| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 37.10 | 20 |
| Intrinsic value (DCF) | 15.71 | -49 |
| Graham-Dodd Method | 34.50 | 12 |
| Graham Formula | 25.00 | -19 |
Synergie SE is a leading European human resources management and development company, specializing in temporary employment, recruitment, outplacement, social engineering, consultancy, and training services. Headquartered in Paris, France, Synergie operates across 17 countries through a network of 770 agencies, serving diverse sectors such as naval and renewable energy, transport and logistics, construction, healthcare, agri-food, IT, and communications. Founded in 1969, the company has established a strong presence in France, Belgium, Northern and Eastern Europe, Italy, Spain, Portugal, Canada, and Australia. Synergie SE is listed on the London Stock Exchange (LSE) and is part of the Specialty Business Services industry within the Industrials sector. With a market capitalization of approximately €758.7 million, Synergie leverages its extensive geographic footprint and sector-specific expertise to provide tailored workforce solutions, making it a key player in the HR services market.
Synergie SE presents a stable investment opportunity with a diversified geographic and sectoral presence, reducing reliance on any single market. The company's revenue of €3.18 billion and net income of €63.1 million in the latest fiscal year reflect its operational strength. A beta of 0.932 suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, the absence of dividends may deter income-focused investors. Synergie's strong cash position (€401 million) and manageable total debt (€112.3 million) provide financial flexibility. The company's focus on high-growth sectors like renewable energy and IT positions it well for future demand, though competition in the HR services industry remains intense.
Synergie SE competes in the highly fragmented HR services industry, where differentiation is often achieved through geographic reach, sector specialization, and service quality. The company's competitive advantage lies in its extensive network of 770 agencies across 17 countries, enabling localized service delivery. Its focus on niche sectors like renewable energy and IT provides specialized expertise that generalist competitors may lack. Synergie's strong cash reserves and low debt levels afford it financial stability, allowing for potential strategic acquisitions or organic expansion. However, the company faces stiff competition from larger global players with greater resources and digital HR platforms. Synergie's reliance on traditional HR services, without significant investment in digital transformation, could be a long-term risk as the industry shifts toward tech-driven solutions. Its mid-market positioning allows agility but may limit its ability to compete on scale with industry giants.