Stock Analysis & Valuation Galimmo SCA (GALIM.PA)

• Previous Close: €14.83
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	9.25	-38
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Galimmo SCA is a French real estate investment company specializing in the ownership and management of shopping malls across Europe. Headquartered in Paris and incorporated in 1902, the company operates under its parent entity, Galimmo Real Estate. As of December 2020, Galimmo managed a portfolio of 56 shopping malls, positioning it as a niche player in the European retail real estate sector. The company, formerly known as C&Co SCA, rebranded in 2016 to reflect its strategic focus on commercial property assets. Galimmo SCA is listed on Euronext Paris (GALIM.PA) and caters to investors seeking exposure to European retail real estate, albeit with a relatively small market capitalization of approximately €481 million. The company’s performance is closely tied to the health of the retail sector, e-commerce trends, and consumer spending patterns in Europe.

Investment Summary

Galimmo SCA presents a mixed investment profile. On the positive side, the company offers a dividend yield, with a payout of €0.36 per share, which may appeal to income-focused investors. However, its financials reveal challenges, including a net loss of €1.3 million in the latest fiscal year and negative diluted EPS (-€0.0403). The company’s beta of 0.002 suggests minimal correlation with broader market movements, potentially offering defensive characteristics. Key risks include exposure to the struggling European retail real estate sector, high leverage (total debt of €204.8 million against cash reserves of €58.8 million), and vulnerability to e-commerce disruption. Investors should weigh the dividend appeal against the company’s weak profitability and sector headwinds.

Competitive Analysis

Galimmo SCA operates in a highly competitive European retail real estate market dominated by larger, diversified players. Its competitive positioning is constrained by its relatively small scale (56 properties) and geographic concentration in Europe. The company’s niche focus on shopping malls exposes it to structural declines in foot traffic due to e-commerce growth, unlike competitors with mixed-use or logistics-heavy portfolios. Galimmo’s modest market cap (€481 million) limits its ability to compete with giants like Unibail-Rodamco-Westfield in terms of asset quality and development capabilities. However, its subsidiary structure under Galimmo Real Estate may provide some operational synergies. The company’s low beta indicates it is less volatile than peers, possibly appealing to risk-averse investors. Its dividend policy is a differentiating factor, but sustaining payouts may be challenging given its negative earnings. Galimmo lacks the international diversification or alternative asset classes (e.g., offices, residential) that insulate larger competitors from retail sector downturns.

Major Competitors

• Unibail-Rodamco-Westfield (URW.AS): Unibail-Rodamco-Westfield is a global leader in retail real estate with premier assets across Europe and the US. Its scale and high-quality portfolio (including flagship Westfield malls) give it superior pricing power and tenant diversification compared to Galimmo. However, URW’s heavy debt load and exposure to high-end retail make it vulnerable to economic downturns. Unlike Galimmo, URW has struggled with dividend cuts post-pandemic.
• Klépierre (KLO.VI): Klépierre is a French retail REIT with a pan-European portfolio of ~100 shopping centers. Its larger scale and stronger balance sheet (investment-grade rated) provide better access to capital than Galimmo. Klépierre’s focus on grocery-anchored centers offers more resilience against e-commerce, but its higher valuation multiples limit yield appeal compared to Galimmo’s dividend.
• Cofinimmo (COFB.BR): Cofinimmo specializes in healthcare and office real estate, making it less comparable to Galimmo’s retail focus. However, its defensive sector mix and stable cash flows highlight Galimmo’s relative riskiness. Cofinimmo’s lower leverage (LTV ~40%) and higher credit rating contrast with Galimmo’s weaker financial position.
• Icade (ICAD.PA): Icade is a diversified French real estate company with offices, healthcare, and retail assets. Its mixed portfolio reduces reliance on retail, unlike Galimmo. Icade’s development capabilities and stronger EBITDA margins (~60%) outshine Galimmo, but its complex corporate structure (partly owned by Caisse des Dépôts) may deter some investors.