The average target price of MLLCB.PA is 4.6 and suggests 35% 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 35% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 4.6. This suggests 35% 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 23mn in the last 12 months, up 57% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 23% from FY23 to EUR 0.32. Market expects EPS to reach EUR 0.30 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 12ppts and its growth decelerated by 7ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 10.4% in the last 12 months, up from 10.2% in FY23. 

Historically, MLLCB.PA has reported average net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 3.8%, down from 3.8% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 6.5%, above the peers. 

Les Constructeurs du Bois S.A. reported a return on equity (RoE) of 21.6% in the last 12 months, down from 34.2% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 4.6% in the last 12 months, a decrease from 7.3% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.4 in the past several years. This ratio implies a strong 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 as volatile as an index. In other words, the stock will move with 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 limited. 

In normal market circumstances, MLLCB.PA is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to notable. 

Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on EV/EBITD. 

Les Constructeurs du Bois S.A.

€ 3.34

4

Les Constructeurs du Bois S.A.

€ 3.34

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 3.34

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