| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 19.82 | 546 |
| Intrinsic value (DCF) | 0.29 | -91 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Teract S.A. is a leading European specialty retail company headquartered in Paris, France, operating in the consumer cyclical sector. The company focuses on garden centers and pet care shops under well-known brands such as Jardiland, Gamm vert, Delbard, and Jardinerie du Terroir. Additionally, Teract has a strong presence in the fresh, local, and organic produce market through its Frais d'Ici and Bio&Co brands, catering to the growing demand for sustainable and healthy food options. With 1,597 stores across Europe, Teract serves a broad customer base, combining retail expertise with a commitment to quality and sustainability. The company's diversified retail portfolio positions it as a key player in both the garden center and organic food retail segments, making it a relevant choice for investors interested in the European specialty retail market.
Teract S.A. presents a mixed investment profile. On the positive side, the company operates in niche retail segments (garden centers and organic food) that benefit from stable consumer demand and growing interest in sustainability. However, the company reported a net loss of €68.9 million in the latest fiscal year, with negative diluted EPS of €-0.94, indicating financial challenges. The operating cash flow of €10.8 million is overshadowed by high total debt of €525.3 million, raising concerns about leverage. The lack of dividends may deter income-focused investors. While the company's beta of 0.491 suggests lower volatility compared to the broader market, its financial performance and high debt levels pose significant risks. Investors should closely monitor Teract's ability to improve profitability and manage its debt burden.
Teract S.A. competes in the European specialty retail market, primarily in garden centers and organic food retail. Its competitive advantage lies in its strong brand portfolio, including Jardiland and Gamm vert, which have established customer loyalty. The company's extensive store network (1,597 locations) provides a broad market reach, though this also comes with high operational costs. Teract's focus on fresh, local, and organic produce aligns with consumer trends toward sustainability, giving it an edge in a growing niche. However, the company faces intense competition from larger retail chains and e-commerce players that offer convenience and competitive pricing. Teract's financial struggles, including negative net income and high debt, weaken its competitive positioning compared to more financially stable rivals. To strengthen its market position, Teract needs to streamline operations, reduce debt, and possibly explore digital transformation to compete with online retailers. Its current strategy of combining garden centers with organic food retail is unique but may require further differentiation to stand out in a crowded market.