Stock Analysis & Valuation Agripower France S.A. (ALAGP.PA)

• Previous Close: €1.03
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	285.26	27595
Intrinsic value (DCF)	0.64	-38
Graham-Dodd Method		n/a
Graham Formula	89.81	8619

Strategic Investment Analysis

Company Overview

Agripower France SA is a key player in the renewable utilities sector, specializing in the design, installation, and maintenance of anaerobic digestion units. Headquartered in Carquefou, France, the company provides methanization solutions tailored for communities, farmer groups, and industrial food processing companies, with power capacities ranging from 250 kW to 2 MW. Additionally, Agripower offers smaller standard units (22 kW, 33 kW, and 44 kW) for individual farms, supporting sustainable energy production. Operating in the growing biogas sector, Agripower contributes to the circular economy by converting organic waste into renewable energy. Despite its niche focus, the company faces challenges in scaling profitability amid high operational costs and competitive pressures in the European renewable energy market.

Investment Summary

Agripower France SA presents a high-risk investment opportunity due to its negative net income (-€4.89M) and operating cash flow (-€1.03M) in the latest fiscal year. The company operates in the promising biogas sector, benefiting from Europe's push toward renewable energy. However, its small market cap (~€3.91M) and significant debt (€3.19M) raise liquidity concerns. Investors should weigh the potential of biogas expansion against Agripower's financial instability and lack of dividends. The low beta (0.649) suggests relative stability compared to the broader market, but profitability remains a critical hurdle.

Competitive Analysis

Agripower France SA competes in the anaerobic digestion market, which is fragmented with regional and international players. Its competitive advantage lies in offering tailored solutions for small to mid-scale biogas projects, differentiating itself from larger utilities that focus on industrial-scale plants. However, the company struggles with financial sustainability, limiting its ability to invest in R&D or expand market share. Competitors with stronger balance sheets can leverage economies of scale, while Agripower's niche positioning may appeal to localized projects. The lack of profitability and high debt further constrain its ability to compete with well-capitalized rivals in the renewable utilities space. Long-term viability depends on securing funding and improving operational efficiency.

Major Competitors

• Engie SA (ENGI.PA): Engie is a global energy leader with a strong presence in biogas and renewable utilities. Its financial strength and diversified portfolio give it an edge over Agripower in large-scale projects. However, Engie's focus on broader energy solutions may limit its agility in niche biogas markets where Agripower operates.
• Électricité de France SA (EDF.PA): EDF dominates the French energy market with significant investments in renewables, including biogas. Its scale and government backing provide stability, but its bureaucratic structure may slow innovation compared to smaller players like Agripower.
• Verbund AG (VER.VI): Verbund is a major European renewable energy provider with a focus on hydropower but expanding into biogas. Its financial health and regional expertise pose a threat to Agripower, though Verbund's primary focus remains on larger-scale utilities.
• Ørsted A/S (ORSTED.CO): Ørsted is a global leader in offshore wind but has been investing in biogas. Its strong balance sheet and international reach overshadow Agripower, though Ørsted's biogas segment is not its core focus.