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Stock Analysis & ValuationCompagnie des Alpes S.A. (CDA.PA)

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Previous Close
26.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)12.76-51
Intrinsic value (DCF)8.92-66
Graham-Dodd Method8.48-67
Graham Formula32.7326

Strategic Investment Analysis

Company Overview

Compagnie des Alpes SA (CDA.PA) is a leading European leisure company specializing in ski resorts and theme parks. Headquartered in Paris, France, the company operates iconic ski destinations such as La Plagne, Les Arcs, and Val d'Isère, alongside renowned leisure parks like Parc Astérix and Futuroscope. With a diversified portfolio across the Ski Areas and Leisure Parks segments, Compagnie des Alpes capitalizes on tourism demand in France and neighboring countries. The company also engages in real estate development and consulting services through its Holdings and Supports segment. Founded in 1989, Compagnie des Alpes has established itself as a key player in the European leisure industry, benefiting from strong brand recognition and strategic locations. Its operations cater to both domestic and international tourists, positioning it well in the consumer cyclical sector. The company’s integrated approach—combining ski lift operations, park management, and real estate—enhances revenue stability and growth potential.

Investment Summary

Compagnie des Alpes presents a mixed investment profile. On the positive side, the company benefits from strong brand equity in ski resorts and leisure parks, with high-margin operations in premium destinations. Its diversified revenue streams (ticketing, real estate, and ancillary services) provide resilience against seasonal fluctuations. However, the company carries significant debt (€1.5B) relative to its market cap (~€892M), and its beta of 1.33 indicates higher volatility tied to discretionary consumer spending. The dividend yield (~2.2% based on a €1/share payout) is modest but sustainable given steady operating cash flow (€341M in FY). Investors should weigh exposure to tourism cyclicality and climate-related risks (e.g., low snowfall) against the company’s market leadership in European leisure.

Competitive Analysis

Compagnie des Alpes holds a competitive edge through its geographically concentrated yet high-demand ski resorts and theme parks. Its ski operations dominate the French Alps, with premium brands like Val d'Isère and Méribel attracting affluent clientele. The Leisure Parks segment benefits from unique IP (e.g., Parc Astérix’s comic-themed attractions) and regional monopolies (e.g., Futuroscope). However, the company faces stiff competition in both segments. In ski resorts, rivals like Compagnie du Mont-Blanc (privately held) and international operators such as Vail Resorts (NYSE: MTN) leverage scale and global pass programs. Theme parks compete with Disneyland Paris (NYSE: DIS) and Europa-Park (privately held), which have stronger international appeal. CDA’s real estate monetization strategy (selling land near resorts) differentiates it but relies on robust property markets. The company’s scale in Europe is an advantage, but its lack of diversification beyond France/Benelux limits growth compared to global peers. Operational efficiency and high visitor loyalty partially offset these risks.

Major Competitors

  • Vail Resorts Inc (MTN): Vail Resorts is a global leader in ski resort operations, with a portfolio including Park City and Whistler Blackcomb. Its Epic Pass program drives recurring revenue and customer loyalty, giving it an edge in scale and marketing. However, Vail lacks Compagnie des Alpes’ European foothold and theme park diversification. Its heavy reliance on North American markets exposes it to regional economic shifts.
  • The Walt Disney Company (DIS): Disneyland Paris competes directly with CDA’s theme parks through superior IP (e.g., Marvel, Star Wars) and global brand recognition. Disney’s financial resources and cross-promotional capabilities are unmatched, but its high ticket prices and focus on international tourists make it less accessible to local visitors compared to CDA’s Parc Astérix.
  • Playtech PLC (PLA.L): Playtech’s subsidiary, Snaitech, operates leisure and betting services in Italy, overlapping marginally with CDA’s tourism-driven model. Playtech’s strength lies in digital gaming, but its physical leisure assets lack the scale or geographic concentration of CDA’s ski resorts and parks.
  • Merlin Entertainments PLC (MERL.L): Merlin (owner of Legoland) is a key competitor in themed attractions, with a broader international presence than CDA. Its strength lies in family-friendly parks and partnerships (e.g., Peppa Pig). However, Merlin has no ski resort operations, and its European parks (e.g., Alton Towers) face seasonal challenges similar to CDA’s.
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