| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.78 | -34 |
| Intrinsic value (DCF) | 20.80 | -65 |
| Graham-Dodd Method | 7.40 | -88 |
| Graham Formula | 27.19 | -55 |
Aubay SA (AUB.PA) is a leading European digital services company specializing in IT consulting, digital transformation, and cloud solutions. Headquartered in Boulogne-Billancourt, France, Aubay operates across Belgium, Luxembourg, Spain, Portugal, Italy, and France, serving diverse sectors including banking, insurance, public services, telecom, retail, and more. The company offers a comprehensive suite of services such as management consulting, IT infrastructure and security, big data analytics, digital marketing, and agile DevOps solutions. Founded in 1997, Aubay has established itself as a trusted partner for enterprises undergoing digital transformation, leveraging emerging technologies like AI, blockchain, and RPA. With a market cap of approximately €596 million, Aubay combines deep industry expertise with innovative digital solutions, positioning it as a key player in Europe's competitive IT services landscape. Its strong presence in high-growth markets and commitment to operational excellence make it a compelling choice for businesses seeking end-to-end digital enablement.
Aubay presents a moderately attractive investment opportunity with a balanced risk-reward profile. The company operates in the growing IT services sector, benefiting from increasing demand for digital transformation and cloud solutions across Europe. With a market cap of €596M and a beta of 1.056, Aubay exhibits slightly higher volatility than the market. Its FY2024 financials show solid revenue of €540M and net income of €37.6M, with a diluted EPS of €2.93. The company maintains a healthy balance sheet with €84.7M in cash and €21M in total debt, indicating manageable leverage. Operating cash flow of €55M supports its €1.30 dividend per share, appealing to income-focused investors. However, competition from larger global IT service providers and regional players could pressure margins. Investors should weigh Aubay's strong European footprint against potential macroeconomic headwinds in its core markets.
Aubay competes in the fragmented European IT services market, differentiating itself through deep sector expertise and a comprehensive digital services portfolio. Its competitive advantage lies in its strong regional presence across key Western European markets, allowing for localized service delivery combined with multinational scalability. The company's focus on high-growth areas like cloud infrastructure, cybersecurity, and AI-driven analytics positions it well against both global giants and smaller niche players. Aubay's vertical specialization in banking, insurance, and public sectors provides domain-specific insights that generalist competitors often lack. However, its mid-size scale may limit its ability to compete on large multinational contracts where global IT service providers dominate. The company compensates with agility and tailored solutions for European regulatory environments. Its hybrid delivery model balances on-site consulting with offshore capabilities, though it faces pricing pressure from lower-cost Eastern European and Indian competitors. Aubay's innovation labs focusing on emerging technologies demonstrate forward-looking capabilities, but require continued investment to maintain differentiation against better-funded rivals.