| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 188.66 | 7212 |
| Intrinsic value (DCF) | 1.24 | -52 |
| Graham-Dodd Method | 3.79 | 47 |
| Graham Formula | n/a |
Encres Dubuit (ALDUB.PA) is a French specialty chemicals company specializing in the formulation, manufacturing, and sale of technical and industrial inks for screen printing, pad printing, and digital printing applications. Founded in 1970 and headquartered in Mitry-Mory, France, the company serves a diverse range of industries, including automotive, electronics, packaging, textiles, and more. Encres Dubuit provides color matching and management services alongside technical support, catering to applications such as membrane switches, optical discs, labels, and security inks. The company operates globally, positioning itself as a niche player in the industrial ink market. Despite its small market capitalization (~€8.6M), Encres Dubuit maintains relevance in specialized printing solutions, though recent financial performance indicates operational challenges. The company’s focus on high-performance inks for industrial applications differentiates it from broader chemical manufacturers.
Encres Dubuit presents a high-risk investment case due to its recent financial struggles, including a net loss of €2.23M in FY 2023 and negative operating cash flow. The company’s small market cap (~€8.6M) and low beta (0.129) suggest limited liquidity and low correlation with broader markets, which may deter institutional investors. However, its niche focus on industrial inks could offer turnaround potential if demand for specialized printing solutions grows in sectors like automotive or electronics. The lack of dividends and weak cash flow generation are concerning, but the company’s debt levels remain manageable (€1.2M total debt against €4.1M cash). Investors should monitor cost restructuring efforts and potential recovery in industrial demand before considering a position.
Encres Dubuit competes in the highly fragmented specialty inks market, where differentiation is driven by technical expertise and application-specific solutions. The company’s competitive advantage lies in its deep industry knowledge and ability to customize inks for niche uses (e.g., membrane switches, security inks). However, its small scale limits R&D spending compared to larger chemical firms, and its recent financial losses suggest inefficiencies in operations or pricing power. The shift toward digital printing in some industries also poses a threat to its traditional screen/pad printing ink business. Encres Dubuit’s global presence is a strength, but it lacks the brand recognition of multinational competitors like Flint Group or Siegwerk. Its focus on high-margin specialty applications helps mitigate commoditization risks, but reliance on industrial demand cycles makes revenue volatile. The company’s ability to innovate in eco-friendly inks could be a future differentiator as sustainability regulations tighten.