| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 50.69 | 2293 |
| Intrinsic value (DCF) | 1.13 | -47 |
| Graham-Dodd Method | 3.50 | 65 |
| Graham Formula | 1.72 | -19 |
Euroapi S.A. is a leading European developer, manufacturer, and distributor of active pharmaceutical ingredients (APIs) and intermediates for human and veterinary medicines. Headquartered in Paris, France, and listed on Euronext Paris, Euroapi plays a critical role in the pharmaceutical supply chain by providing high-quality APIs essential for drug formulation. Established in 2021, the company operates in the healthcare sector, specifically within the medical devices and pharmaceutical ingredients industry. Euroapi serves a global clientele, including major pharmaceutical companies, and focuses on innovation, regulatory compliance, and sustainable manufacturing practices. With a revenue of €919.2 million in its latest fiscal year, Euroapi is positioned as a key player in the API market, contributing to the accessibility and affordability of essential medicines worldwide. The company's strategic focus on research and development, coupled with its strong European manufacturing base, enhances its competitive edge in a rapidly evolving pharmaceutical landscape.
Euroapi S.A. presents a mixed investment profile. On one hand, the company operates in a critical and growing segment of the pharmaceutical industry, with a revenue base of €919.2 million, indicating strong market demand for its APIs. However, the company reported a net loss of €130.6 million and negative diluted EPS of €1.36, reflecting operational challenges or high costs. The positive operating cash flow of €122.9 million suggests underlying business viability, but significant capital expenditures (€108 million) and a modest cash position (€73 million) relative to total debt (€69.1 million) may raise liquidity concerns. The lack of dividends and a beta of 0.653 indicate lower volatility but limited income appeal. Investors should weigh Euroapi's strategic position in the API market against its current financial performance and sector-specific risks, such as regulatory pressures and competition.
Euroapi S.A. competes in the highly specialized and regulated API market, where differentiation is driven by quality, regulatory compliance, and cost efficiency. The company benefits from its European manufacturing base, which ensures proximity to key pharmaceutical markets and adherence to stringent EU regulatory standards. This geographic advantage is critical given increasing global scrutiny of API supply chains, particularly post-pandemic. Euroapi's focus on both human and veterinary APIs diversifies its revenue streams, though it faces intense competition from larger, more established players with broader portfolios and greater R&D resources. The company's relatively recent inception (2021) means it lacks the long-term client relationships and scale of some competitors, but its agility and modern infrastructure could be assets in a rapidly innovating sector. Challenges include pricing pressures from generic API manufacturers, particularly in Asia, and the capital-intensive nature of API production, which may strain margins. Euroapi's ability to invest in high-value niche APIs and biosimilars will be crucial for sustaining competitiveness against both low-cost producers and innovators.