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Stock Analysis & ValuationLes Docks des Pétroles d'Ambès -SA (DPAM.PA)

Professional Stock Screener
Previous Close
850.00
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)562.55-34
Intrinsic value (DCF)550.16-35
Graham-Dodd Methodn/a
Graham Formula1038.0722

Strategic Investment Analysis

Company Overview

Les Docks des Pétroles d'Ambès SA (DPAM.PA) is a specialized French company engaged in the storage and shipping of petroleum products, including diesel, biofuels, jet fuel, technical fuels, and maritime fuels. Founded in 1930 and headquartered in Carbon-Blanc, France, the company operates in the Oil & Gas Refining & Marketing sector, serving clients primarily through tank truck and rail car logistics. With a market capitalization of approximately €72.9 million, DPAM plays a critical role in France's energy infrastructure, ensuring efficient fuel distribution. The company's strong operational cash flow of €7.5 million in 2023 and a debt-free balance sheet underscore its financial stability. DPAM's niche focus on petroleum storage and logistics positions it as a key player in France's energy supply chain, benefiting from consistent demand for fuel distribution services.

Investment Summary

Les Docks des Pétroles d'Ambès presents a stable investment opportunity with low volatility (beta of 0.229) and a solid dividend yield, paying €41 per share in 2023. The company's debt-free status and consistent profitability (net income of €4.3 million in 2023) enhance its appeal to conservative investors. However, its small market cap and limited revenue growth (€19.1 million in 2023) suggest a niche player with modest expansion prospects. The company's reliance on the French petroleum storage market exposes it to regional economic fluctuations and regulatory risks in the energy sector. Investors seeking steady income and low-risk exposure to energy logistics may find DPAM attractive, but those looking for high growth should consider broader industry players.

Competitive Analysis

Les Docks des Pétroles d'Ambès operates in a specialized segment of petroleum storage and logistics, differentiating itself through regional expertise and a focused service model. Its competitive advantage lies in its long-standing presence in France (since 1930) and its ability to serve diverse fuel types, including biofuels and maritime fuels. The company's debt-free balance sheet and strong cash flow generation provide financial flexibility, allowing it to reinvest in infrastructure without leverage risks. However, its small scale limits its ability to compete with larger multinational storage and logistics firms. DPAM's niche positioning shields it from direct competition with global oil majors but also caps its growth potential. The company's profitability metrics (EPS of €43.93) reflect efficient operations, though its reliance on the French market makes it vulnerable to local regulatory changes and energy transition policies. Its lack of international presence contrasts with larger competitors who benefit from diversified geographic operations.

Major Competitors

  • VTTI Energy Partners (VTTI.AS): VTTI operates a global network of fuel storage terminals, offering greater scale and geographic diversification compared to DPAM. Its strengths include strategic locations in key energy hubs, but its higher leverage and exposure to volatile international markets present risks.
  • BP Plc (Storage Division) (BPT.L): BP's storage and logistics division benefits from integration with its upstream and downstream operations, providing cost advantages. However, its broader focus on oil production and refining dilutes its specialization in storage compared to DPAM's dedicated model.
  • TotalEnergies SE (Storage Operations) (TOTF.PA): TotalEnergies has extensive storage infrastructure in France, competing directly with DPAM. Its strengths include vertical integration and renewable energy investments, but its larger corporate structure may lack the agility of DPAM's focused operations.
  • Royal Vopak (RPLA.AS): Vopak is a global leader in tank storage, with a much larger footprint than DPAM. Its diversified client base and chemical storage capabilities are strengths, but its exposure to cyclical industries adds volatility compared to DPAM's stable French market focus.
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