Societe Centrale des Bois et Scieries de la Manche engages in the ownership, management, and lease of real estate properties in France. It leases offices, business properties, mixed activity locations, and residences. The company is based in Paris, France.

France

Société Centrale des Bois et des Scieries de la Manche S.A.

Real Estate

The company pays dividends from time to time. It has paid dividends in less than half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been moderate and on par with its peers. 

CBSM.PA reported revenue of EUR 23mn in the last 12 months, up 10% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. 

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 7ppts over six months and grown 3ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported very strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 77.1% in the last 12 months, up from 41.3% in FY24. 

Historically, CBSM.PA has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 64.2%, a growth from 1.5% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to 3.1% in the last 12 months, an increase from 0.1% in FY24. 

Société Centrale des Bois et des Scieries de la Manche S.A. reported a return on equity (RoE) of 5.7% in the last 12 months, up from 0.1% in FY24. 

In the last 12 months, the return on capital employed (RoCE) grew to 3.1%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.5 in the past several years. This ratio implies a weak shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

CBSM.PA has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, negligible return on capital, excessive margin volatility, weak debt servicing capacity, and inadequate interest coverage. We note robust profitability, among the positive credit factors. 

In highly turbulent market conditions, CBSM.PA is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, CBSM.PA is not overly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will remain relatively stable. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

From both historical and forecast perspectives, the stock is underpriced compared to similar stocks. In particular, the stock is underpriced on P/E, of fair value on EV/EBITDA, undervalued on P/FCF. 

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Société Centrale des Bois et des Scieries de la Manche S.A.

€ 8.7

4

Société Centrale des Bois et des Scieries de la Manche S.A.

€ 8.7

4

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€ 8.7

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