Intrinsic Value Umanis S.A. (ALUMS.PA)

• Previous Close: €17.15
• Intrinsic Value: n/a
• Upside potential: n/a%

Stock Valuation Context

Business Model And Market Position

Umanis SA is a France-based digital services company specializing in big data, artificial intelligence, and business integration solutions. The company operates in the Information Technology Services sector, offering a diverse portfolio including data strategy, smart analytics, digital experience platforms, and infrastructure services. Its clientele spans multiple industries such as healthcare, energy, retail, and public sectors, leveraging tailored IT consulting and technical expertise to drive digital transformation. Umanis differentiates itself through a strong focus on GDPR compliance, DevOps, and CRM solutions, positioning it as a trusted partner for enterprises navigating complex regulatory and technological landscapes. The company’s acquisition by CGI France SAS in 2022 further bolsters its market presence, integrating its capabilities into a larger IT services ecosystem while retaining its specialized service offerings. This strategic alignment enhances Umanis’ competitive edge in the French digital services market, where demand for AI-driven and cloud-based solutions continues to grow.

Revenue Profitability And Efficiency

In FY 2021, Umanis reported revenue of €246.0 million, with net income of €12.2 million, reflecting a net margin of approximately 5.0%. The company generated €26.9 million in operating cash flow, demonstrating solid cash conversion efficiency. Capital expenditures were modest at €1.1 million, indicating a capital-light operational model focused on service delivery rather than heavy infrastructure investment.

Earnings Power And Capital Efficiency

Umanis delivered diluted EPS of €0.66, supported by its diversified service offerings and stable client demand. The company’s capital efficiency is evident in its ability to maintain profitability while investing in high-growth areas like AI and big data, though its debt-to-equity ratio suggests moderate leverage to support expansion.

Balance Sheet And Financial Health

Umanis held €30.4 million in cash and equivalents against total debt of €65.7 million, reflecting a manageable liquidity position. The balance sheet indicates a disciplined approach to financing, with no significant near-term refinancing risks. The company’s financial health is further supported by consistent operating cash flows.

Growth Trends And Dividend Policy

Umanis has demonstrated steady revenue growth, driven by demand for digital transformation services. The company paid a dividend of €0.26 per share, signaling a commitment to shareholder returns despite its growth-oriented strategy. Future expansion is likely to be influenced by its integration into CGI’s broader IT services platform.

Valuation And Market Expectations

With a beta of 0.86, Umanis exhibits lower volatility relative to the broader market, appealing to risk-averse investors. The lack of disclosed market cap post-acquisition limits current valuation analysis, but its historical performance suggests a stable earnings profile in the IT services sector.

Strategic Advantages And Outlook

Umanis benefits from its niche expertise in AI and data governance, complemented by CGI’s global reach. The outlook remains positive as digital transformation trends persist, though integration risks and competitive pressures in the IT services sector warrant monitoring. The company’s focus on high-value consulting and compliance solutions positions it well for sustained demand.

Sources

Company filings, Euronext Paris disclosures