The average target price of GUI.PA is 6.1 and suggests 27% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 6.1. This translates into 28% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 5.8. This suggests 22% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Guillemot Corporation S.A. designs, manufactures, and sells interactive entertainment hardware and accessories in France, Germany, the United Kingdom, Spain, the United States, Canada, Italy, China, Belgium, and Romania. It offers digital hardware and peripherals under the Hercules brand name; PC and console gaming accessories under the Thrustmaster brand name; and DJ solutions for various connected devices under the DJUCED brand name. Guillemot Corporation S.A. was founded in 1984 and is based in Chantepie, France.

France

Guillemot Corporation S.A.

Technology

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 barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

GUI.PA reported revenue of EUR 125mn in the last 12 months, up 5% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 67% from FY23 to EUR 0.10. Market expects EPS to reach EUR 0.48 in FY25.

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 21ppts over six months and grown 8ppts 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 modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 9.9% in the last 12 months, a decline from 11.4% in FY23. 

Historically, GUI.PA has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 0.9%, a growth from 0.8% in FY22. 

Guillemot Corporation S.A. reported a return on equity (RoE) of 1.2% in the last 12 months, up from 1.1% in FY23. The market consensus projects an RoE of 5.4% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to 0.7% in the last 12 months, an increase from 0.7% in FY23. The market analysts predict that RoA will be 3.4% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 1.1%, below the peers. The consensus estimate for FY24 for RoCE is 24.9%, however, this time ahead of the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.4 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.

GUI.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. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, and negligible return on capital.

In highly turbulent market conditions, GUI.PA is volatile. In other words, the stock will fall much more 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 large. 

In normal market circumstances, GUI.PA is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from large to notable. 

From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. In particular, the stock is overpriced on P/E, 'cheap' on EV/EBITDA, undervalued on P/FCF. 

Guillemot Corporation S.A.

€ 4.77

3

Guillemot Corporation S.A.

€ 4.77

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 4.77

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