| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 70.93 | -67 |
| Intrinsic value (DCF) | 75.56 | -65 |
| Graham-Dodd Method | 45.03 | -79 |
| Graham Formula | n/a |
Électricité de Strasbourg SA (ELEC.PA) is a leading French utility company specializing in electricity and natural gas supply, serving individuals, businesses, and local authorities in France. Founded in 1899 and headquartered in Strasbourg, the company operates as a subsidiary of EDF Développement Environnement SA. Beyond energy distribution, Électricité de Strasbourg is involved in electrical engineering, industrial and public lighting, heating networks, collective catering engineering, energy renovation services, and technical management of energy installations. As part of the Renewable Utilities sector, the company plays a crucial role in France's energy transition, focusing on sustainable and efficient energy solutions. With a market capitalization of approximately €1.08 billion, Électricité de Strasbourg combines regional expertise with the backing of a major energy group, positioning it as a key player in France's utility landscape.
Électricité de Strasbourg presents a stable investment opportunity within the regulated utility sector, characterized by predictable cash flows and a low beta of 0.316, indicating lower volatility compared to the broader market. The company reported €1.42 billion in revenue and €150.4 million in net income for the latest fiscal period, with a solid diluted EPS of €20.98. Its strong operating cash flow of €203.4 million supports a healthy dividend payout of €8.6 per share. However, investors should consider the regulatory risks inherent in the utilities sector and the company's exposure to France's energy policies. The backing by EDF provides stability, but growth may be constrained by the mature nature of the French energy market.
Électricité de Strasbourg benefits from its regional monopoly in electricity and gas distribution in the Alsace region, providing a stable revenue base. Its integration within the EDF group offers synergies in procurement, technology, and regulatory compliance, enhancing its competitive positioning. The company's involvement in energy renovation and public lighting projects differentiates it from pure-play utilities, adding value through diversified service offerings. However, its regional focus limits geographic diversification, making it vulnerable to local economic conditions. The French utility market is highly regulated, which ensures steady returns but caps profitability. Électricité de Strasbourg's competitive advantage lies in its long-standing customer relationships and expertise in energy efficiency solutions, though it faces competition from larger national players and emerging renewable energy providers.