Stock Analysis & Valuation Peugeot Invest S.A. (0HV8.L)

• Previous Close: £72.70
• Sector Valuation Confidence Level: High

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	61.90	-15
Intrinsic value (DCF)	54.57	-25
Graham-Dodd Method	143.70	98
Graham Formula	68.70	-6

Strategic Investment Analysis

Company Overview

Peugeot Invest SA is a Paris-based investment company with a diversified portfolio spanning private equity, real estate, and sustainable governance-focused investments. Founded in 1929 and listed on the London Stock Exchange, the firm operates within the Financial Services sector, specializing in Asset Management. With a market capitalization of €1.97 billion, Peugeot Invest leverages its long-standing expertise to generate value through strategic holdings, including stakes in major industrial and automotive ventures. The company emphasizes environmental, social, and governance (ESG) principles, aligning with modern investment trends. Its revenue of €285.5 million and net income of €146.3 million in its latest fiscal year underscore its financial stability. Peugeot Invest’s dividend yield, supported by a €3.25 per share payout, appeals to income-focused investors. The firm’s zero-debt balance sheet and robust operating cash flow of €342.8 million highlight its conservative yet effective capital management strategy.

Investment Summary

Peugeot Invest SA presents a compelling case for investors seeking exposure to European private equity and real estate with a strong ESG tilt. Its diversified portfolio and zero-debt position mitigate financial risk, while a beta of 1.251 suggests moderate volatility relative to the market. The company’s €3.25 dividend per share and consistent earnings (€5.87 diluted EPS) signal reliable income generation. However, its reliance on private equity returns ties performance to broader economic cycles, and its niche focus may limit growth compared to broader asset managers. The stock is suited for long-term investors prioritizing stability and ESG alignment over high-growth opportunities.

Competitive Analysis

Peugeot Invest SA differentiates itself through its concentrated focus on private equity and real estate, coupled with a strong ESG mandate. Unlike traditional asset managers, it operates as a holding company with strategic stakes in industrial and automotive sectors, benefiting from the Peugeot family’s legacy. Its competitive edge lies in its ability to leverage deep industry connections and long-term investment horizons. However, its niche approach limits scalability compared to global asset managers like BlackRock or KKR. The firm’s zero-debt balance sheet and high cash flow generation provide flexibility but may also indicate under-leverage in a low-interest environment. Competitors with broader fund offerings or higher AUM may outperform in diversified market conditions, but Peugeot Invest’s specialized strategy appeals to ESG-conscious investors and those bullish on European industrial growth.

Major Competitors

• Danone SA (BN.PA): Danone, a multinational food-products corporation, is not a direct competitor but represents an alternative French investment with ESG focus. Its strengths include a global brand and sustainability initiatives, but it faces margin pressures in competitive consumer markets. Unlike Peugeot Invest, Danone operates in a low-growth industry.
• KKR & Co. Inc. (KKR): KKR is a global private equity giant with a diversified portfolio and higher AUM, offering scalability Peugeot Invest lacks. Its strengths include broader geographic reach and multi-strategy funds, but it carries higher leverage. Peugeot Invest’s ESG focus and family-backed stability provide a contrast to KKR’s aggressive growth model.
• BlackRock Inc. (BLK): BlackRock dominates asset management with its scale and iShares ETFs. Its strengths include technological integration (Aladdin) and global reach, but it lacks Peugeot Invest’s concentrated private equity approach. BlackRock’s ESG offerings are broader but less specialized than Peugeot’s niche holdings.
• TotalEnergies SE (FP.PA): TotalEnergies, an energy major, overlaps in ESG investing but operates in a higher-risk sector. Its strengths include renewable energy transitions and dividends, but oil-price volatility contrasts with Peugeot Invest’s stable private equity cash flows. Both appeal to ESG investors but differ in sector exposure.