Stock Analysis & Valuation Groupe Guillin S.A. (0D1X.L)

• Previous Close: £25.15
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	28.80	15
Intrinsic value (DCF)	10.23	-59
Graham-Dodd Method	22.00	-13
Graham Formula	18.80	-25

Strategic Investment Analysis

Company Overview

Groupe Guillin S.A. is a leading French producer of food packaging solutions, serving supermarkets, hypermarkets, commercial catering, and industrial food sectors. Founded in 1972 and headquartered in Ornans, France, the company specializes in a diverse range of packaging products, including bags, trays, containers, and sealing machines. With a strong presence in France and international markets, Groupe Guillin caters to retail, food industries, and meal distribution services. The company’s product portfolio includes eco-friendly solutions like cardboard molds and baking paper, aligning with sustainability trends in the packaging industry. Listed on the London Stock Exchange, Groupe Guillin combines innovation with operational efficiency, making it a key player in the consumer cyclical sector. Its focus on high-quality, functional packaging positions it well in the competitive food packaging and containers market.

Investment Summary

Groupe Guillin presents a stable investment opportunity with a market capitalization of €540.8 million and a beta of 0.818, indicating lower volatility compared to the broader market. The company reported solid FY revenue of €869.7 million and net income of €59.7 million, with diluted EPS of €3.23. Its operating cash flow of €93.7 million supports a healthy dividend payout of €1.1 per share. However, capital expenditures of €80.4 million suggest ongoing investments in production capabilities. While the company benefits from a diversified product line and strong industry positioning, investors should monitor raw material costs and competitive pressures in the packaging sector. Its moderate debt level (€118.5 million) and cash reserves (€78.7 million) provide financial flexibility.

Competitive Analysis

Groupe Guillin operates in the highly competitive food packaging industry, where differentiation is driven by product innovation, sustainability, and cost efficiency. The company’s competitive advantage lies in its broad product portfolio, serving multiple segments from retail to industrial catering. Its integration of sealing and labeling equipment adds value for clients seeking turnkey packaging solutions. However, the industry faces pricing pressures from large multinational players and private-label manufacturers. Groupe Guillin’s focus on the French and European markets provides regional strength but limits global diversification compared to larger rivals. Its ability to offer specialized packaging, such as isothermal meal distribution products, gives it an edge in niche segments. Sustainability initiatives, including recyclable and compostable packaging, align with regulatory trends but require continuous R&D investment. The company’s mid-market positioning balances quality and affordability, though it must compete with low-cost producers in Asia and vertically integrated giants.

Major Competitors

• Amcor plc (AMCR): Amcor is a global leader in packaging solutions with a strong presence in flexible and rigid packaging. Its scale and R&D capabilities allow for innovation in sustainable packaging, but its broad focus may dilute specialization in food packaging compared to Groupe Guillin. Amcor’s extensive geographic reach provides diversification but exposes it to currency risks.
• Ball Corporation (BLL): Ball Corporation specializes in aluminum packaging, including beverage cans, which differs from Groupe Guillin’s focus on food containers. Its strength lies in lightweight, recyclable materials, but it lacks Guillin’s diversified product range for catering and retail. Ball’s global footprint offers resilience but less focus on European markets.
• DS Smith Plc (DSM.AS): DS Smith is a leader in sustainable corrugated and plastic packaging, with a strong emphasis on circular economy solutions. Its expertise in cardboard-based packaging competes with Guillin’s offerings, but DS Smith’s larger scale may provide cost advantages. However, it has less specialization in foodservice packaging compared to Guillin.
• Signify N.V. (SIG): Signify (formerly part of Philips) focuses on lighting solutions and is not a direct competitor. This entry appears to be an error; no direct competitive overlap with Groupe Guillin exists.
• Tetra Pak International S.A. (TVNDY): Tetra Pak dominates the liquid food packaging sector with its aseptic carton technology. While it competes indirectly in food packaging, its focus on beverages and dairy differs from Guillin’s meal distribution products. Tetra Pak’s innovation in shelf-stable packaging is unmatched, but it lacks Guillin’s catering equipment offerings.