages in a fragmented market. The company’s focus on quality and innovation positions it well for sustained demand, though macroeconomic headwinds could impact discretionary spending. Strategic investments in production and diversification may drive future growth, reinforcing its market leadership in France’s swimming pool industry.

Sources

Company filings, market data