| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 48.20 | 363 |
| Intrinsic value (DCF) | 7.96 | -23 |
| Graham-Dodd Method | 8.94 | -14 |
| Graham Formula | n/a |
Crosswood SA (CROS.PA) is a French commercial real estate company specializing in the management and ownership of retail, office, and residential properties. Headquartered in Paris and established in 1935, the company operates as a subsidiary of Compagnie Financière de Brocéliande. Crosswood’s portfolio primarily consists of income-generating assets in France, positioning it within the competitive Real Estate - Services sector. With a market capitalization of approximately €114.8 million, the company focuses on stable cash flow generation through long-term leases and strategic property acquisitions. Crosswood’s historical roots and localized expertise provide a strong foundation in the French real estate market, though its relatively small scale limits diversification compared to larger peers. Investors seeking exposure to French commercial real estate may find Crosswood an intriguing niche player with steady, albeit modest, financial performance.
Crosswood SA presents a mixed investment profile. On the positive side, the company maintains a debt-light balance sheet (€108k total debt) with €5.45 million in cash reserves, suggesting financial stability. Its net income of €5.46 million (€0.51 diluted EPS) and operating cash flow of €1.99 million indicate profitability, though revenue (€888k) appears unusually low relative to net income, warranting closer scrutiny of accounting practices. The 3.9% dividend yield (€0.10/share) may appeal to income-focused investors. However, the company’s small market cap and limited portfolio diversification increase concentration risk. A beta of 1.168 implies higher volatility than the broader market. Crosswood’s investment case hinges on its ability to capitalize on French commercial real estate opportunities, but its niche scale may deter investors seeking growth or geographic diversification.
Crosswood SA operates in a highly fragmented and competitive segment of the French commercial real estate market. Its primary competitive advantage lies in its localized expertise and long-standing presence (since 1935), which facilitates relationships with tenants and local authorities. The company’s lean debt structure (near-zero net debt) provides flexibility in a rising interest rate environment, unlike more leveraged peers. However, Crosswood’s small scale (€114.8M market cap) limits its ability to compete for large-scale assets or diversify across property types/regions compared to French REITs (SIICs) like Gecina or Unibail-Rodamco-Westfield. Its focus on stabilized, income-generating assets reduces development risk but also caps growth potential. Crosswood’s subsidiary status under Compagnie Financière de Brocéliande may provide strategic support but could also prioritize parent-level objectives over minority shareholder interests. The company’s lack of capital expenditures suggests a static portfolio strategy, potentially missing value-add opportunities that larger competitors pursue through redevelopments or ESG upgrades.