| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.50 | -46 |
| Intrinsic value (DCF) | 20.31 | -66 |
| Graham-Dodd Method | 6.50 | -89 |
| Graham Formula | 23.90 | -60 |
Aubay SA is a leading European digital services company specializing in IT consulting, digital transformation, and cloud solutions. Headquartered in Boulogne-Billancourt, France, Aubay operates across Belgium, Luxembourg, Spain, Portugal, Italy, and France, serving diverse sectors including banking/finance, insurance, public services, telecom, retail, and more. The company offers a comprehensive suite of services such as management consulting, IT infrastructure and security, big data analytics, digital marketing, and agile DevOps solutions. Founded in 1997, Aubay has established itself as a trusted partner for enterprises undergoing digital transformation, leveraging emerging technologies like AI, blockchain, and RPA. With a market cap of €592 million and a strong presence in key European markets, Aubay is well-positioned in the competitive Software - Services sector, delivering innovative and scalable IT solutions to drive operational efficiency and business growth.
Aubay SA presents a compelling investment opportunity with its strong foothold in the European digital services market, diversified service offerings, and consistent financial performance. The company reported €540.3 million in revenue and €37.6 million in net income for the latest fiscal year, with a diluted EPS of €2.93. Aubay's robust operating cash flow of €55 million and a healthy cash position of €84.7 million underscore its financial stability. The company's beta of 1.056 indicates moderate market sensitivity, making it a relatively stable pick in the tech sector. However, investors should consider potential risks such as competition from larger IT service providers and economic fluctuations in its core European markets. The dividend yield, supported by a €1.30 per share payout, adds to its attractiveness for income-focused investors.
Aubay SA competes in the highly fragmented European IT services market, where differentiation is driven by specialized expertise, geographic reach, and technological innovation. The company's competitive advantage lies in its deep sector-specific knowledge, particularly in banking, insurance, and public services, allowing it to deliver tailored digital transformation solutions. Aubay's hybrid cloud and cybersecurity offerings position it well against larger rivals, while its agility in adopting emerging technologies like AI and blockchain enhances its value proposition. However, the company faces stiff competition from global IT giants and regional players with greater scale and resources. Aubay's mid-market focus and strong client relationships in France and neighboring countries provide a defensive moat, but expansion into new geographies and verticals will be critical to sustaining growth. The company's ability to maintain high service quality and innovation while managing costs will determine its long-term competitiveness in an increasingly crowded market.