Intrinsic Value Gérard Perrier Industrie S.A. (PERR.PA)

• Previous Close: €86.40
• Intrinsic Value: €38.60
• Upside potential: -55%

Stock Valuation Context

Business Model And Market Position

Gérard Perrier Industrie S.A. operates as a specialized industrial solutions provider in the electrical, electronic, and automation sectors, serving diverse industries including oil and gas, nuclear, and military. The company generates revenue through engineering, manufacturing, and maintenance services for high- and low-voltage distribution networks, automation systems, and electronic sub-assemblies. Its integrated approach—combining design, installation, and technical support—positions it as a critical partner for complex industrial projects. With a strong presence in France and selective international operations, the company leverages its expertise in niche applications such as on-board systems and automation supervision. Its subsidiary structure under Amperra SAS provides strategic stability, while its focus on high-value technical assistance and customized solutions differentiates it from broader competitors in the electrical equipment sector. The company’s involvement in defense and energy infrastructure underscores its role in mission-critical applications, reinforcing long-term client relationships and recurring maintenance revenue streams.

Revenue Profitability And Efficiency

In FY 2024, Gérard Perrier reported revenue of €319.5 million, with net income of €19.3 million, reflecting a net margin of approximately 6%. Operating cash flow stood at €19.8 million, though capital expenditures of €8.9 million indicate ongoing investments in operational capabilities. The company’s moderate profitability aligns with its project-based revenue model and technical service focus.

Earnings Power And Capital Efficiency

Diluted EPS of €5.11 demonstrates steady earnings generation, supported by a capital-light service and maintenance segment. The company’s beta of 0.651 suggests lower volatility relative to the market, likely due to its stable industrial client base and recurring revenue from maintenance contracts.

Balance Sheet And Financial Health

The balance sheet remains robust, with €54.8 million in cash and equivalents against €37.8 million in total debt, indicating a conservative leverage profile. This liquidity position supports flexibility for strategic investments or dividend commitments.

Growth Trends And Dividend Policy

Growth is likely tied to industrial demand cycles, with a dividend payout of €2.3 per share signaling a commitment to shareholder returns. The company’s focus on high-margin automation and nuclear sectors may drive incremental revenue expansion.

Valuation And Market Expectations

At a market cap of €294.9 million, the company trades at a P/E of approximately 15.3x, reflecting investor confidence in its niche expertise and stable cash flows. The valuation aligns with industrials peers, though its specialized services may warrant a premium.

Strategic Advantages And Outlook

Gérard Perrier’s technical specialization and entrenched position in critical infrastructure projects provide resilience against broader economic downturns. The outlook remains stable, supported by long-term contracts and France’s emphasis on energy and defense modernization.

Sources

Company filings, Euronext Paris disclosures