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Stock Analysis & ValuationLogic Instrument S.A. (ALLOG.PA)

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1.76
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)855.1048485
Intrinsic value (DCF)302.0017059
Graham-Dodd Method1.16-34
Graham Formula10.35488

Strategic Investment Analysis

Company Overview

Logic Instrument S.A. (ALLOG.PA) is a French technology company specializing in the design, manufacture, and distribution of rugged mobile computing solutions for professional and military applications. Founded in 1987 and headquartered in Igny, France, the company offers a range of durable fieldbook tablets, smartphones, military servers, notebooks, and handheld devices designed to withstand harsh environments. Operating in the computer hardware sector, Logic Instrument serves industries requiring robust, high-performance mobile computing, including defense, logistics, and field services. With a market capitalization of approximately €15.8 million, the company focuses on niche markets where durability and reliability are critical. Its products are tailored for professionals working in extreme conditions, positioning Logic Instrument as a key player in the rugged computing segment. The company’s commitment to innovation and quality has enabled it to maintain a stable presence in a competitive industry dominated by larger multinational players.

Investment Summary

Logic Instrument S.A. presents a niche investment opportunity in the rugged mobile computing market, with a stable financial position and modest profitability. The company reported €27.95 million in revenue and €1.23 million in net income for the latest fiscal period, with a diluted EPS of €0.14. Its strong operating cash flow (€2.08 million) and minimal capital expenditures (-€920) suggest efficient operations. However, its small market cap (€15.8 million) and lack of dividend payouts may limit appeal to growth-focused investors. The low beta (0.493) indicates lower volatility compared to the broader market, which could attract conservative investors. Risks include competition from larger firms and dependence on specialized markets. The company’s financial health is supported by €5.37 million in cash and €3.80 million in total debt, providing a reasonable liquidity cushion.

Competitive Analysis

Logic Instrument S.A. competes in the rugged mobile computing segment, a niche within the broader computer hardware industry. Its competitive advantage lies in its specialization in durable, high-performance devices tailored for professional and military use. Unlike mainstream consumer electronics firms, Logic Instrument focuses on reliability in extreme conditions, which allows it to command premium pricing in its target markets. However, the company faces intense competition from larger players with greater R&D budgets and global distribution networks. Its French base provides regional strength but limits international reach compared to multinational rivals. The company’s small scale may hinder its ability to compete on price or innovation speed against industry giants. That said, its deep expertise in ruggedized technology and strong relationships with defense and industrial clients provide a defensible market position. The lack of significant debt and positive cash flow suggest operational stability, but long-term growth may depend on expanding into adjacent markets or forming strategic partnerships.

Major Competitors

  • Panasonic Corporation (PANW): Panasonic is a global leader in rugged computing, offering Toughbook laptops and tablets widely used in industrial and military applications. Its strong brand and extensive R&D resources give it a significant advantage over smaller players like Logic Instrument. However, Panasonic’s broad product portfolio may dilute its focus on rugged devices, whereas Logic Instrument specializes exclusively in this niche.
  • Getac Technology Corporation (GETI.L): Getac is a major competitor in rugged computing, known for its durable tablets, notebooks, and handheld devices. The company benefits from vertical integration and strong military contracts, posing direct competition to Logic Instrument. Getac’s larger scale allows for more aggressive pricing, but Logic Instrument’s European presence may provide regional advantages.
  • Zebra Technologies Corporation (ZBRA): Zebra Technologies dominates the enterprise mobility market, including rugged devices for logistics and retail. Its extensive distribution network and advanced data capture technologies make it a formidable competitor. However, Zebra’s focus on broader enterprise solutions differs from Logic Instrument’s specialization in extreme-environment devices.
  • Datalogic S.p.A. (DTY.L): Datalogic specializes in automatic data capture and mobile computing, including rugged handhelds for industrial use. Its strong European footprint overlaps with Logic Instrument’s market. While Datalogic has a broader product range, Logic Instrument’s focus on military-grade devices provides differentiation.
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