Stock Analysis & Valuation Guerbet S.A. (0ELV.L)

• Previous Close: £13.64
• Sector Valuation Confidence Level: High

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	15.90	17
Intrinsic value (DCF)	10.76	-21
Graham-Dodd Method	24.50	80
Graham Formula	15.40	13

Strategic Investment Analysis

Company Overview

Guerbet SA is a leading French healthcare company specializing in contrast media products, medical devices, and digital solutions for diagnostic and interventional imaging. Founded in 1926 and headquartered in Villepinte, France, Guerbet operates in the Medical Equipment & Services sector, providing innovative solutions for MRI, CT, and interventional radiology. The company’s flagship products include Optiray and Xenetix (iodinated contrast agents), Dotarem (gadolinium-based MRI contrast agent), and Lipiodol (used in chemoembolization). Guerbet also offers AI-driven digital solutions like icobrain for neurological imaging analysis and Contrast&Care for injection management. With a strong focus on radiology and urology, Guerbet serves healthcare professionals worldwide, combining pharmaceutical expertise with cutting-edge medical technology. The company’s €247.5M market cap reflects its niche leadership in contrast media, though it faces competition from larger multinational players. Guerbet’s diversified portfolio, including prefilled syringes and interventional radiology devices, positions it as a key innovator in diagnostic imaging.

Investment Summary

Guerbet SA presents a mixed investment case. The company operates in a specialized niche with steady demand for contrast media and imaging solutions, supported by its €841M revenue (FY 2024). However, its thin net income (€16.1M) and high total debt (€392M) raise concerns about financial leverage. The diluted EPS of €1.28 and €0.5 dividend per share indicate modest profitability. Guerbet’s beta of 0.807 suggests lower volatility than the broader market, appealing to conservative investors. The company’s innovation in AI-driven imaging tools (e.g., icobrain) and interventional radiology devices could drive growth, but competition from giants like Bayer and GE Healthcare poses risks. Operating cash flow (€60.7M) barely covers capital expenditures (€-57M), limiting flexibility. Investors should weigh Guerbet’s niche expertise against its financial constraints and sector competition.

Competitive Analysis

Guerbet SA holds a unique position as a specialized player in contrast media and imaging solutions, differentiating itself through innovation in gadolinium-based agents (Dotarem) and interventional radiology products (Lipiodol). Its AI-driven icobrain platform provides a technological edge in neurological imaging analysis. However, the company faces intense competition from larger, diversified healthcare conglomerates with greater R&D budgets and global distribution networks. Guerbet’s focus on radiology-specific solutions allows for deep customer relationships but limits economies of scale. The company’s €392M debt load is a concern compared to peers, potentially restricting investment in new product development. Its strength lies in high-margin niche products like Dotarem, which holds a strong position in the MRI contrast market. However, pricing pressure from generics and biosimilars in the contrast media space could erode margins. Guerbet’s digital solutions (e.g., Contrast&Care) are a growth driver but compete with integrated offerings from Siemens Healthineers and Philips. The company’s European base provides regional stability but may limit growth in faster-growing APAC markets where rivals have stronger footholds.

Major Competitors

• Bayer AG (BAYN.DE): Bayer’s radiology division (including contrast media like Gadovist) competes directly with Guerbet’s Dotarem. Bayer’s scale and vertical integration give it cost advantages, but Guerbet’s specialized focus allows for more tailored solutions. Bayer’s recent legal challenges in other divisions may distract from imaging investments.
• GE HealthCare Technologies Inc. (GEHC): GE HealthCare offers end-to-end imaging solutions, including contrast agents like Omniscan. Its strength lies in bundled equipment-and-media sales, which Guerbet cannot match. However, Guerbet’s pure-play focus on contrast media allows for deeper product expertise and faster innovation cycles in niche applications.
• Siemens Healthineers AG (SHL.DE): Siemens Healthineers competes with Guerbet in MRI contrast agents (e.g., Gadovist) and AI imaging analytics. Siemens’ integrated hardware-software platforms are a key advantage, but Guerbet’s third-party agnostic solutions (e.g., icobrain) appeal to multi-vendor hospital environments.
• Koninklijke Philips NV (PHG): Philips competes in contrast-enhanced imaging systems and informatics solutions. Its strength in hospital-wide workflow integration overshadows Guerbet’s offerings, though Guerbet’s Lipiodol remains a leader in interventional radiology—a segment where Philips has less focus.
• Bracco Imaging SpA (BRCO): Bracco is Guerbet’s closest pure-play competitor in contrast media, with products like MultiHance (gadolinium-based). Bracco’s stronger presence in the US market and partnership with ACIST for injection systems give it an edge, but Guerbet leads in certain European markets and AI-driven diagnostics.