| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 0.06 | -100 |
| Graham Formula | 1.64 | -98 |
Photo-Me International plc (LSE: PHTM) is a leading operator of instant-service equipment, specializing in photobooths and vending machines across the UK, Europe, Ireland, and Asia. Established in 1962 and headquartered in Bookham, UK, the company manages a vast network of 27,867 photobooths and 43,817 vending units, offering services ranging from identification photography to amusement and laundry solutions. Operating in the Business Equipment & Supplies sector under Industrials, Photo-Me leverages its extensive footprint to serve both commercial and consumer markets. The company’s diversified portfolio includes digital photo kiosks, business service equipment, and children’s rides, positioning it as a key player in automated self-service solutions. With a strong presence in high-traffic locations, Photo-Me benefits from recurring revenue streams and a resilient business model, making it a notable name in the vending and photobooth industry.
Photo-Me International presents a mixed investment case. On the positive side, the company operates a stable, asset-light business model with recurring revenue from its extensive network of photobooths and vending machines. Its diversified service offerings and strong cash position (GBp 99.4 million) provide resilience. However, the company faces risks from its high beta (1.28), indicating sensitivity to market volatility, and potential saturation in mature markets like the UK and Europe. The lack of debt is a positive, but growth may be constrained without strategic expansion into emerging markets or technological innovation. The dividend yield appears attractive, but investors should weigh this against limited top-line growth prospects and competitive pressures in the vending space.
Photo-Me International holds a competitive edge through its extensive installed base of photobooths and vending machines, which generate steady, high-margin revenue. Its dominance in identification photobooths, particularly in Europe, provides a defensive moat due to regulatory requirements for passport and ID photos. However, the company faces increasing competition from digital alternatives (e.g., smartphone photography and online ID services) that could erode demand for traditional photobooths. Its diversification into laundry machines and amusement equipment helps mitigate this risk but also exposes it to lower-margin segments. The company’s lack of debt and strong cash flow from operations (GBp 53.9 million) provide financial flexibility, but its growth strategy remains unclear compared to tech-driven competitors. Photo-Me’s competitive positioning is further challenged by its reliance on physical locations, making it vulnerable to shifts in foot traffic patterns post-pandemic.