| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 307.26 | -25 |
| Intrinsic value (DCF) | 1719.64 | 319 |
| Graham-Dodd Method | 53.10 | -87 |
| Graham Formula | 220.91 | -46 |
ID Logistics Group SA (IDL.PA) is a leading global provider of contract logistics services, specializing in warehousing, transport optimization, and supply chain solutions. Headquartered in Orgon, France, the company operates approximately 350 sites across 17 countries, serving high-growth sectors such as e-commerce, FMCG, high-tech, cosmetics, fashion, and retail. ID Logistics offers a comprehensive suite of services, including stock management, order preparation, co-packing, and automated unit picking, along with freight forwarding and customs solutions. With a strong presence in Europe, Asia, and Latin America, the company leverages its expertise in turnkey project delivery and e-commerce logistics to meet the evolving demands of global supply chains. As part of the Industrials sector, ID Logistics plays a pivotal role in enabling efficient and scalable logistics operations for multinational clients, positioning itself as a key player in the competitive specialty business services industry.
ID Logistics presents a compelling investment case with its diversified geographic footprint and strong positioning in high-growth logistics segments, particularly e-commerce. The company's revenue of €3.27 billion (FY 2024) and operating cash flow of €452.2 million reflect robust operational efficiency. However, investors should note the high total debt of €1.45 billion, which could pose risks in a rising interest rate environment. The stock's beta of 0.74 suggests lower volatility compared to the broader market, making it a relatively stable pick within the Industrials sector. While the company does not pay dividends, its focus on reinvestment and expansion in emerging markets could drive long-term growth. Key risks include exposure to economic cycles and competitive pressures in the contract logistics space.
ID Logistics competes in the highly fragmented contract logistics market, where differentiation is driven by technological capabilities, geographic reach, and service specialization. The company's competitive advantage lies in its integrated logistics solutions, particularly in e-commerce and high-tech sectors, where demand for agile supply chains is growing. Its extensive network of 350 sites across 17 countries provides scalability, allowing it to serve multinational clients efficiently. However, ID Logistics faces stiff competition from larger global players with deeper financial resources and more advanced automation capabilities. The company's mid-market positioning allows it to offer personalized services, but it must continuously invest in technology (e.g., automated picking systems) to keep pace with industry leaders. Its stronghold in Europe, especially France and Spain, provides stability, while expansion in emerging markets like Brazil and Indonesia offers growth potential. The lack of significant capital expenditures (€0 in FY 2024) raises questions about its ability to sustain innovation against competitors investing heavily in automation and AI-driven logistics.