| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 11.31 | -79 |
| Graham Formula | 10.69 | -80 |
SQLI SA is a France-based digital transformation leader specializing in digital experience and unified commerce solutions. Operating primarily in Europe, SQLI provides comprehensive IT consulting, implementation, and maintenance services tailored for large enterprises and public sector clients. The company's expertise spans digital experience platforms, big data analytics, mobile solutions, UX design, and marketing performance optimization. Founded in 1990 and headquartered in Levallois-Perret, SQLI was taken private in February 2022, reflecting its strategic focus on long-term digital transformation projects. With a market capitalization of approximately €252 million, SQLI competes in the €500+ billion global IT services market, differentiating itself through deep sector expertise and integrated digital commerce solutions. The company's service portfolio addresses critical enterprise needs in omnichannel commerce, workplace digitization, and data-driven marketing, positioning it as a key partner for organizations undergoing digital modernization.
SQLI presents a specialized play in the European digital transformation market with moderate financial performance. The company's €251 million revenue and €4.8 million net income for FY2023 reflect steady operations in a competitive IT services sector. While its 0.633 beta indicates lower volatility than the broader market, investors should note the company's private status since 2022 limits public market opportunities. SQLI maintains reasonable financial health with €16 million cash reserves against €54 million debt, and its €0.64 dividend demonstrates commitment to shareholder returns. The primary investment considerations are SQLI's niche expertise in unified commerce solutions versus larger competitors' scale advantages, and the potential constraints of its private ownership structure on growth capital access.
SQLI occupies a middle-tier position in the European digital services landscape, competing against both global IT consultancies and regional specialists. The company's primary competitive advantage lies in its integrated approach combining digital experience design with commerce technology implementation - a valuable proposition for retailers and financial services clients. However, SQLI faces significant scale disadvantages compared to multinational players like Capgemini in terms of global delivery networks and R&D budgets. Its 2,500+ employee base limits ability to pursue large-scale transformation projects independently. The company differentiates through deep vertical expertise in retail and public sector, with proprietary methodologies for commerce platform integration. SQLI's post-privatization structure may enhance operational flexibility but could restrict access to growth capital compared to publicly-traded peers. The competitive landscape is intensifying as cloud platform providers expand their consulting arms, though SQLI maintains relevance through vendor-agnostic implementation capabilities. Financial metrics suggest efficient operations (4.8% net margin) but lag behind top-quartile IT services firms achieving 10%+ margins through offshore leverage.