| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 51.57 | 1853 |
| Intrinsic value (DCF) | 1.69 | -36 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 48.78 | 1748 |
Electricité et Eaux de Madagascar SA (EEM.PA) is a diversified holding company with operations spanning luxury hotels in Cambodia, real estate, paper manufacturing, and casinos. Headquartered in Paris, France, the company was originally founded in 1928 and rebranded from Viktoria Invest SA in 2019. Despite its name, EEM.PA no longer focuses on utilities but instead manages a portfolio of high-end hospitality and leisure assets, primarily in Southeast Asia. The company operates in the Financial Services sector under the Asset Management industry, leveraging its investments to generate returns across multiple business verticals. With a market capitalization of approximately €20.3 million, EEM.PA remains a niche player with exposure to Cambodia's growing tourism and gaming sectors. Its financial performance has been challenged, reporting negative net income and operating cash flow, but its cash reserves provide some financial flexibility.
Electricité et Eaux de Madagascar SA presents a high-risk, speculative investment opportunity due to its negative earnings (€-7.23 million net income in the latest period) and inconsistent cash flow. The company's diversified but small-scale operations in Cambodia's luxury hospitality and gaming sectors offer growth potential, but execution risks and macroeconomic vulnerabilities in emerging markets remain concerns. With no dividend payouts and a negative EPS (-€1.26), the stock may appeal only to investors seeking exposure to Southeast Asia's tourism recovery. The company's €12.58 million cash position provides a short-term buffer, but sustained losses could erode liquidity. Given its low market cap and illiquidity, EEM.PA is suitable only for highly risk-tolerant investors.
Electricité et Eaux de Madagascar SA operates in a fragmented and highly competitive landscape. Its luxury hotel and casino businesses compete with established regional players in Cambodia, such as NagaCorp, which dominates the gaming sector. EEM.PA's real estate and paper manufacturing segments lack scale compared to industry leaders, limiting pricing power. The company's competitive advantage lies in its niche positioning in Cambodia's upscale hospitality market, but its small size and lack of vertical integration weaken its bargaining power. Unlike larger asset managers, EEM.PA does not have a diversified global portfolio, increasing its reliance on Cambodian market conditions. Its financial instability (negative operating cash flow of €-2.78 million) further undermines its ability to invest in growth or compete with deeper-pocketed rivals. Without a clear strategic focus or economies of scale, EEM.PA struggles to differentiate itself in either the hospitality or financial services sectors.