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Stock Analysis & ValuationMicropole S.A. (MUN.PA)

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1.22
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method0.13-90
Graham Formula0.08-94

Strategic Investment Analysis

Company Overview

Micropole S.A. (MUN.PA) is a France-based consulting, engineering, and training company specializing in digital transformation, data governance, and decision-support solutions. Founded in 1987 and headquartered in Levallois-Perret, the company operates across France and internationally, offering expertise in business intelligence (BI), data analytics, digital marketing, customer relationship management (CRM), and cloud security. Micropole serves diverse industries with solutions in operational and financial management, GDPR compliance, and enterprise architecture. The company rebranded from Micropole-Univers to Micropole S.A. in 2010, reflecting its evolution into a modern IT services provider. With a focus on data-driven decision-making and digital innovation, Micropole plays a key role in helping businesses optimize performance through advanced analytics and cloud-based platforms. Despite its modest market capitalization, the company maintains a niche presence in the competitive European IT consulting sector.

Investment Summary

Micropole S.A. presents a mixed investment profile. The company operates in the growing IT consulting and digital transformation space, benefiting from increasing demand for data analytics and cloud solutions. However, its financials reveal modest profitability (net income of €168K in FY 2023) and thin margins, with diluted EPS of just €0.0058. Revenue of €141.9M suggests a small-scale operation in a highly competitive market. The company maintains a stable operating cash flow (€13.1M) and holds €16.2M in cash, but carries €30.8M in total debt. With no dividend payout and a beta of 0.94, Micropole may appeal to investors seeking a conservative, non-cyclical tech play, but its limited scale and profitability pose risks compared to larger IT service providers.

Competitive Analysis

Micropole S.A. competes in the fragmented IT consulting and digital transformation sector, where differentiation is critical. The company’s niche focus on data governance, BI, and GDPR compliance provides a competitive edge in regulated industries, particularly in France. However, its relatively small size (€141.9M revenue) limits its ability to compete with global IT service giants on scale and resources. Micropole’s strength lies in its specialized expertise in data analytics and cloud integration, which allows it to serve mid-market clients effectively. Its hybrid consulting-and-engineering model differentiates it from pure-play consultants, but it faces stiff competition from larger firms with broader geographic reach and deeper R&D budgets. The company’s low profitability (0.1% net margin in FY 2023) suggests pricing pressure from rivals. To sustain growth, Micropole must leverage its regional presence in France while expanding high-margin services like cloud security and AI-driven analytics.

Major Competitors

  • Capgemini SE (CAP.PA): Capgemini is a global leader in IT services and consulting, with €22.5B in revenue (2023), dwarfing Micropole’s scale. Its strengths include a vast international footprint, strong cloud and AI capabilities, and partnerships with major tech firms. However, its size may limit agility in niche data governance projects where Micropole competes.
  • Atos SE (ATO.PA): Atos provides IT infrastructure, cybersecurity, and digital transformation services, with €10.7B revenue (2022). While financially strained recently, its hybrid cloud and supercomputing expertise overlap with Micropole’s offerings. Atos’ larger R&D budget is a threat, but Micropole’s focus on BI and data governance may appeal to cost-conscious clients.
  • Dassault Systèmes SE (DSY.PA): Dassault specializes in 3D design and product lifecycle management (PLM) software, with €5.6B revenue (2023). Its strengths lie in industrial and healthcare analytics, but it competes indirectly with Micropole in data governance. Micropole’s consulting-centric model offers more customization for mid-market clients.
  • Sopra Steria Group (SOP.PA): Sopra Steria (€5.1B revenue in 2023) combines IT services with software development, competing in digital transformation and cloud. Its public-sector focus in Europe contrasts with Micropole’s BI specialization. Sopra’s scale is an advantage, but Micropole may be nimbler in data analytics implementations.
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