Stock Analysis & Valuation Parrot S.A. (0OPY.L)

• Previous Close: £7.38
• Sector Valuation Confidence Level: Low

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	54.70	641
Intrinsic value (DCF)	3.30	-55
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Parrot S.A. (0OPY.L) is a Paris-based technology company specializing in commercial drones, precision agriculture solutions, and 3D mapping software. Founded in 1994, Parrot has established itself as a key player in the drone industry, offering hardware, software, and services tailored for agriculture, defense, security, and surveying applications. The company’s flagship product, Pix4Dmapper, is a leading drone modeling software, while its sensor-equipped drones support precision farming and inspection tasks. Parrot also provides connected consumer solutions, including audio devices and mini-drones. Operating in a high-growth sector, Parrot competes in the global drone market, which is driven by increasing demand for automation, AI-driven analytics, and IoT integration. Despite challenges in profitability, the company maintains a strong technological foundation and a diversified product portfolio, positioning it for potential growth in commercial and industrial drone applications.

Investment Summary

Parrot S.A. presents a speculative investment opportunity with exposure to the expanding commercial drone market. The company’s diversified product offerings, including precision agriculture and 3D mapping solutions, align with growing industry trends. However, its negative net income (-€9.2M in the latest period) and unprofitability raise concerns about near-term financial stability. The company’s €33.6M cash reserve provides some liquidity, but investors should weigh the risks of continued losses against potential upside from increased adoption of drone technology in agriculture and defense. With a market cap of €207.5M and a beta of 0.77, Parrot is a moderately volatile play in the tech sector, suitable for investors with a higher risk tolerance seeking exposure to niche drone applications.

Competitive Analysis

Parrot S.A. operates in a competitive landscape dominated by larger players such as DJI, while also facing pressure from specialized agriculture and defense-focused drone manufacturers. The company’s competitive advantage lies in its integrated software-hardware ecosystem, particularly Pix4Dmapper, which is widely used in professional surveying and precision agriculture. However, Parrot lacks the scale and brand recognition of DJI, which controls a significant share of the commercial and consumer drone market. In agriculture, Parrot competes with companies like AgEagle and Sentera, which offer similar sensor-based solutions. Parrot’s strength in European markets provides regional diversification, but its limited profitability and R&D budget compared to U.S. and Chinese competitors could hinder long-term competitiveness. The company’s focus on niche applications (vineyard monitoring, defense) helps differentiate it, but scalability remains a challenge. Without a clear path to sustained profitability, Parrot risks losing ground to better-funded rivals in an innovation-driven industry.

Major Competitors

• SZ DJI Technology Co. (DJI): DJI is the global leader in consumer and commercial drones, with dominant market share and superior R&D capabilities. Unlike Parrot, DJI benefits from vertical integration and economies of scale, allowing aggressive pricing. However, DJI’s lack of a public listing limits transparency, and geopolitical tensions (U.S./China) pose regulatory risks. Parrot’s European base offers a regional alternative but lacks DJI’s product breadth.
• AgEagle Aerial Systems Inc. (UAVS): AgEagle focuses exclusively on agricultural drones, competing with Parrot’s precision farming solutions. AgEagle’s eBee series is a direct competitor to Parrot’s offerings, but both companies struggle with profitability. AgEagle has stronger U.S. market penetration, while Parrot holds an edge in European vineyards. Neither has matched DJI’s scale.
• AeroVironment Inc. (AVAV): AeroVironment is a defense-focused drone manufacturer with lucrative U.S. military contracts, a segment Parrot is attempting to enter. AeroVironment’s strong government ties and higher-margin defense business provide stability but limit commercial agility. Parrot’s Pix4D software gives it an advantage in civilian applications, but AeroVironment’s financials are more robust.
• Kopin Corporation (KOPN): Kopin supplies components for drones and AR/VR systems, overlapping with Parrot’s hardware business. Kopin’s microdisplays are used in military headsets, a market Parrot targets. However, Kopin is a supplier rather than a direct competitor. Parrot’s end-to-end solutions differentiate it, but both face profitability challenges.