investorscraft@gmail.com

Stock Analysis & ValuationPrecia S.A. (ALPM.PA)

Professional Stock Screener
Previous Close
27.90
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)49.2577
Intrinsic value (DCF)13.06-53
Graham-Dodd Method16.07-42
Graham Formula14.91-47

Strategic Investment Analysis

Company Overview

Precia S.A. (ALPM.PA) is a leading French manufacturer of precision weighing solutions, serving industries such as agribusiness, food processing, waste management, and logistics. Founded in 1887 and headquartered in Privas, France, Precia specializes in industrial and laboratory weighing systems, including crane scales, platform scales, and dynamic weight control solutions. The company also offers advanced software solutions like TRUCKFLOW for weighbridge management and DATABULK for bulk weighing supervision. With a strong focus on innovation, Precia provides connected services and smartphone applications like WEIGH2FLOW and WEIGH2CONTROL to enhance operational efficiency. Operating globally, Precia combines traditional engineering expertise with modern digital solutions, positioning itself as a trusted partner for industries requiring high-precision weighing technology. Its diversified product portfolio and commitment to R&D make it a key player in the industrial machinery sector.

Investment Summary

Precia S.A. presents a stable investment opportunity with a market capitalization of €155.2 million and a beta of 0.584, indicating lower volatility compared to the broader market. The company reported €168.9 million in revenue and €10.9 million in net income for the latest fiscal year, with a diluted EPS of €2.02. Precia maintains a solid balance sheet with €32.4 million in cash and equivalents and manageable total debt of €23.9 million. Its operating cash flow of €16.96 million supports a dividend payout of €0.40 per share, reflecting a commitment to shareholder returns. However, the company operates in a competitive niche market with moderate growth prospects, and its capital expenditures of €2.77 million suggest limited aggressive expansion. Investors may find Precia attractive for its steady performance and dividend yield, but growth-oriented investors might seek higher-growth opportunities in the industrials sector.

Competitive Analysis

Precia S.A. competes in the precision weighing solutions market, where differentiation is driven by technological innovation, reliability, and industry-specific customization. The company’s competitive advantage lies in its long-standing reputation (founded in 1887), diversified product portfolio, and integration of digital solutions like DATABULK and TRUCKFLOW software. Its focus on hazardous area weighing and bulk dosing products further strengthens its niche positioning. However, Precia faces competition from larger multinational players with broader distribution networks and greater R&D budgets. Its French base provides regional strength but may limit global reach compared to competitors with a more extensive international presence. The company’s moderate beta (0.584) suggests resilience to market fluctuations, but its growth is constrained by the relatively stable demand in industrial weighing. Precia’s ability to innovate in smart weighing solutions (e.g., smartphone apps) could be a key differentiator, though scalability remains a challenge.

Major Competitors

  • Mannatech, Incorporated (MTEX): Mannatech operates in the health and wellness sector, not directly competing with Precia’s industrial weighing solutions. Its strengths lie in nutritional supplements, but it lacks relevance to Precia’s core market.
  • Mitsubishi Electric Corporation (MTSL.L): Mitsubishi Electric offers industrial automation and weighing systems, competing indirectly with Precia. Its global scale and diversified industrial portfolio give it an advantage, but Precia’s specialized focus may outperform in niche applications.
  • Sartorius Stedim Biotech (SART.PA): Sartorius specializes in laboratory and bioprocess weighing solutions, overlapping with Precia’s laboratory segment. Its strong biotech focus and higher R&D spending pose a threat, but Precia’s broader industrial base provides diversification.
  • Metso Outotec Corporation (METSO.HE): Metso Outotec provides bulk material handling and process weighing systems, competing directly with Precia’s bulk weighing products. Its larger scale and mining industry focus are strengths, but Precia’s agility in software integration offers a counterbalance.
  • Siemens AG (SIEGn.DE): Siemens offers industrial weighing and automation solutions under its Process Industries division. Its vast resources and global reach overshadow Precia, but Precia’s specialized expertise in hazardous area weighing provides a niche edge.
HomeMenuAccount