| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 21.46 | 28 |
| Intrinsic value (DCF) | 8.17 | -51 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Getlink SE (formerly Groupe Eurotunnel) is a leading European infrastructure and transport operator, best known for managing the Channel Tunnel—a critical fixed link between the UK and France. Headquartered in Paris, the company operates through three key segments: Eurotunnel (passenger and freight shuttle services under the English Channel), Europorte (integrated rail freight services in France and beyond), and ElecLink (a 1 GW electricity interconnector between the UK and France). With a market cap of €9.36 billion, Getlink plays a pivotal role in cross-Channel logistics, energy connectivity, and rail transport. The company benefits from long-term concession agreements, recurring revenue streams, and strategic infrastructure assets. Its diversified operations span transport, energy, and ancillary services like telecommunications and insurance. As Europe's only fixed land link between the UK and the EU, Getlink holds a unique position in post-Brexit trade and passenger mobility, making it a vital player in the Industrials sector.
Getlink SE presents a compelling infrastructure investment with stable cash flows, underpinned by its monopoly-like position in cross-Channel transport. The company's €865M operating cash flow (FY 2023) supports its €0.55/share dividend (3.2% yield) and debt reduction efforts (€5.49B total debt). Key attractions include: 1) Recession-resistant demand for Channel Tunnel services, 2) Growth potential in ElecLink's energy interconnector, and 3) Limited competition in its core market. However, risks include exposure to UK-EU trade fluctuations, regulatory changes, and high leverage (debt/EBITDA ~5x). The stock's low beta (0.75) suggests defensive characteristics, but investors should monitor Brexit-related border controls and potential rail freight competition. With a P/E of ~18x, valuation appears fair given its infrastructure moat.
Getlink's competitive advantage stems from its irreplaceable physical infrastructure—the Channel Tunnel—which enjoys a legal monopoly until 2086. Unlike conventional railroads, its Eurotunnel segment faces no direct competition for vehicle shuttles, while rail freight competes indirectly with ferries and air cargo. The ElecLink interconnector benefits from first-mover advantage in UK-France electricity transmission. However, the company operates in a bifurcated competitive landscape: 1) In cross-Channel transport, it dominates vehicle shuttles but shares rail capacity with Eurostar (passengers) and DB Cargo (freight). 2) In rail freight (Europorte), it competes with state-backed operators like SNCF and private rivals. 3) In energy, ElecLink competes with other interconnectors but benefits from capacity auctions. Getlink's pricing power varies by segment—strong in shuttles (90%+ market share), moderate in rail freight, and regulated in energy. The company mitigates competition through vertical integration (owning terminals, tunnels, and trains) and strategic partnerships with rail operators. Its main vulnerability is demand elasticity—economic downturns or new ferry routes could impact volumes.