Intrinsic Value Altamir SCA (LTA.PA)

• Previous Close: €29.60
• Intrinsic Value: €23.16
• Upside potential: -22%

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 and mid-cap companies across Europe, North America, and 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 selective exposure to high-growth regions like China and India, Altamir combines regional specialization with global diversification. Its healthcare focus includes niche pharmaceutical labs, medical devices, and health services, reflecting a preference for resilient, high-potential sub-sectors. The firm’s dual approach—direct investments and fund participation—enhances its ability to capitalize on market opportunities while mitigating risk through diversified exposure.

Revenue Profitability And Efficiency

Altamir reported revenue of €72.7 million and net income of €18.8 million, with diluted EPS of €0.51, reflecting steady profitability. Operating cash flow stood at €61.5 million, indicating efficient capital deployment. The absence of capital expenditures suggests a lean operational model focused on financial investments rather than physical assets, aligning with its private equity mandate.

Earnings Power And Capital Efficiency

The firm’s earnings power is driven by its diversified portfolio and strategic exits, with a focus on mid-market buyouts. Capital efficiency is evident in its ability to generate substantial operating cash flow relative to revenue, though the €238.5 million total debt highlights leverage used to amplify returns. Its €35.2 million cash reserve provides liquidity for opportunistic investments.

Balance Sheet And Financial Health

Altamir maintains a balanced sheet with €35.2 million in cash and equivalents against €238.5 million in total debt, suggesting moderate leverage. The firm’s €1.04 billion market cap reflects investor confidence in its asset management capabilities. Its debt structure appears manageable, supported by consistent cash flow generation and a focus on liquid investments.

Growth Trends And Dividend Policy

Altamir’s growth is tied to its ability to identify and exit high-potential investments, with a dividend payout of €1.08 per share underscoring its commitment to shareholder returns. The firm’s focus on emerging markets and digital sectors positions it for long-term growth, though its performance remains cyclical, dependent on private equity market conditions.

Valuation And Market Expectations

Trading at a market cap of €1.04 billion, Altamir’s valuation reflects its niche expertise and Apax Partners affiliation. The low beta of 0.44 suggests relative insulation from broader market volatility, though its performance hinges on private equity deal flow and exit multiples. Investors likely price in steady returns from its diversified portfolio and disciplined investment approach.

Strategic Advantages And Outlook

Altamir’s strategic edge lies in its partnership with Apax Partners, granting access to high-quality deal flow and sector expertise. Its focus on healthcare and digital sectors aligns with long-term growth trends. While macroeconomic headwinds may impact fundraising and exits, the firm’s regional diversification and mid-market focus provide resilience. The outlook remains cautiously optimistic, contingent on execution in a competitive private equity landscape.

Sources

Company description, financial data from public filings, and market metrics from Euronext Paris.