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Stock Analysis & ValuationAramis Group SAS (ARAMI.PA)

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Previous Close
4.61
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)21.18359
Intrinsic value (DCF)47.67934
Graham-Dodd Method1.82-61
Graham Formula1.36-70

Strategic Investment Analysis

Company Overview

Aramis Group SAS is a leading European online used car retailer, operating under the brands Aramisauto (France, Belgium), Clicars (Spain), and CarSupermarket (UK). Founded in 2001 and headquartered in Arcueil, France, the company specializes in the digital sale of pre-owned vehicles, offering a seamless online purchasing experience with home delivery options. Aramis Group leverages its proprietary technology and data-driven pricing models to provide competitive pricing and transparency in the fragmented used car market. As part of the Consumer Cyclical sector and Auto - Dealerships industry, the company benefits from the growing shift toward e-commerce in automotive retail. With a presence in key European markets, Aramis Group is well-positioned to capitalize on increasing demand for affordable, high-quality used cars. The company’s omni-channel approach, combining online convenience with selective physical locations, enhances customer trust and market penetration.

Investment Summary

Aramis Group presents a compelling investment case as a digital disruptor in the European used car market, benefiting from the structural shift toward online vehicle sales. The company’s scalable platform, strong brand recognition, and asset-light model support margin expansion potential. However, risks include intense competition from both traditional dealerships and digital-first rivals, as well as macroeconomic sensitivity affecting discretionary auto purchases. With a market cap of €641 million, modest profitability (net income of €5 million in FY2023), and a beta of 0.37, Aramis offers moderate volatility exposure. The lack of dividends may deter income-focused investors, but growth-oriented stakeholders could find value in its revenue trajectory (€2.24 billion in FY2023) and cash flow generation (€54 million operating cash flow).

Competitive Analysis

Aramis Group’s competitive advantage lies in its pure-play online model, which reduces overhead costs compared to traditional dealerships while offering convenience and transparency. Its proprietary pricing algorithms and centralized inventory management enable competitive pricing and efficient logistics across markets. The company’s multi-brand strategy (Aramisauto, Clicars, CarSupermarket) allows localized market penetration while maintaining operational synergies. However, it faces pressure from vertically integrated competitors like Auto1 Group, which combines wholesale and retail operations, and OEM-backed platforms (e.g., Stellantis’s used car programs). Aramis’s lack of a significant physical footprint may limit appeal to customers preferring test drives, though its partnerships with inspection centers mitigate this. The UK’s CarSupermarket brand competes in a crowded value segment, while continental brands target mid-market buyers with certified vehicles. Scalability is a strength, but reliance on third-party vehicle sourcing could constrain margin control versus competitors with owned inventory channels.

Major Competitors

  • Auto1 Group SE (AG1.DE): Auto1 Group dominates Europe’s wholesale used car market via its AUTO1.com platform, with stronger B2B logistics but less retail focus than Aramis. Its scale (€6.6 billion FY2022 revenue) and proprietary pricing tech are strengths, but profitability challenges persist (€-190m net income FY2022). Unlike Aramis, Auto1 relies heavily on dealer networks.
  • Cazoo Group Ltd (CARG.L): Cazoo is a UK-centric online used car retailer with aggressive marketing but significant losses (£-704m FY2021). Its vertically integrated model (reconditioning centers) contrasts with Aramis’s asset-light approach. Cazoo’s recent restructuring indicates operational challenges, though its brand recognition rivals CarSupermarket in the UK.
  • Shift Technologies Inc. (SHIFT.AS): Shift operates a hybrid online/physical model in select European markets, similar to Aramis’s inspection partnerships. Its AI-driven valuation tools are competitive, but smaller scale (€129m FY2022 revenue) and geographic overlap in Spain (via Clicars) make it a direct rival. Shift’s Nasdaq delisting in 2023 highlights financial instability.
  • Dr. Ing. h.c. F. Porsche AG (P911.DE): Porsche’s certified pre-owned (CPO) program competes with Aramis’s premium segment. While not a pure online player, Porsche’s OEM-backed CPO offers brand loyalty advantages and higher margins. Aramis counters with multi-brand inventory and lower price points, appealing to broader demographics.
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