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Stock Analysis & ValuationTouax SCA (TOUP.PA)

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5.48
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)207.833693
Intrinsic value (DCF)3.99-27
Graham-Dodd Method11.92117
Graham Formula5.37-2

Strategic Investment Analysis

Company Overview

Touax SCA is a France-based company specializing in the operational leasing, sale, and management of mobile standardized equipment globally. Operating across three key divisions—Freight Railcars, River Barges, and Shipping Containers—Touax provides a diversified portfolio of leasing solutions, including intermodal wagons, car-carrier railcars, and river barges. Founded in 1853 and headquartered in La Défense, France, the company owns and manages a substantial fleet of 393,064 twenty-foot equivalent unit (TEU) containers, 99 river barges, and approximately 12,110 freight railcars. Touax also manufactures modular constructions and prefabricated buildings, adding another revenue stream. Positioned in the Industrials sector under Rental & Leasing Services, Touax serves industries requiring flexible, cost-effective asset utilization. With a market cap of €30.3 million and a presence in Europe and beyond, Touax leverages its long-standing expertise to meet global logistics and transportation demands.

Investment Summary

Touax SCA presents a niche investment opportunity in the equipment leasing sector, with diversified exposure to rail, river, and container leasing. The company’s €198.5 million revenue and €3.9 million net income (FY 2021) reflect stable operations, though diluted EPS of €0.56 and negative operating cash flow (-€3.1 million) signal financial strain. A high beta (1.738) implies volatility, likely tied to cyclical demand in freight and shipping. The €365.9 million total debt raises leverage concerns, but €48.9 million in cash provides liquidity. A modest dividend (€0.12/share) may appeal to income-focused investors. Risks include exposure to economic downturns impacting freight volumes and competition from larger leasing firms. Investors should weigh Touax’s specialized asset base against its financial constraints.

Competitive Analysis

Touax SCA competes in a fragmented market dominated by global leasing giants and regional players. Its competitive edge lies in its diversified fleet (rail, barges, containers) and long-term industry relationships. However, its small scale (€30.3 million market cap) limits pricing power and fleet expansion compared to larger peers. The railcar leasing division faces competition from companies like GATX and VTG, while its barge business contends with inland waterway specialists. In containers, Touax’s fleet is dwarfed by industry leaders like Triton International. The company’s asset-light model (leasing vs. ownership) reduces capital intensity but exposes it to lease rate volatility. Strengths include geographic diversification (Europe-focused but with global container operations) and vertical integration (e.g., modular construction). Weaknesses include high debt (€365.9 million) and reliance on freight demand cyclicality. Touax’s niche focus on standardized equipment may insulate it from some competition, but scalability remains a challenge.

Major Competitors

  • GATX Corporation (GATX): GATX is a global leader in railcar leasing with a diversified fleet and strong balance sheet. Its scale (market cap ~$4.5 billion) and long-term customer contracts provide stability, but it lacks Touax’s exposure to barges and containers. GATX’s focus on North America and Europe overlaps with Touax’s markets.
  • Triton International Limited (TRTN): Triton dominates the shipping container leasing market with a fleet of over 7 million TEUs. Its size and global reach overshadow Touax’s container division, but Triton lacks rail or barge operations. Touax’s smaller scale may allow agility in niche markets.
  • VTG Aktiengesellschaft (VTG.DE): VTG is a European railcar leasing leader with a fleet of ~86,000 cars. Its focus on tank cars and chemical transport differentiates it from Touax’s intermodal emphasis. VTG’s stronger financials (higher revenue and profitability) pose a competitive threat in Europe.
  • CAI International, Inc. (CAI): CAI leases shipping containers and railcars, competing directly with Touax in two segments. Its larger container fleet (~1.3 million TEUs) and US focus contrast with Touax’s European base. CAI’s recent privatization (2021) removed it from public markets, reducing direct investor comparisons.
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