| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 267.32 | 114 |
| Intrinsic value (DCF) | 76.14 | -39 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 168.32 | 35 |
Eiffage SA is a leading French construction and infrastructure company with a diversified business model spanning construction, infrastructure, energy systems, and concessions. Headquartered in Vélizy-Villacoublay, France, Eiffage operates both domestically and internationally, offering services in urban development, building construction, civil engineering, road and rail infrastructure, and energy systems. The company's Concessions segment is particularly notable, managing motorways and large infrastructure projects under public-private partnerships. With a history dating back to 1920, Eiffage has established itself as a key player in the European engineering and construction sector. The company's integrated approach—combining design, construction, and long-term maintenance—positions it well in an industry increasingly focused on sustainability and lifecycle management. Eiffage's strong cash position and diversified revenue streams make it a resilient player in the Industrials sector.
Eiffage SA presents a compelling investment case due to its diversified revenue streams, strong cash position (€6.03 billion), and stable dividend yield (€4.7 per share). The company's concessions business provides long-term cash flow visibility, while its construction and infrastructure segments benefit from European infrastructure spending. However, risks include high total debt (€16.7 billion) and exposure to cyclical construction demand. With a beta of 1.02, Eiffage's stock tends to move with the market, offering moderate risk-adjusted returns. The company's €24 billion revenue and €1.04 billion net income (2024) reflect operational scale, but investors should monitor France's public investment climate and PPP policies.
Eiffage's competitive advantage lies in its vertically integrated model—combining construction, concessions, and energy systems—which allows it to bid on complex, multi-phase infrastructure projects. Its concessions segment (e.g., operating toll roads) provides annuity-like cash flows that stabilize earnings, a rarity among pure-play construction firms. The company's strong foothold in France (where it holds ~15% market share in construction) grants it preferential access to public works contracts. However, Eiffage faces margin pressure in its construction business (typical EBIT margins of 5-6%) compared to more specialized engineering firms. Its international presence remains limited versus global peers, with ~80% of revenue from France. The company's €3.7 billion operating cash flow demonstrates efficient working capital management, crucial in the capital-intensive construction sector. Eiffage's PPP expertise is a key differentiator, but reliance on French government spending (~50% of revenue) creates concentration risk.