Stock Analysis & Valuation Umanis S.A. (ALUMS.PA)

• Previous Close: €17.15
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	2.95	-83
Graham Formula	14.37	-16

Strategic Investment Analysis

Company Overview

Umanis SA is a leading French digital services company specializing in big data, artificial intelligence, and IT consulting. Headquartered in Levallois-Perret, France, Umanis provides a comprehensive suite of services including data strategy, smart analytics, GDPR compliance, digital experience platforms, and business process outsourcing. The company serves diverse sectors such as healthcare, energy, retail, telecoms, and the public sector, helping clients optimize operations through digital transformation. Acquired by CGI France SAS in 2022, Umanis leverages its expertise in DevOps, CRM, HRMS, and cloud infrastructure to deliver tailored IT solutions. With a strong focus on innovation and compliance, Umanis plays a pivotal role in France's growing IT services market, catering to enterprises seeking scalable and secure digital solutions.

Investment Summary

Umanis SA presents a stable investment opportunity within the European IT services sector, supported by its niche expertise in big data and AI-driven solutions. The company's acquisition by CGI France SAS enhances its financial stability and market reach. However, its moderate beta (0.86) suggests alignment with broader market movements, and its modest net income (€12.2M) and operating cash flow (€26.9M) indicate steady but not explosive growth. Risks include reliance on the French market and competition from larger global IT service providers. The dividend yield (€0.26 per share) adds appeal for income-focused investors, but growth prospects may be limited without further international expansion.

Competitive Analysis

Umanis SA competes in the crowded IT services market, differentiating itself through specialized big data and AI offerings. Its acquisition by CGI France SAS strengthens its competitive position by providing access to broader resources and client networks. However, Umanis faces intense competition from global giants like Capgemini and Atos, which have larger scales and international footprints. The company's focus on GDPR compliance and sector-specific solutions (e.g., healthcare, retail) provides a defensible niche, but its reliance on the French market limits diversification. Umanis’s competitive edge lies in its agility and deep domain expertise, but it must continuously innovate to fend off rivals with superior R&D budgets. The firm’s profitability metrics (EPS: €0.66) are respectable but lag behind top-tier competitors, signaling room for operational efficiency improvements.

Major Competitors

• Capgemini SE (CAP.PA): Capgemini is a global leader in IT services with a strong presence in consulting and cloud solutions. Its scale and multinational reach dwarf Umanis, but it may lack the latter’s agility in niche AI and data governance services. Capgemini’s higher R&D spending gives it an edge in innovation but could lead to less personalized client solutions compared to Umanis.
• Atos SE (ATO.PA): Atos specializes in cybersecurity and hybrid cloud solutions, competing directly with Umanis in digital transformation services. While Atos has a broader European footprint, its recent financial struggles contrast with Umanis’s stable performance. Umanis’s focus on GDPR and sector-specific analytics may offer a more targeted value proposition.
• Dassault Systèmes SE (DSY.PA): Dassault Systèmes excels in 3D design and product lifecycle management software, overlapping with Umanis in manufacturing and data analytics. Its strong brand and R&D capabilities are superior, but Umanis’s BPO and infrastructure services provide a more diversified IT portfolio for mid-market clients.
• GFT Technologies SE (GFT.DE): GFT Technologies focuses on banking and insurance IT solutions, competing in data analytics and AI. While GFT has a stronger foothold in financial services, Umanis’s broader sector coverage (e.g., healthcare, retail) and French market dominance give it an edge in regional diversification.