| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2023.93 | 18299 |
| Intrinsic value (DCF) | 4.20 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Devernois S.A. is a French fashion retailer specializing in women's clothing and accessories, operating since 1927. Headquartered in Le Coteau, France, the company offers a diverse product range, including shirts, dresses, knitwear, and accessories like scarves, bags, and shoes. Devernois operates a network of 74 stores across France, Belgium, Portugal, the UK, Spain, and Switzerland, complemented by an online sales channel. As a subsidiary of HSTB SARL, Devernois caters to the mid-range women's apparel market, blending classic and contemporary styles. The company operates in the competitive consumer cyclical sector, facing challenges from fast fashion and e-commerce giants. Despite its modest market capitalization (€3.11M), Devernois maintains a niche presence in European fashion retail, leveraging its heritage and localized store footprint.
Devernois S.A. presents a high-risk investment case due to its small market cap (€3.11M), negative net income (-€182K in FY2024), and lack of dividends. The company's negative beta (-0.699) suggests counter-cyclical behavior, but its €8.8M debt against €2M cash reserves raises liquidity concerns. Positive operating cash flow (€2M) indicates some operational viability, but the apparel sector's competitive intensity and Devernois' limited scale pose significant challenges. Investors may find speculative value in its European store network (74 locations) and online channel, but turnaround potential depends on improved profitability and debt management. The stock is likely suited only for highly risk-tolerant investors speculating on a niche retail recovery.
Devernois competes in the crowded European women's apparel market, where its small scale (€19.6M revenue) limits bargaining power against suppliers and competitors. Its competitive advantage lies in its localized store presence (59 French stores) and multi-category assortment combining clothing and accessories. However, the company lacks the economies of scale of fast-fashion leaders like Inditex or the digital prowess of pure-play e-tailers. With negative EPS (-€0.61), Devernois struggles to fund the marketing and inventory turnover needed to compete with trend-driven retailers. Its subsidiary status under HSTB SARL provides some financial backing but may limit strategic flexibility. The store network—while providing customer touchpoints—carries high fixed costs in an era favoring digital channels. Devernois' product positioning lacks clear differentiation from mid-market European competitors like Comptoir des Cotonniers or The Kooples, leaving it vulnerable to pricing pressure and margin erosion.