Stock Analysis & Valuation Peugeot Invest S.A. (PEUG.PA)

• Previous Close: €72.90
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	74.67	2
Intrinsic value (DCF)	56.66	-22
Graham-Dodd Method	163.33	124
Graham Formula	78.05	7

Strategic Investment Analysis

Company Overview

Peugeot Invest SA (PEUG.PA) is a prominent French investment company headquartered in Paris, specializing in private equity and real estate investments. Established in 1929, the firm has evolved into a key player in the financial services sector, focusing on governance, social responsibility, and environmental protection. With a diversified portfolio, Peugeot Invest leverages its long-standing expertise to generate sustainable returns for shareholders. The company operates in the competitive asset management industry, where it stands out due to its strategic investments and strong financial performance. Peugeot Invest's commitment to ESG (Environmental, Social, and Governance) principles enhances its appeal to socially conscious investors. Listed on Euronext Paris, the company continues to expand its influence in the European financial markets, backed by a solid market capitalization of over €1.8 billion.

Investment Summary

Peugeot Invest SA presents an attractive investment opportunity due to its robust financial health, evidenced by a net income of €146.3 million and a diluted EPS of €5.87 for the fiscal year ending 2024. The company's strong operating cash flow of €342.8 million and negligible total debt underscore its financial stability. Additionally, Peugeot Invest offers a generous dividend yield, with a dividend per share of €6.5, appealing to income-focused investors. However, the company's beta of 1.251 indicates higher volatility compared to the market, which may deter risk-averse investors. The firm's focus on ESG-compliant investments aligns with growing trends in sustainable finance, potentially driving long-term growth. Investors should weigh these strengths against the inherent risks of the private equity and real estate sectors, including market cyclicality and liquidity constraints.

Competitive Analysis

Peugeot Invest SA competes in the asset management industry, where its primary competitive advantage lies in its diversified investment portfolio and strong financial performance. The company's focus on private equity and real estate allows it to capitalize on high-growth opportunities while maintaining a balanced risk profile. Peugeot Invest's long-standing presence in the market and its affiliation with the Peugeot family provide it with a unique edge in terms of brand recognition and access to exclusive investment opportunities. The firm's commitment to ESG principles further differentiates it from competitors, appealing to a growing segment of socially responsible investors. However, the company faces stiff competition from larger asset managers with broader global reach and more extensive resources. Peugeot Invest's relatively smaller scale may limit its ability to compete on certain fronts, such as offering a wide range of investment products. Nonetheless, its niche focus and strong financials position it well within the competitive landscape.

Major Competitors

• Danone SA (BN.PA): Danone SA is a multinational food-products corporation, not directly comparable to Peugeot Invest but competes for investor attention in the French market. Danone's strengths include a strong global brand and diversified product portfolio, but it faces challenges in maintaining growth in competitive markets. Unlike Peugeot Invest, Danone operates in the consumer goods sector, which is less volatile but offers lower growth potential compared to private equity.
• Crédit Agricole SA (ACA.PA): Crédit Agricole SA is a leading French financial services company with a strong presence in asset management. Its strengths include a vast network and comprehensive financial products, but it lacks the niche focus on private equity and real estate that Peugeot Invest offers. Crédit Agricole's larger scale provides stability but may limit agility in pursuing high-growth opportunities.
• BNP Paribas SA (BNP.PA): BNP Paribas SA is a global banking and financial services giant, competing indirectly with Peugeot Invest in asset management. Its strengths include a strong international presence and diversified revenue streams, but its focus on traditional banking services differs from Peugeot Invest's specialized investment approach. BNP Paribas' size offers stability but may dilute returns in high-growth sectors.