| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 62.90 | 118 |
| Intrinsic value (DCF) | 8.83 | -69 |
| Graham-Dodd Method | 4.40 | -85 |
| Graham Formula | 17.70 | -39 |
Sogeclair SA is a France-based engineering and production services provider specializing in the aerospace, defense, and transportation sectors. Operating through three key divisions—Aerospace, Vehicle, and Simulation—the company delivers high-value engineering solutions, including aerostructures, cabin design, manufacturing tooling, and thermoplastic product development. Its Vehicle division focuses on specialized civilian and military vehicles, while the Simulation division provides turnkey simulators and software platforms for training and operational support. Founded in 1986 and headquartered in Blagnac, France, Sogeclair serves a global clientele, leveraging its expertise in complex structural engineering and additive manufacturing. As a niche player in the Industrials sector, Sogeclair benefits from long-term contracts in aerospace and defense, positioning it as a key supplier for European and international markets. With a market cap of €68.3 million, the company combines innovation with operational efficiency, making it a strategic partner in high-tech engineering solutions.
Sogeclair SA presents a mixed investment profile with both opportunities and risks. The company operates in the stable aerospace and defense sectors, benefiting from long-term contracts and specialized engineering expertise. Its diversified divisions—Aerospace, Vehicle, and Simulation—provide revenue resilience, though reliance on aerospace (a cyclical industry) introduces volatility. Financially, Sogeclair reported €157 million in revenue and €4.4 million net income in its latest fiscal year, with a diluted EPS of €1.45. Operating cash flow (€17 million) is healthy, but the company carries moderate debt (€30.8 million) against €20.4 million in cash. The dividend yield (~3.5%) is attractive, but investors should note the high beta (1.44), indicating above-market volatility. Key risks include exposure to defense budget fluctuations and supply chain disruptions in aerospace. However, its niche engineering capabilities and additive manufacturing innovations offer growth potential in an evolving industry.
Sogeclair SA competes in a specialized segment of the aerospace and defense engineering services market, differentiating itself through integrated engineering and manufacturing solutions. Its competitive advantage lies in its ability to provide end-to-end services—from design (aerostructures, cabins) to production (thermoplastic components, tooling)—catering to both civil and military clients. The company’s Simulation division adds another layer of differentiation with proprietary training platforms, a high-margin segment. However, Sogeclair faces intense competition from larger aerospace engineering firms and defense contractors with greater scale and global reach. Its focus on the French and European markets limits diversification compared to multinational peers. The company’s relatively small size (€68M market cap) restricts R&D spending compared to giants like Safran, but agility allows it to pivot quickly in niche areas like additive manufacturing. Supply chain dependencies and subcontracting risks are notable weaknesses. Long-term contracts with Airbus and other OEMs provide stability, but pricing pressure from clients could squeeze margins. Overall, Sogeclair’s positioning as a high-value engineering partner is its strongest asset, though scalability remains a challenge.