| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 15.23 | -27 |
| Intrinsic value (DCF) | 8.96 | -57 |
| Graham-Dodd Method | 31.45 | 50 |
| Graham Formula | n/a |
Herige (ALHRG.PA) is a leading French building materials company specializing in the distribution and manufacturing of construction products. Founded in 1907 and headquartered in L'Herbergement, France, Herige serves both professional contractors and DIY customers across France. The company operates under two main segments: distribution (trading building materials) and manufacturing (producing ready-mix concrete, precast concrete, insulated concrete forms, and industrial joinery under the BtoC brand). Herige, formerly known as VM Matériaux, rebranded in 2015 to reflect its diversified operations. With a market cap of approximately €65.4 million, Herige plays a vital role in France's construction sector, benefiting from steady demand in residential and commercial infrastructure. The company's vertically integrated model—combining distribution and manufacturing—enhances its supply chain efficiency and market responsiveness.
Herige presents a niche investment opportunity in the French construction materials sector, supported by stable revenue (€525.7M in FY 2023) and modest profitability (net income of €10.9M). The company's low beta (0.87) suggests lower volatility relative to the market, appealing to risk-averse investors. However, its small market cap and limited international exposure may constrain growth compared to larger peers. Key strengths include a diversified product portfolio and strong regional presence, but high debt (€98.8M) and reliance on the cyclical construction industry pose risks. The dividend yield (~3.5% based on a €1.9/share payout) adds income appeal, though investors should monitor France's economic conditions and construction activity.
Herige's competitive advantage lies in its dual focus on distribution and manufacturing, allowing it to control costs and maintain margins in a fragmented market. Its BtoC joinery brand and precast concrete products differentiate it from pure distributors. However, the company faces intense competition from larger European construction material firms with greater scale and geographic diversification. Herige's regional focus in France limits exposure to broader EU growth but reduces logistical complexities. Its debt load is higher than some peers, but strong operating cash flow (€24.5M in FY 2023) supports financial stability. The company's niche in insulated concrete forms and industrial joinery provides some insulation from price wars in commoditized materials like cement. To sustain growth, Herige must invest in automation and green building solutions to align with EU sustainability trends.