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Stock Analysis & ValuationLACROIX Group S.A. (LACR.PA)

Professional Stock Screener
Previous Close
12.20
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)197.881522
Intrinsic value (DCF)3.99-67
Graham-Dodd Methodn/a
Graham Formula55.87358

Strategic Investment Analysis

Company Overview

LACROIX Group SA is a France-based technology company specializing in the development, industrialization, and production of electronic assemblies and subassemblies for diverse industries, including automotive, aeronautics, home automation, industrial, and healthcare. Founded in 1936 and headquartered in Saint-Herblain, the company operates across France, Germany, Poland, Italy, Spain, and Tunisia. LACROIX Group provides smart infrastructure solutions, such as street lighting, traffic management, and V2X (vehicle-to-everything) technologies, as well as remote control and automation systems for water and energy infrastructure. As a subsidiary of Vinila Investissements, LACROIX Group leverages its expertise in electronics and IoT (Internet of Things) to enhance efficiency and connectivity in urban and industrial environments. With a strong presence in Europe, the company plays a pivotal role in advancing smart city and industrial automation solutions, positioning itself as a key player in the technology-driven hardware and equipment sector.

Investment Summary

LACROIX Group SA presents a mixed investment profile. On the positive side, the company operates in high-growth segments such as smart infrastructure and industrial automation, supported by increasing demand for IoT and connectivity solutions. Its diversified client base across multiple industries mitigates sector-specific risks. However, the company's modest market cap (~€33.8M) and diluted EPS of €0.91 indicate limited scale compared to larger peers. While it generated €76.1M in revenue and €4.3M in net income for FY 2023, its total debt of €172.3M raises concerns about leverage, despite a healthy operating cash flow of €36.3M. The dividend yield (€0.7 per share) may appeal to income-focused investors, but the beta of 1.135 suggests higher volatility than the broader market. Investors should weigh LACROIX's niche positioning in smart infrastructure against its financial constraints and competitive pressures.

Competitive Analysis

LACROIX Group SA competes in the electronic assemblies and smart infrastructure market, where its key strengths lie in its specialized expertise in industrial and urban IoT applications. The company's focus on smart road and energy infrastructure differentiates it from generic electronics manufacturers. Its vertically integrated model—spanning development, production, and integration—allows for cost control and customization, which is critical in serving regulated industries like traffic management and utilities. However, LACROIX faces intense competition from larger multinational players with greater R&D budgets and global supply chains. Its regional concentration in Europe limits exposure to faster-growing markets in Asia and North America. The company's competitive advantage stems from its long-standing relationships with European municipalities and industrial clients, but it must continuously innovate to fend off rivals offering cheaper, standardized solutions. Additionally, its reliance on the automotive and industrial sectors exposes it to cyclical demand fluctuations. To maintain its edge, LACROIX must invest in next-gen technologies like AI-driven infrastructure management while improving operational efficiency to offset pricing pressures.

Major Competitors

  • TT Electronics plc (TTEF.PA): TT Electronics is a global provider of engineered electronics, competing with LACROIX in industrial and automotive segments. Its strengths include a broader geographic footprint and stronger R&D capabilities, but it lacks LACROIX's focus on smart city infrastructure. TT's larger scale allows for cost advantages, but its product portfolio is less specialized in IoT applications.
  • ALTEN SA (ALTEN.PA): ALTEN is a French engineering and technology consulting firm with overlapping interests in automotive and industrial electronics. Unlike LACROIX, it emphasizes services over hardware production, giving it flexibility but less control over manufacturing margins. ALTEN's stronger presence in aerospace and defense is a competitive threat to LACROIX's aeronautics segment.
  • Schneider Electric SE (SCHN.PA): Schneider Electric is a dominant player in energy management and automation, competing indirectly with LACROIX in smart infrastructure. Its vast resources and global brand overshadow LACROIX's niche offerings, though LACROIX's agility and customization capabilities provide an edge in specialized municipal projects. Schneider's integrated solutions pose a long-term threat to LACROIX's market share.
  • Balta Group NV (BALTA.BR): Balta Group focuses on flooring solutions but competes indirectly in smart building technologies. While not a direct competitor, its investments in home automation overlap with LACROIX's residential IoT segment. Balta's weaker electronics expertise is offset by stronger distribution channels in the European construction market.
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