| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 227.71 | 130 |
| Intrinsic value (DCF) | 432.70 | 336 |
| Graham-Dodd Method | 20.35 | -79 |
| Graham Formula | 0.54 | -99 |
Compagnie Lebon (ALBON.PA) is a diversified French investment company with a rich history dating back to 1847. Headquartered in Paris, the company operates across multiple sectors, including asset management, real estate, hospitality, and thermal bath operations. Its core business involves acquiring majority or minority stakes in unlisted small and medium-sized enterprises (SMEs), providing capital and strategic support. Additionally, Compagnie Lebon owns and manages a portfolio of 13 hotels and operates thermal baths and spas under well-known brands like Brides-les-Bains, Salins-les-Thermes, and Allevard. The company’s real estate valuation business further complements its investment activities. As a subsidiary of France Participations SA, Compagnie Lebon benefits from a stable ownership structure while maintaining a diversified revenue stream. With a market capitalization of approximately €105 million, the company plays a niche but strategic role in France’s financial services and hospitality sectors.
Compagnie Lebon presents a mixed investment case. On the positive side, its diversified business model—spanning private equity, real estate, and hospitality—provides multiple revenue streams and reduces sector-specific risks. The company’s thermal bath operations, in particular, offer a unique and resilient revenue source given their niche appeal in France’s wellness tourism market. However, the company reported a net loss of €149,000 in its latest fiscal year, raising concerns about profitability. The diluted EPS of -€0.129 further underscores these challenges. Despite this, Compagnie Lebon maintains a strong liquidity position with €21 million in cash and no debt, providing financial flexibility. The dividend payout of €3.5 per share may attract income-focused investors, but sustainability remains a question given recent earnings. Investors should weigh the company’s diversified asset base against its inconsistent profitability.
Compagnie Lebon operates in a highly competitive landscape, particularly in the French asset management and hospitality sectors. Its private equity arm competes with larger, more established investment firms that have greater capital and global reach. However, Compagnie Lebon’s focus on unlisted SMEs allows it to carve out a niche, offering localized expertise and hands-on management. In the hospitality segment, the company faces competition from both luxury hotel chains and boutique operators. Its thermal bath business differentiates it somewhat, as this is a specialized market with high barriers to entry due to regulatory and operational complexities. The company’s real estate valuation business is relatively small compared to dedicated real estate investment trusts (REITs) but benefits from synergies with its other divisions. Overall, Compagnie Lebon’s competitive advantage lies in its diversified portfolio and long-standing presence in France, though its smaller scale limits its ability to compete head-to-head with industry giants. The lack of debt is a strength, providing stability in volatile markets.