Stock Analysis & Valuation Upergy S.A. (ALUPG.PA)

• Previous Close: €2.04
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	283.29	13787
Intrinsic value (DCF)	0.86	-58
Graham-Dodd Method	1.36	-33
Graham Formula	0.09	-96

Strategic Investment Analysis

Company Overview

UPERGY SA (ALUPG.PA) is a France-based specialty retail company operating in the consumer cyclical sector. Headquartered in Champagne-au-Mont-d'Or, UPERGY distributes batteries, chargers, portable lighting, solar solutions, and security-related products under well-known brands such as Allbatteries, 1001 Piles BATTERY BATTERIES, Enix Energies, Enix Power Solutions, Hawk-Woods, and Microbatt. Founded in 1996 and formerly known as VDI Group, the company rebranded to UPERGY in 2018. UPERGY serves a diverse customer base, including professionals, individuals, small retailers, companies, and wholesalers, both in France and internationally. With a market capitalization of approximately €7.4 million, UPERGY plays a niche but essential role in the energy storage and portable power solutions market. The company’s focus on sustainable energy products, including solar solutions, positions it well in the growing renewable energy sector.

Investment Summary

UPERGY SA presents a mixed investment profile. On the positive side, the company operates in a stable niche market with diversified revenue streams from battery and energy-related products. Its €0.55 dividend per share may appeal to income-focused investors. However, the company’s financials reveal challenges, including thin net income (€89,413) and high total debt (€7.4 million) relative to its market cap. The low beta (0.288) suggests lower volatility compared to the broader market, which could be attractive to conservative investors. Risks include competitive pressures in the specialty retail space and potential margin compression from rising input costs. Investors should weigh the modest dividend yield against the company’s limited earnings growth and leverage.

Competitive Analysis

UPERGY SA competes in the fragmented battery and portable power solutions market, where differentiation is key. The company’s multi-brand strategy (Allbatteries, Enix, Hawk-Woods, etc.) allows it to target various customer segments, from professionals to individual consumers. Its focus on solar and renewable energy products provides a competitive edge as demand for sustainable solutions grows. However, UPERGY faces stiff competition from larger retailers and e-commerce platforms that offer broader product ranges and economies of scale. The company’s relatively small size (€42.9 million revenue) limits its bargaining power with suppliers and its ability to invest in large-scale marketing or distribution networks. Its strength lies in specialized distribution and brand recognition in France, but international expansion remains a challenge. The high debt load (€7.4 million) could constrain financial flexibility compared to cash-rich competitors. UPERGY’s ability to maintain profitability in a low-margin industry will depend on operational efficiency and niche market retention.

Major Competitors

• Colruyt Group (COLR.BR): Colruyt operates in the broader retail sector, including battery sales through its discount stores. Its scale and diversified revenue streams give it pricing power, but it lacks UPERGY’s specialization in energy solutions. Colruyt’s strong supply chain is a key advantage.
• Amazon (AMZN): Amazon dominates online battery and portable power sales with vast selection and fast delivery. Its global reach and logistics network are unmatched, but it lacks UPERGY’s specialized brand focus and professional customer relationships.
• Fnac Darty (FNAC.PA): Fnac Darty sells batteries and chargers as part of its consumer electronics retail business. Its strong French retail presence competes with UPERGY, but it does not specialize in energy solutions or professional markets.
• Energizer Holdings (ENR): Energizer is a global leader in batteries and portable power, with strong brand recognition. Its scale and R&D capabilities outpace UPERGY, but it focuses more on mass-market retail rather than specialized distribution.
• Vestas Wind Systems (VWS.CO): Vestas competes indirectly in renewable energy solutions, including solar and storage. Its large-scale projects differ from UPERGY’s retail focus, but it represents competition in the broader sustainable energy market.