Stock Analysis & Valuation CMG Cleantech S.A. (MLCMG.PA)

• Previous Close: €0.26
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

CMG Cleantech S.A. (MLCMG.PA) is a Paris-based mining company specializing in granite extraction in Uruguay. The company supplies gray granite for diverse applications, including tombstones, paving, facades, furniture, and public roads, as well as violet blue granite. Formerly known as Compagnie Mercosur Grecemar S.A., CMG Cleantech operates in the Renewable Utilities sector, focusing on sustainable resource extraction. Despite its small market capitalization (€27.6M), the company aims to carve a niche in the granite supply chain, particularly in Europe and South America. However, its financial performance has been weak, with no reported revenue and negative net income in FY 2023. Investors should note its high debt-to-equity ratio and limited liquidity, which pose significant risks.

Investment Summary

CMG Cleantech presents a high-risk investment opportunity due to its lack of revenue, negative earnings, and substantial debt burden (€895K). The company’s focus on granite extraction in Uruguay offers exposure to the construction and infrastructure sectors, but its financial instability and small-scale operations limit its attractiveness. With no dividends and weak cash reserves (€5.7K), the stock is speculative and suited only for investors with a high-risk tolerance. The low beta (0.66) suggests limited correlation with broader market movements, but this does not mitigate fundamental concerns about solvency and growth prospects.

Competitive Analysis

CMG Cleantech operates in a niche segment of the granite mining industry, competing with larger global players in construction materials. Its competitive advantage lies in its access to Uruguayan granite deposits, which may offer cost or quality differentiation. However, the company’s small scale and lack of revenue make it vulnerable to pricing pressures and operational inefficiencies. Unlike diversified mining giants, CMG lacks vertical integration or downstream processing capabilities, limiting its ability to capture value beyond raw material extraction. The absence of reported revenue suggests it has yet to establish a stable customer base or long-term contracts, further undermining its market positioning. Competitors with stronger balance sheets and broader geographic reach dominate the industry, leaving CMG as a marginal player.

Major Competitors

• Vulcan Materials Company (VMC): Vulcan Materials is a leading US-based producer of construction aggregates, including granite, with a strong market presence and vertically integrated operations. Its scale and financial stability dwarf CMG Cleantech’s, but it focuses primarily on North America, reducing direct overlap. Weaknesses include exposure to cyclical construction demand.
• CRH plc (CRH): CRH is a global leader in building materials, with diversified operations including aggregates. Its vast resources and international footprint make it a far stronger competitor than CMG Cleantech. However, its broad focus may dilute attention to niche granite markets where CMG could theoretically compete.
• Sibanye-Stillwater (SIB.ST): Primarily a precious metals miner, Sibanye-Stillwater also produces granite and other industrial minerals. Its diversified portfolio and mining expertise give it an edge over CMG, though its focus on metals reduces direct competition. Its South African base offers cost advantages but comes with geopolitical risks.