| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 22.90 | -67 |
| Graham Formula | 127.32 | 82 |
SII S.A. is a leading French technology consulting and system integration firm, specializing in high-value IT solutions across multiple industries. Founded in 1979 and headquartered in Paris, the company offers a comprehensive suite of services, including research and consulting, system integration, embedded IT solutions, and infrastructure services. SII serves key sectors such as aerospace, defense, telecommunications, banking, automotive, and healthcare, positioning itself as a critical enabler of digital transformation. With a strong presence in France and international markets, the company leverages deep technical expertise to deliver customized solutions, from real-time embedded software to cybersecurity and cloud infrastructure. SII’s diversified client base and focus on innovation make it a resilient player in the competitive IT services landscape. The company’s €1.02 billion revenue in FY 2023 underscores its scale and relevance in Europe’s tech ecosystem.
SII S.A. presents a mixed investment profile. On the positive side, the company operates in the growing IT services sector, benefiting from digital transformation trends across industries. Its diversified client base and strong positioning in aerospace and defense provide stability. However, the company’s beta of 1.338 indicates higher volatility compared to the market, and its net margin of ~7.9% (€80.5M net income on €1.02B revenue) is modest for the sector. The dividend yield is low (~0.5% based on current market cap), suggesting limited income appeal. While SII’s €196.5M cash reserve and manageable debt (€90M) provide financial flexibility, investors should weigh its exposure to cyclical industries like automotive and telecom against its growth potential in high-tech and defense.
SII S.A. competes in the fragmented IT consulting and system integration market, differentiating itself through deep sectoral expertise in aerospace, defense, and embedded systems. Its competitive advantage lies in its hybrid model combining consulting, engineering, and infrastructure services—allowing it to capture end-to-end client needs. However, it faces pressure from larger global players (e.g., Capgemini, Atos) with broader scale and from niche specialists in areas like cybersecurity. SII’s focus on the French market (~70% of revenue) is both a strength (local client relationships) and a weakness (limited global diversification). The company’s ability to cross-sell services (e.g., integrating embedded systems with cloud infrastructure) adds value, but its reliance on project-based revenue may limit scalability compared to SaaS-centric competitors. Its €135M R&D spend (implied from services) is competitive but trails U.S. giants like Accenture in AI/cloud innovation.