The average target price of MLLCB.PA is 4.6 and suggests 38% 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 4.6. This translates into 38% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 4.6. This suggests 38% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Les Constructeurs du Bois S.A. designs and constructs office, industrial, and residential buildings in France. The company develops timber real estate projects in the Grand Est. The company designs and manages wood buildings. Les Constructeurs du Bois S.A. was founded in 2010 and is based in Epinal, France.

France

Les Constructeurs du Bois S.A.

Real Estate

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

MLLCB.PA reported revenue of EUR 16mn in the last 12 months, up 8% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 38% from FY23 to EUR 0.36.

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). The stock has outperformed this peer group by 4ppts over past six months and grown 6ppts 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 average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 13.8% in the last 12 months, a decline from 29.9% in FY22. 

Historically, MLLCB.PA has reported good net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 6.3%, down from 16.6% in FY22. 

In the last 12 months, the return on capital employed (RoCE) declined to 11.8%, above the peers. 

Les Constructeurs du Bois S.A. reported a return on equity (RoE) of 29.6% in the last 12 months, down from 43.2% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to 6.4% in the last 12 months, a decrease from 10.1% in FY22. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 3.1 in the past several years. This ratio implies a excellent 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.

MLLCB.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 may be unstable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. 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 tiny 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, poor working capital management, poor cash flow generation, and an unfavourable capital structure. We note resilient historical revenue growth and solid return on capital, among the positive credit factors. 

In highly turbulent market conditions, MLLCB.PA is moderately volatile. In other words, the stock will fall 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 moderate. 

In normal market circumstances, MLLCB.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. 

Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on EV/EBITD. 

Les Constructeurs du Bois S.A.

€ 3.36

3

Les Constructeurs du Bois S.A.

€ 3.36

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 3.36

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