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Stock Analysis & ValuationIDI (IDIP.PA)

Professional Stock Screener
Previous Close
73.60
Sector Valuation Confidence Level
High
Valuation methodValue, Upside, %
Artificial intelligence (AI)83.4713
Intrinsic value (DCF)72.59-1
Graham-Dodd Methodn/a
Graham Formula219.26198

Strategic Investment Analysis

Company Overview

IDI is a leading French private equity firm specializing in leveraged buyouts, expansion capital, and investments in small and medium-sized enterprises (SMEs) across Europe. Founded in 1970 and headquartered in Paris, IDI focuses on both majority and minority stakes in companies with enterprise values ranging from €10 million to €300 million, though it can exceed this limit on a case-by-case basis. The firm invests across all sectors, deploying capital through direct investments and fund-of-funds strategies, targeting private equity funds and hedge funds. IDI’s investment approach includes mezzanine financing, discounted leveraged buyout loans, and pre-IPO financing, with deal sizes typically between €5 million and €25 million. The firm primarily operates in France and other developed European markets, leveraging its deep industry expertise to drive value creation in portfolio companies. With a market capitalization of approximately €530.7 million, IDI is a key player in the European mid-market private equity landscape, known for its disciplined investment strategy and long-term value generation.

Investment Summary

IDI presents an attractive investment opportunity for those seeking exposure to the European mid-market private equity sector. The firm’s diversified investment strategy, spanning leveraged buyouts, mezzanine financing, and fund-of-funds investments, provides resilience against sector-specific downturns. With a solid track record since 1970, IDI benefits from deep market knowledge and a strong network in France and broader Europe. However, risks include exposure to economic cycles, particularly in leveraged buyouts, and potential liquidity constraints given the illiquid nature of private equity investments. The firm’s recent financials show a net income of €19.58 million and a diluted EPS of €2.75, supported by a healthy cash position of €111.97 million. The dividend yield, at €2.8 per share, adds to its appeal, though investors should monitor debt levels (€58.07 million) and cash flow trends (operating cash flow was negative €17.3 million in the last period).

Competitive Analysis

IDI competes in a crowded European private equity market, where differentiation is driven by sector expertise, deal sourcing capabilities, and value-add operational improvements. Its competitive advantage lies in its long-standing presence (since 1970) and deep regional focus on France and developed European markets, allowing it to identify and execute on niche opportunities. The firm’s flexibility in taking both majority and minority positions, coupled with its ability to invest across the capital structure (equity, mezzanine, and senior debt), provides a diversified approach to risk management. However, IDI faces stiff competition from larger global private equity firms with greater fundraising capabilities and broader geographic reach. Its mid-market focus, while a strength in terms of deal flow, may limit scalability compared to mega-funds. The firm’s reliance on the European market also exposes it to regional economic volatility, though its sector-agnostic strategy mitigates some of this risk. IDI’s ability to generate consistent returns will depend on its capacity to source high-quality deals and add operational value in a competitive environment.

Major Competitors

  • Eurazeo (EPA:EF): Eurazeo is a larger French private equity firm with a global footprint, offering broader diversification across geographies and asset classes. It has stronger fundraising capabilities and a more extensive portfolio than IDI, but its focus on larger deals may limit agility in the mid-market segment where IDI excels.
  • Argan (EPA:ARG): Argan specializes in logistics real estate and infrastructure investments, differing from IDI’s broader private equity focus. While Argan benefits from sector-specific expertise, IDI’s diversified approach provides more flexibility in capital deployment across industries.
  • Ipsen (EPA:IPN): Ipsen is primarily a biopharmaceutical company, not a direct competitor. This entry seems misplaced; further verification is needed for accurate private equity competitors.
  • ALD SA (EPA:ALD): ALD SA is a fleet management and mobility solutions provider, unrelated to private equity. This suggests a data error; no direct competition exists with IDI.
  • Prudential plc (LON:PRU): Prudential plc is a multinational insurance and asset management firm, not a direct private equity competitor. Its scale and geographic reach exceed IDI’s, but its focus on insurance products and public markets creates minimal overlap.
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