Stock Analysis & Valuation Quadpack Industries, S.A. (ALQP.PA)

• Previous Close: €16.00
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	0.29	-98
Graham Formula	0.74	-95

Strategic Investment Analysis

Company Overview

Quadpack Industries, S.A. (ALQP.PA) is a leading manufacturer and supplier of packaging solutions tailored for the cosmetics industry. Headquartered in Barcelona, Spain, the company specializes in personalized standard packaging and bespoke packs for skincare, makeup, and fragrance products. Its diverse product portfolio includes bottles, caps, deodorants, travel sprays, compacts, jars, mascara, and secondary packaging accessories. Quadpack serves a global clientele across the U.S., Europe, and Asia-Pacific regions, leveraging its expertise in wooden and plastic packaging as well as package printing services. Operating in the consumer cyclical sector under the packaging and containers industry, Quadpack differentiates itself through innovation, sustainability, and customization. As a subsidiary of Eudald Holdings, S.L., the company continues to expand its market presence, catering to premium and mass-market cosmetic brands seeking high-quality, eco-friendly packaging solutions.

Investment Summary

Quadpack Industries presents a niche investment opportunity in the cosmetics packaging sector, with a market cap of €69.8 million. Despite reporting a net loss of €2.58 million in the latest fiscal year, the company generated €12.86 million in revenue and €13.8 million in operating cash flow, indicating potential for operational improvement. Its low beta (0.091) suggests lower volatility relative to the market, appealing to risk-averse investors. However, high total debt (€49.03 million) and negative EPS (-€0.59) raise concerns about financial stability. The lack of dividends may deter income-focused investors, but Quadpack’s specialization in sustainable and customized packaging could drive long-term growth as the cosmetics industry prioritizes eco-conscious solutions.

Competitive Analysis

Quadpack competes in the highly fragmented cosmetics packaging industry, where differentiation hinges on design innovation, material sustainability, and supply chain efficiency. Its competitive advantage lies in offering bespoke packaging solutions, which cater to premium cosmetic brands seeking unique, branded aesthetics. The company’s global footprint across Europe, Asia, and the U.S. provides a diversified revenue base, reducing regional dependency. However, Quadpack faces intense competition from larger players with greater economies of scale and R&D budgets. Its financial struggles (negative net income) may limit investment in automation or sustainable materials, putting it at a disadvantage against financially robust rivals. The company’s subsidiary structure under Eudald Holdings could offer strategic flexibility but may also constrain independent growth initiatives. To strengthen its position, Quadpack must focus on profitability, debt reduction, and leveraging its customization expertise to secure long-term contracts with major beauty brands.

Major Competitors

• Altarea SCA (ALTR.PA): Altarea operates in real estate and packaging, offering broader industrial solutions compared to Quadpack’s cosmetics focus. Its larger scale provides cost advantages, but it lacks Quadpack’s specialized design capabilities for beauty packaging. Altarea’s diversified portfolio reduces sector-specific risks but dilutes its expertise in cosmetics.
• Dassault Systèmes SE (DSY.PA): Dassault Systèmes provides 3D design software used in packaging development, indirectly competing with Quadpack’s manufacturing services. Its technological edge supports innovation but doesn’t replace Quadpack’s physical production assets. Dassault’s B2B software model yields higher margins but lacks direct industry penetration.
• RPC Group plc (RPC.L): RPC (now part of Berry Global) was a leader in plastic packaging with global scale, overshadowing Quadpack’s niche focus. Its acquisition by Berry highlights consolidation trends that Quadpack may struggle to match. RPC’s strength in mass production contrasts with Quadpack’s customization but offers lower per-unit costs.
• Berry Global Group, Inc. (BERY): Berry Global dominates the packaging industry with vast resources and vertical integration, posing a significant threat to smaller players like Quadpack. Its ability to serve multinational clients at scale dwarfs Quadpack’s offerings, though Berry may lack agility in bespoke designs for premium cosmetics brands.
• AptarGroup, Inc. (APTV): Aptar specializes in dispensing systems for cosmetics and pharmaceuticals, overlapping with Quadpack’s fragrance and skincare segments. Its patented technologies (e.g., airless pumps) give it an edge in functionality, but Quadpack retains advantages in aesthetic customization and wooden packaging niches.