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Stock Analysis & ValuationIT Link S.A. (ALITL.PA)

Professional Stock Screener
Previous Close
22.20
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)36.5665
Intrinsic value (DCF)9.54-57
Graham-Dodd Method16.25-27
Graham Formula47.30113

Strategic Investment Analysis

Company Overview

IT Link SA (ALITL.PA) is a France-based digitalization solutions provider specializing in IoT, embedded intelligence, and critical systems analysis. The company delivers a comprehensive suite of services, including industrial IoT solutions, data intelligence systems, mobile applications, and connected systems engineering. IT Link serves high-growth sectors such as automotive, aerospace, defense, energy, and healthcare, positioning itself as a key enabler of digital transformation. Headquartered in Le Kremlin-Bicêtre, the company leverages its expertise in dependability and big data analytics to support clients in optimizing operational efficiency and innovation. With a strong focus on industrial and scientific applications, IT Link plays a pivotal role in France's technology services sector, catering to both enterprise and public sector needs. Its diversified client base and engineering-driven approach make it a notable player in Europe's digital solutions landscape.

Investment Summary

IT Link SA presents a niche investment opportunity in the European digitalization and IoT services market. The company's €82.68M revenue and €4.03M net income (FY 2024) reflect stable profitability, supported by a diversified sector exposure. With a market cap of €42.27M and a beta of 0.923, it exhibits lower volatility compared to broader tech peers. Key strengths include strong cash reserves (€13.03M) and manageable debt (€8.82M), though operating cash flow (€3.77M) suggests moderate liquidity. Risks include reliance on the French market and competition from larger IT service providers. The dividend yield (~0.83% at €0.35/share) adds modest income appeal. Investors should weigh its specialized industrial IoT focus against scalability challenges.

Competitive Analysis

IT Link competes in the fragmented industrial IoT and digital services space, differentiating through sector-specific engineering expertise. Its focus on critical systems (e.g., aerospace, defense) provides sticky client relationships but limits mass-market scalability. The company's €82.68M revenue is modest compared to global IT service firms, though its profitability (4.9% net margin) outperforms many smaller peers. Strengths include deep domain knowledge in industrial big data and embedded systems—areas where larger competitors often lack specialization. However, its France-centric operations (~100% revenue likely domestic) expose it to regional economic cycles. Unlike SaaS-focused rivals, IT Link's hardware-integrated solutions (sensors, actuators) create higher-margin service bundling opportunities but require sustained R&D. Competitive threats include Capgemini's scale in enterprise IT and smaller agile firms in IoT analytics. Its ~€42M valuation suggests room for growth if international expansion materializes.

Major Competitors

  • Capgemini SE (CAP.PA): Capgemini dominates European IT services with €22.5B revenue (2023), dwarfing IT Link's scale. Its global delivery network and consulting prowess pose challenges for IT Link in enterprise deals. However, Capgemini lacks IT Link's niche focus on industrial IoT hardware integration, where the latter holds an agility advantage. Capgemini's broader AI/cloud focus may divert attention from embedded systems.
  • Alten SA (ATE.PA): Alten (€3.9B revenue) competes directly in engineering services, including aerospace/defense—a key IT Link sector. Alten's larger R&D budget and multinational footprint pressure IT Link's growth ambitions. However, IT Link's IoT-specific solutions and higher net margins (4.9% vs. Alten's ~3.5%) suggest better niche profitability.
  • Sopra Steria Group (SOP.PA): Sopra Steria (€5.3B revenue) overlaps in public sector and transportation IT—areas where IT Link has traction. Sopra's cybersecurity and ERP strengths contrast with IT Link's sensor-based IoT focus. IT Link's smaller size allows faster customization for industrial clients, though Sopra's financial scale wins larger contracts.
  • Akka Technologies (AKAO.PA): Akka (merged into Akkodis) was a key competitor in automotive/aerospace engineering. Its €1.5B pre-merger revenue and German presence challenged IT Link's EU expansion. IT Link's stronger balance sheet (lower debt-to-equity) provides stability, but Akkodis' combined scale post-merger intensifies competition for talent.
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