| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 43.38 | -1 |
| Intrinsic value (DCF) | 24.34 | -44 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 10.98 | -75 |
Infotel SA is a leading French IT services and software solutions provider specializing in security, performance, and data management. Founded in 1979 and headquartered in Paris, the company offers a suite of proprietary software, including Arcsys for electronic data archiving, iDBA-Online for DB2 database management, and Infoscope for application testing. Infotel serves key industries such as banking, finance, insurance, and telecommunications, delivering consultancy, system audits, and third-party application maintenance. With a strong focus on innovation and efficiency, Infotel has established itself as a trusted partner for enterprises requiring high-performance IT solutions. The company’s expertise in database optimization and secure data management positions it well in the growing global IT services market, particularly in Europe. Infotel’s commitment to R&D and customer-centric solutions underscores its relevance in the competitive technology sector.
Infotel SA presents a stable investment opportunity with a niche focus on database management and IT security solutions. The company’s solid financials, including €294.8M in revenue and €18.5M net income (FY 2024), reflect consistent profitability. With a strong cash position (€109.9M) and manageable debt (€31.1M), Infotel maintains financial flexibility. Its low beta (0.584) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, growth may be constrained by its regional focus (primarily France) and competition from larger global IT service providers. The dividend yield (~3.4% based on a €2/share payout) adds income appeal. Investors should monitor the company’s ability to expand internationally and innovate in cloud and AI-driven solutions to sustain competitiveness.
Infotel SA competes in the IT services and software market with a differentiated focus on database performance and security solutions. Its proprietary tools like Arcsys and iDBA-Online cater to specific enterprise pain points, creating stickiness with clients in regulated sectors like banking. The company’s deep expertise in DB2 database management gives it an edge in legacy system optimization, a niche underserved by larger competitors. However, Infotel’s regional concentration in France limits its scale compared to global players. Its competitive advantage lies in high-touch consultancy and tailored software, but it faces pressure from cloud-native alternatives and automation trends. The lack of significant capex (€0 in FY 2024) raises questions about its ability to pivot toward cloud-based offerings. Infotel’s partnerships with IBM (for DB2) provide credibility but also create dependency risks. To maintain positioning, the company must balance its legacy strengths with investments in emerging technologies like AI-driven data analytics.