| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 7.45 | -21 |
| Graham Formula | 22.80 | 141 |
Catering International & Services SA (CTRG.PA) is a France-based company specializing in catering, accommodation, and facilities management services for high-demand sectors such as oil and gas, mining, construction, civil engineering, and armed forces. Founded in 1992 and headquartered in Marseille, the company operates across North Africa, Sub-Saharan Africa, Eurasia, the Middle East, and the Americas. Catering International & Services offers a comprehensive suite of services, including logistics, housekeeping, water treatment, waste management, and digital solutions like SystemONE, an integrated platform for site management. The company's diversified service portfolio and global footprint position it as a key player in the specialty business services sector within the industrials industry. With a strong focus on remote and challenging environments, Catering International & Services caters to clients requiring reliable and scalable support solutions.
Catering International & Services SA presents a niche investment opportunity in the industrial services sector, particularly for investors seeking exposure to specialized catering and facilities management in remote and high-risk regions. The company's diversified revenue streams and global operations mitigate some geographic risks, while its SystemONE digital solution enhances operational efficiency. However, the company's high beta (1.35) suggests volatility, and its reliance on the oil and gas sector exposes it to cyclical demand fluctuations. With a modest net income of €6.98 million in FY 2021 and a dividend payout, the company may appeal to income-focused investors, but its small market cap and sector-specific risks warrant caution.
Catering International & Services SA competes in a specialized segment of the industrial services market, focusing on remote and high-risk locations where few players operate. Its competitive advantage lies in its integrated service offerings, combining catering, accommodation, and facilities management under one umbrella, which is critical for clients in sectors like oil and gas. The company's SystemONE digital platform provides an edge in operational efficiency and client satisfaction. However, its reliance on the oil and gas industry makes it vulnerable to commodity price cycles. Competitors with broader geographic diversification or stronger balance sheets may outperform in downturns. The company's presence in Africa and the Middle East is a strength, but political and economic instability in these regions poses risks. Its ability to maintain contracts in volatile environments is a testament to its operational resilience, but scaling beyond its current footprint may be challenging due to intense competition from larger multinational service providers.