| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 13.24 | 722 |
| Intrinsic value (DCF) | 5.28 | 228 |
| Graham-Dodd Method | 29.96 | 1761 |
| Graham Formula | 13.46 | 736 |
Réalités SA (ALREA.PA) is a prominent real estate developer specializing in residential, commercial, and senior living projects in France's Great West region. Headquartered in Saint-Herblain, the company serves a diverse clientele, including first-time homebuyers, investors, businesses, and local governments, offering tailored real estate solutions. Réalités operates across multiple segments, including housing developments, commercial properties, and complex urban projects, positioning itself as a key player in France's regional real estate market. With a focus on sustainable development and community-centric projects, the company plays a vital role in urban planning and local economic growth. Listed on Euronext Paris, Réalités combines local market expertise with a scalable business model, making it a relevant investment in the European real estate sector.
Réalités SA presents a mixed investment profile. The company's regional focus in France's Great West provides stability but limits diversification. With a market cap of €4.84M and a beta of 0.511, it exhibits lower volatility compared to broader markets. However, FY 2023 financials show challenges: revenue of €402M contrasts with thin net income (€2.74M) and negative operating cash flow (-€64.3M), indicating margin pressures. High total debt (€374M) against modest cash reserves (€47M) raises leverage concerns. The lack of dividends may deter income-focused investors. While its niche market expertise offers competitive advantages, macroeconomic risks in European real estate and financing constraints warrant caution.
Réalités SA competes in a fragmented regional real estate market, leveraging deep local knowledge and multi-segment capabilities (housing, commercial, senior living). Its competitive edge lies in integrated project development services for both private and public clients, a model that fosters long-term partnerships. However, the company faces stiff competition from larger national developers with greater financial resources and geographic diversification. Its regional concentration, while reducing exposure to volatile urban markets, also limits growth potential compared to peers operating across France. The negative operating cash flow suggests inefficiencies in working capital management, a vulnerability against more financially disciplined competitors. Strengths include a diversified project portfolio and government collaboration experience, but scalability remains constrained by its debt-heavy balance sheet. The company must improve operational cash generation to strengthen its position against national players expanding into regional markets.