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Stock Analysis & ValuationExacompta Clairefontaine S.A. (EXAC.PA)

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91.50
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method481.64426
Graham Formula188.80106

Strategic Investment Analysis

Company Overview

Exacompta Clairefontaine S.A. is a leading French manufacturer specializing in high-quality printing and writing papers, stationery, and office supplies. Founded in 1858 and headquartered in Etival-Clairefontaine, France, the company operates through two key segments: Paper and Processing. Exacompta Clairefontaine serves markets across Europe and internationally, offering a diverse product portfolio that includes diary and personal stationery, office supplies, filing items, and digital photo products. As a subsidiary of Etablissements Charles Nusse, the company benefits from a long-standing reputation for premium paper products and sustainable manufacturing practices. Operating in the Basic Materials sector under the Paper, Lumber & Forest Products industry, Exacompta Clairefontaine plays a crucial role in the stationery and paper goods market, catering to both consumer and professional needs. With a strong heritage and commitment to quality, the company remains a key player in the European paper industry.

Investment Summary

Exacompta Clairefontaine presents a stable investment opportunity with moderate risk, as indicated by its low beta of 0.51. The company reported solid revenue of €835.6 million in FY 2022, with net income of €27.1 million and diluted EPS of €23.91. However, operating cash flow of €22.6 million was offset by capital expenditures of €30.3 million, suggesting ongoing investments in operations. The company maintains a strong cash position (€118.7 million) and no reported debt, enhancing financial stability. A notable highlight is its substantial dividend per share (€370.12), which may appeal to income-focused investors. While the paper industry faces challenges from digitalization, Exacompta Clairefontaine’s diversified product range and established market presence provide resilience. Investors should weigh its stable fundamentals against sector-wide pressures.

Competitive Analysis

Exacompta Clairefontaine holds a competitive edge through its vertically integrated operations, combining paper production with high-value processing and finishing capabilities. This allows the company to maintain quality control and cost efficiencies across its product lines. Its long-standing brand reputation, particularly in premium stationery and office supplies, strengthens customer loyalty in both retail and B2B segments. The company’s focus on sustainable paper production aligns with growing environmental concerns, differentiating it from less eco-conscious competitors. However, Exacompta Clairefontaine operates in a mature industry with intense competition from larger multinational players and digital alternatives. Its regional concentration in Europe may limit growth compared to global competitors, though this also provides stability in its core markets. The lack of debt is a financial strength, but the company’s modest net income margin (~3.2%) suggests room for operational improvements. Its competitive positioning relies on niche high-quality products rather than cost leadership, which may limit market share gains but supports pricing power in premium segments.

Major Competitors

  • UPM-Kymmene Oyj (UPM.HE): UPM is a global leader in forest-based bioindustries, with a strong focus on sustainable paper and pulp production. Its scale and diversified product range (including packaging and labels) give it broader market reach than Exacompta Clairefontaine. However, UPM’s larger debt load and exposure to volatile pulp prices pose risks. Its innovation in renewable materials is a key strength.
  • Stora Enso Oyj (STORA.HE): Stora Enso is a major player in renewable packaging, biomaterials, and paper solutions. Its global footprint and R&D investments in circular economy solutions outpace Exacompta Clairefontaine’s capabilities. However, Stora Enso’s recent profitability challenges and restructuring costs highlight operational vulnerabilities. Its packaging segment competes indirectly with Exacompta’s stationery products.
  • Mondi plc (MNDI.L): Mondi specializes in packaging and paper, with a strong presence in Europe and emerging markets. Its integrated supply chain and cost efficiency make it a formidable competitor, though it lacks Exacompta’s focus on premium stationery. Mondi’s exposure to industrial packaging markets adds cyclicality risk but also diversification benefits.
  • Dassault Systèmes SE (DSY.PA): While not a direct competitor in paper products, Dassault Systèmes’ digital solutions (e.g., 3D design software) represent the broader threat of digitization to traditional paper demand. Its growth highlights the secular shift Exacompta Clairefontaine must navigate by emphasizing premium, tactile product experiences.
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