| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 115.50 | 3287 |
| Intrinsic value (DCF) | 1.52 | -55 |
| Graham-Dodd Method | 6.80 | 99 |
| Graham Formula | 0.50 | -85 |
ACTIA Group S.A. is a France-based technology company specializing in electronic on-board systems for the automotive and telecommunications industries. With a history dating back to 1957, ACTIA operates in two key divisions: Automotive and Telecommunications. The Automotive division provides advanced electronic systems for vehicle connectivity, instrumentation, infotainment, telematics, and diagnostic tools, serving both original equipment manufacturers (OEMs) and aftermarket segments. The Telecommunications division offers ground station equipment, energy transmission control systems, and railway-specific solutions. ACTIA's expertise in embedded electronics positions it as a critical player in the evolving automotive and industrial IoT sectors. Headquartered in Toulouse, France, the company serves international markets with a focus on innovation and reliability. ACTIA's diversified portfolio and strong engineering capabilities make it a relevant player in the global automotive electronics and industrial communication markets.
ACTIA Group presents a mixed investment profile. The company operates in growing segments like automotive electronics and industrial IoT, benefiting from increasing vehicle electrification and connectivity trends. With €535.1 million in revenue and €18.2 million net income (FY 2024), ACTIA demonstrates moderate profitability. However, investors should note its high total debt (€230.7 million) relative to its market capitalization (~€60.7 million), which raises leverage concerns. The company generates positive operating cash flow (€62.7 million) and maintains €43.6 million in cash reserves, providing some financial flexibility. ACTIA's beta of 1.048 suggests market-average volatility. The dividend yield appears modest (€0.12 per share). While the company has technological expertise in niche automotive and telecom applications, its small market cap and debt load may deter risk-averse investors. The stock could appeal to those bullish on European automotive tech suppliers with international exposure.
ACTIA Group competes in the specialized automotive electronics and industrial communication markets, where it differentiates through its vertical integration and application-specific solutions. In automotive electronics, ACTIA's strength lies in its broad portfolio spanning instrument clusters, telematics, and diagnostic systems—areas experiencing growth due to increasing vehicle connectivity mandates. However, the company faces intense competition from larger automotive suppliers with greater R&D budgets and OEM relationships. ACTIA's telecom division competes in niche industrial communication segments, where its railway and energy transmission systems have established customer bases but limited scale compared to global industrial tech players. The company's competitive advantage stems from its French engineering heritage and ability to customize solutions for regulated industries like transportation and energy. Its main challenges include competing with better-capitalized multinationals and navigating the capital-intensive nature of automotive electronics. ACTIA's smaller size allows agility in serving specialized applications but limits its bargaining power with suppliers and customers. The company's future positioning will depend on its ability to capitalize on vehicle electrification trends while managing its debt load.