Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Headquartered in Paris, France, We.Connect S.A. specializes in the complete lifecycle of computing, peripheral, and electronic equipment, encompassing design, manufacturing, assembly, and distribution throughout the French market. Their extensive product catalog features personal computers, monitors, and a variety of multimedia devices. For data storage, they provide a full suite of options, including internal and external hard drives, solid-state drives (SSDs), multimedia hard drives, and wireless storage solutions. The company also offers a broad selection of accessories for various devices: PC peripherals like mice, keyboards, carrying cases, gaming gear, and protective items; tablet accessories such as cases, connectors, power banks, chargers, and stands; smartphone accessories including protective cases, screen guards, connectivity cables, portable power, charging solutions, and armbands; and general telephony accessories like shells, armbands, and headphone kits. Furthermore, they supply sport-specific accessories such as earphones, armbands, belts, and outdoor equipment, alongside automotive accessories. Beyond hardware and peripherals, We.Connect's portfolio extends to audio equipment, including Bluetooth speakers and radios, as well as toys, specialized gaming products, lighting and sound systems, urban mobility solutions, diverse connectivity and charging devices, and internet-connected objects. All these products are marketed under their proprietary "WE" brand. Additionally, the company engages in the wholesale distribution of IT and perinformatics products and offers bespoke PC design and assembly services, complemented by comprehensive warranty services.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT