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Stock Analysis & ValuationGet Groupe SFPI S.A. (SFPI.PA)

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1.70
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)27.051491
Intrinsic value (DCF)0.89-48
Graham-Dodd Method2.6958
Graham Formula0.78-54

Strategic Investment Analysis

Company Overview

GROUPE SFPI SA is a leading French industrial group specializing in safety equipment and industrial solutions. Operating through four key divisions—DOM Security, MAC, MMD, and NEU-JKF—the company provides a diverse range of products, including opening and closure systems for residential and industrial buildings, mechanical and digital locking solutions, and advanced air treatment systems. With well-known brands like France Fermetures, Franciaflex, and Faber, SFPI serves multiple industries, including food processing, automotive, aerospace, and construction. Headquartered in Paris and founded in 1985, the company has established a strong presence in Europe and internationally. Its expertise in thermal processing, sterilization, and industrial ventilation positions it as a critical player in industrial safety and efficiency. SFPI’s diversified portfolio and commitment to innovation make it a resilient player in the industrial machinery sector.

Investment Summary

GROUPE SFPI presents a mixed investment case. With a market cap of €202 million and revenue of €665.8 million, the company operates in niche industrial segments with steady demand. However, its net income of €14.5 million and diluted EPS of €0.16 indicate modest profitability. The company maintains a solid cash position (€145.9 million) but carries €88.3 million in debt. Its beta of 1.273 suggests higher volatility compared to the broader market. The dividend yield is minimal (€0.03 per share), which may not appeal to income-focused investors. While SFPI benefits from diversified industrial exposure, investors should weigh its moderate growth prospects against sector competition and macroeconomic risks in European industrial markets.

Competitive Analysis

GROUPE SFPI competes in specialized industrial segments, leveraging its diversified product portfolio and strong brand recognition in Europe. Its DOM Security division holds a competitive edge in high-security locking systems, while its air treatment solutions (under NEU-JKF) cater to heavy industries with stringent environmental standards. However, the company faces stiff competition from larger industrial conglomerates with broader R&D budgets and global distribution networks. SFPI’s regional focus (primarily Europe) limits its growth potential compared to multinational peers. Its competitive advantage lies in niche applications—such as nuclear and aerospace safety systems—where customization and regulatory compliance are critical. Yet, pricing pressure from low-cost manufacturers and dependence on industrial capex cycles pose risks. The company’s ability to innovate in energy-efficient and smart locking solutions could strengthen its positioning, but scalability remains a challenge.

Major Competitors

  • Assa Abloy AB (ALSO.SW): Assa Abloy is the global leader in door opening solutions, with a vast portfolio of security and locking systems. Its scale and technological innovation (e.g., smart locks) give it an advantage over SFPI in global markets. However, SFPI’s specialization in high-security industrial applications provides a niche counterbalance.
  • Groupe Gorgé (ALGIR.PA): Gorgé operates in industrial protection and safety, overlapping with SFPI’s segments. Its focus on robotics and nuclear safety gives it an edge in high-tech solutions, but SFPI’s broader residential and commercial security offerings provide diversification.
  • Kone Oyj (KNEBV.HE): Kone specializes in elevators and building access solutions, competing indirectly with SFPI’s closure systems. Its strong brand and global footprint overshadow SFPI, though SFPI’s cost-effective solutions remain competitive in mid-market European projects.
  • SES-imagotag (SESG.PA): SES-imagotag focuses on digital retail solutions, but its electronic security systems compete with SFPI’s digital locks. While SES leads in retail tech, SFPI’s industrial and residential security expertise differentiates it.
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