| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 143.53 | -35 |
| Intrinsic value (DCF) | 77.76 | -65 |
| Graham-Dodd Method | 91.15 | -59 |
| Graham Formula | 572.16 | 160 |
Idsud S.A. is a diversified French conglomerate with a rich history dating back to 1850, headquartered in Paris. The company operates across multiple sectors, including travel, exchange services, gaming, renewable energies, and investments, positioning itself as a versatile player in the industrials sector. With a market capitalization of approximately €81.3 million, Idsud leverages its long-standing presence in France to maintain a stable yet niche market position. The company's diversified business model allows it to mitigate risks associated with sector-specific downturns, while its involvement in renewable energies aligns with growing global sustainability trends. Despite its small size, Idsud's strategic focus on high-margin segments and conservative financial management (evidenced by a low beta of 0.573) makes it a unique entity in the European conglomerate space. Investors may find its historical resilience and multi-industry exposure appealing, though its limited scale compared to larger peers could constrain growth potential.
Idsud S.A. presents a mixed investment profile. On the positive side, the company boasts a diversified business model, a low beta (0.573) indicating lower volatility relative to the market, and a strong net income of €10.3 million (FY 2024) with a high diluted EPS of €20.84. Its €9.6 million cash position and manageable total debt of €3.7 million suggest financial stability. However, the lack of dividend payouts and minimal revenue (€1.1 million) raise questions about its growth trajectory and cash flow generation. The absence of reported operating cash flow and capital expenditures further limits visibility into its operational efficiency. While its niche positioning and historical longevity are strengths, Idsud's small market cap and limited scale in competitive industries like renewable energy and travel may deter investors seeking aggressive growth or income generation.
Idsud S.A. operates in highly fragmented and competitive industries, which dilutes its competitive edge. In travel and exchange services, it faces giants like Accor and Amadeus; in renewables, it competes with specialized firms like Neoen. Its conglomerate structure provides diversification but lacks the scale to dominate any single sector. The company’s primary advantage lies in its historical brand recognition in France and a conservative financial approach (low debt, high cash reserves). However, this conservatism may hinder aggressive expansion or R&D investments, particularly in fast-evolving sectors like renewable energy. Unlike larger peers, Idsud does not benefit from economies of scale or global reach, limiting its ability to negotiate partnerships or pricing power. Its gaming segment, while unspecified, likely faces stiff competition from both digital platforms and established European operators. The lack of disclosed operating cash flows or capex suggests minimal reinvestment, potentially eroding long-term competitiveness. Idsud’s niche survival strategy may appeal to risk-averse investors, but its inability to specialize or scale significantly caps its market positioning.