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Stock Analysis & ValuationTXCOM Group (ALTXC.PA)

Professional Stock Screener
Previous Close
8.60
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)38.30345
Intrinsic value (DCF)7.64-11
Graham-Dodd Method13.6058
Graham Formula9.5811

Strategic Investment Analysis

Company Overview

TXCOM Group (ALTXC.PA) is a France-based technology company specializing in the design, manufacture, and marketing of advanced communication products. Operating in the Communication Equipment industry, TXCOM provides a diverse portfolio of solutions, including thermal printing mechanisms, barcode scanners, RFID tagging, and security locks. The company serves both domestic and international markets, with a strong focus on logistics, transportation, and retail sectors. Headquartered in Le Plessis Robinson, TXCOM leverages its expertise in embedded firmware and electronic components to deliver high-performance, reliable products. With a market capitalization of approximately €11 million, TXCOM maintains a niche position in the competitive technology sector, emphasizing innovation and quality. The company's diversified product range and international presence make it a relevant player in the growing demand for automation and data capture solutions.

Investment Summary

TXCOM Group presents a mixed investment profile. On the positive side, the company demonstrates solid profitability with a net income of €1.1 million and a healthy operating cash flow of €1.45 million in the latest fiscal year. Its negligible debt (€79,993) and strong cash position (€6.94 million) provide financial stability. However, the company's small market cap (~€11 million) and low beta (0.257) suggest limited liquidity and lower volatility, which may deter some investors. The absence of dividends could also reduce appeal for income-focused investors. While TXCOM operates in growing segments like RFID and thermal printing, its niche positioning and modest revenue (~€10 million) may limit scalability. Investors should weigh its stable financials against its relatively small scale and sector competition.

Competitive Analysis

TXCOM Group competes in the specialized communication equipment market, where it differentiates itself through a diversified product portfolio and strong technical expertise in thermal printing and data capture solutions. The company's competitive advantage lies in its ability to provide integrated hardware and firmware solutions, particularly for logistics and retail applications. However, its small size (~€10M revenue) limits R&D and global distribution capabilities compared to larger peers. TXCOM's focus on niche markets (e.g., RFID tagging, kiosk printers) helps avoid direct competition with broad-line tech giants, but it faces pressure from regional players with similar offerings. The company's financial stability (high cash reserves, minimal debt) provides resilience, but its growth potential is constrained by its limited scale. Its French base offers EU market access but may limit exposure to faster-growing APAC and North American markets. While TXCOM's profitability metrics are solid, its ability to invest in innovation and expand beyond its current segments will be critical for long-term competitiveness.

Major Competitors

  • Zebra Technologies (ZBRA): Zebra Technologies is a global leader in barcode printing and RFID solutions, with significantly larger scale (~$5.8B revenue) and broader product range than TXCOM. Its strengths include strong brand recognition and extensive R&D resources, but it may lack TXCOM's agility in niche European markets. Zebra's focus on enterprise clients contrasts with TXCOM's mixed customer base.
  • Data Call Technologies (DATC.PA): A French peer specializing in data capture and auto-ID solutions, Data Call overlaps with TXCOM in barcode scanning and RFID. Its smaller size (~€5M revenue) makes it less competitive in thermal printing, but it poses a threat in local logistics markets. TXCOM's stronger financials (higher profitability, cash reserves) give it an edge.
  • T42 IoT Tracking Solutions (TTOO.L): T42 focuses on IoT and RFID tracking, competing indirectly with TXCOM's tagging solutions. Its UK base and AIM listing provide different market access, but its narrower product focus and smaller scale (~£3M revenue) limit its threat level. TXCOM's diversified portfolio offers more stability.
  • Priority Technology Holdings (PRTH): Priority offers payment and commerce solutions, overlapping with TXCOM in retail-facing hardware. Its US focus and larger scale (~$700M revenue) make it less of a direct competitor, but its integrated software-hardware approach could pressure TXCOM in omnichannel retail segments.
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