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Stock Analysis & ValuationCerinnov Group S.A. (ALPCV.PA)

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0.03
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)99.86375314
Intrinsic value (DCF)10.8240577
Graham-Dodd Method0.692490
Graham Formula0.27930

Strategic Investment Analysis

Company Overview

Cerinnov Group SA is a France-based industrial machinery company specializing in the design, manufacture, and sale of advanced production equipment for the ceramics and glass industries. Founded in 1975 and headquartered in Limoges, the company provides a comprehensive range of machinery, including shaping and glazing machines, laser machines, decoration machines, and customized solutions. Cerinnov serves global markets with its innovative technologies, such as pressure casting, laser sintering, and automated glazing systems. The company also offers after-sales services, including maintenance, training, and spare parts. Operating in the industrials sector, Cerinnov plays a critical role in modernizing ceramic and glass manufacturing processes, enhancing efficiency, and reducing environmental impact. With a strong focus on R&D and customer-centric solutions, Cerinnov Group SA is positioned as a key player in industrial automation for high-precision ceramic production.

Investment Summary

Cerinnov Group SA presents a niche investment opportunity in the industrial machinery sector, particularly for investors interested in specialized ceramic and glass manufacturing equipment. The company's FY 2023 financials show modest revenue (€15.01M) and net income (€114K), with a diluted EPS of €0.0254. While its market cap (~€2.38M) is small, the high beta (2.317) indicates significant volatility, suggesting higher risk but potential for growth. Positive operating cash flow (€1.36M) is a strength, but substantial debt (€6.38M) and negative capital expenditures (-€800K) raise concerns about liquidity and reinvestment capacity. The lack of dividends may deter income-focused investors. Cerinnov's competitive edge lies in its specialized machinery and after-sales services, but its small scale limits economies of scale compared to larger industrial players. Investors should weigh its technological niche against financial constraints and market cyclicality.

Competitive Analysis

Cerinnov Group SA operates in a highly specialized segment of industrial machinery, focusing on ceramic and glass production equipment. Its competitive advantage stems from its deep industry expertise, proprietary technologies (e.g., laser sintering machines, automated glazing lines), and strong after-sales support. The company's ability to provide customized solutions for high-precision ceramic manufacturing differentiates it from generalist industrial machinery providers. However, Cerinnov faces challenges in scaling due to its relatively small size (€15M revenue) and limited global reach compared to multinational competitors. Its financial position is constrained by high debt levels, which may hinder R&D investments and expansion. The company's niche focus allows it to maintain strong relationships with ceramic manufacturers, but it remains vulnerable to downturns in the construction and luxury ceramics markets. Competitors with broader product portfolios and stronger balance sheets could pose a threat, particularly in automating traditional ceramic processes. Cerinnov's future growth depends on its ability to innovate, expand into emerging markets, and manage financial leverage.

Major Competitors

  • SACMI (SACEX.PA): SACMI is a global leader in ceramic and packaging machinery, with a broader product portfolio and stronger financial scale than Cerinnov. Its strengths include advanced automation solutions and a strong presence in emerging markets. However, its larger size may reduce flexibility in customization compared to Cerinnov.
  • Keda Industrial Group (KEDA): Keda is a major Chinese player in ceramic machinery, benefiting from lower production costs and strong domestic demand. It competes aggressively on price but may lack the high-end technological specialization of Cerinnov. Its expansion into international markets poses a long-term competitive threat.
  • Andritz AG (ANDR.VI): Andritz is a diversified industrial machinery giant with a ceramics division. Its strengths include vast R&D resources and global distribution, but its focus is less specialized than Cerinnov's. Andritz's scale allows for better financing options, but it may not match Cerinnov's niche expertise.
  • SITI B&T Group (SITI.B.MI): SITI B&T specializes in ceramic and glass technologies, similar to Cerinnov, but with a stronger focus on digital and sustainable solutions. Its larger size provides competitive R&D budgets, but Cerinnov may have an edge in certain high-precision applications.
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