| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 72.96 | 67 |
| Intrinsic value (DCF) | 265.11 | 507 |
| Graham-Dodd Method | 14.63 | -67 |
| Graham Formula | 47.08 | 8 |
NSE S.A. (ALNSE.PA) is a France-based technology company specializing in integrated systems for defense, aerospace, aeronautics, electronics, and telecommunications. Founded in 1983 and headquartered in Nizerolles, France, NSE designs, builds, and sells complex wired structures, on-board electronic equipment, night vision systems, and geolocation solutions. The company also provides logistical and technical support services, including aircraft retrofitting and operational condition management. NSE serves a diverse clientele across defense, aerospace, and large-scale industries, positioning itself as a key player in high-tech industrial solutions. With a strong focus on innovation and reliability, NSE S.A. continues to expand its footprint in France and internationally, leveraging its expertise in mission-critical systems. Investors looking for exposure to niche aerospace and defense technology sectors should consider NSE for its specialized capabilities and steady growth in a high-barrier-to-entry market.
NSE S.A. presents a niche investment opportunity in the aerospace and defense technology sector, with a market capitalization of €122.2 million. The company reported €103.6 million in revenue and €3.6 million in net income for the latest fiscal period, with a diluted EPS of €1.14. Its low beta (0.152) suggests stability relative to broader markets, making it a defensive play. However, its small size and specialization may limit scalability compared to larger defense contractors. Positive operating cash flow (€14.0 million) and manageable debt (€7.3 million) indicate financial health, while a modest dividend (€0.25 per share) provides income appeal. Risks include reliance on defense spending cycles and potential supply chain disruptions in aerospace components.
NSE S.A. operates in a highly specialized segment of aerospace and defense technology, competing with larger multinational firms and niche players. Its competitive advantage lies in its integrated systems expertise, particularly in on-board wiring, electronic equipment, and night vision solutions. The company benefits from long-term contracts in defense and aerospace, providing revenue stability. However, its smaller scale limits R&D spending compared to giants like Thales or Safran, potentially hindering innovation in cutting-edge technologies. NSE’s focus on retrofitting and MRO (Maintenance, Repair, and Overhaul) services differentiates it from pure-play manufacturers, offering recurring revenue streams. Geographically, its stronghold in France provides a stable base, but international expansion remains challenging against entrenched competitors. The company’s ability to maintain margins (net income of €3.6 million on €103.6 million revenue) reflects cost discipline, though pricing pressure from larger rivals could erode profitability over time.