| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 9447.61 | 944 |
| Intrinsic value (DCF) | 305.03 | -66 |
| Graham-Dodd Method | 1004.32 | 11 |
| Graham Formula | 1574.03 | 74 |
Malteries Franco-Belges SA (MALT.PA) is a leading malt producer headquartered in Nogent-sur-Seine, France, specializing in supplying high-quality malt primarily to brewers across France and internationally. As a subsidiary of Malteries Soufflet SAS, the company benefits from strong industry expertise and a vertically integrated supply chain, including barley trading. Operating in the alcoholic beverages sector under the consumer defensive category, Malteries Franco-Belges plays a critical role in the brewing industry by providing essential ingredients for beer production. With a market capitalization of approximately €439 million, the company demonstrates stable financial performance, supported by consistent revenue streams and a solid balance sheet. Its operations cater to both domestic and international markets, positioning it as a key player in the European malt industry. Investors value its defensive business model, which is resilient to economic downturns due to steady demand for alcoholic beverages.
Malteries Franco-Belges SA presents an attractive investment opportunity due to its stable revenue base, low beta (0.542), and strong profitability metrics, including a net income of €44.6 million and diluted EPS of €89.96 for the fiscal year ending June 2024. The company’s low debt (€1.55 million) and healthy cash position (€69.68 million) provide financial flexibility, while its dividend yield (€3.9 per share) enhances shareholder returns. However, risks include exposure to fluctuating barley prices and dependence on the brewing industry’s cyclical demand. The company’s defensive sector positioning mitigates some economic risks, but investors should monitor raw material costs and competitive pressures in the malt production industry.
Malteries Franco-Belges SA holds a competitive advantage through its affiliation with Malteries Soufflet SAS, one of Europe’s largest malt producers, which provides economies of scale and supply chain efficiencies. The company’s focus on high-quality malt production for brewers ensures steady demand, particularly in France, where it has a strong market presence. Its vertically integrated operations, including barley trading, help control input costs and ensure supply stability. However, the malt industry is highly competitive, with large multinational players dominating global markets. Malteries Franco-Belges competes primarily on regional expertise and customer relationships rather than scale. Its niche positioning allows it to serve specialized brewers effectively, but it lacks the global reach of larger competitors. The company’s financial stability and low leverage provide resilience, but growth may be constrained by limited geographic diversification compared to industry leaders.