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Wednesday, June 12, 2024

Samse Group (ISIN FR0000060071) – A Hidden French Compounder that’s as thrilling as watching Paint dry ?


Disclaimer: This isn’t funding recommendation. PLEASE DO YOUR OWN RESEARCH !!!

As previously, because of the unhealthy WordPress editor, I’ll publish a abstract right here and fasten the total write-up as PDF.

After teasing a brand new place within the Nabaltec “Publish Mortem”, I proudly current the subsequent (hopefully) tremendous boring firm for my boring portfolio.

SAMSE SA is a French firm that distributes constructing supplies to “skilled” clients like contractors, craftsmen and many others. It additionally has a smaller “Direct to shopper” DYI retailer section, which represents round 20% of gross sales. Samse is energetic solely in France and No. 2 after Saint Gobain, which, nonetheless is far greater even solely on this particular sector (2000 retailers vs. 350).

Right here is an summary of related “KPIs” at a share value of 190 EUR (time of writing):

PDF file with detailed write-up:

Professional’s and Con’s

What do I like:

  • Household owned/managed
  • Exceptionally excessive worker possession
  • Conservative monetary profile and enterprise mannequin
  • Countercyclical M&A
  • Decentralized group
  • Superb firm tradition
  • enterprise that I sort of perceive (distribution)
  • not engaging at first sight
  • potential “comfortable catalyst” by way of acquisition in robust occasions
  • affordable valuation 

Dangers

  • Nonetheless Leverage on Holdco degree
  • perhaps over incomes in 2021 and 2022
  • Cycle in constructing supplies would possibly nonetheless worsen
  • low free float
  • provides to my sector publicity (Thermador, Sto, Photo voltaic)
  • For some cause, they’ve discontinued English reviews from 2018 onwards

Abstract:

SAMSE appears to be a kind of top quality “hidden Champion” corporations that I’m all the time in search of. The enterprise is extraordinarily boring and topic to financial cycles. However, the corporate appears to be very nicely managed and so they appear to have the ability to use the cycles to get out stronger from the lows than they entered.

I made a decision to allocate a 3% place into SAMSE at a mean value of 190 EUR per share, funded primarily by the sale of the Nabaltec place. The three% displays my present publicity to the sector.

Truthfully, I don’t count on an ideal and fast run up of the share value. I truly hope that the share value does little or no and that I can add if fundamentals slowly get higher over time like within the Schaffner and Meier Tobler case.

Sources:

A giant thanks particularly to Jeremy from “French Hidden Champions” and Philippe Luchesi. Each guys are value following if you’re fascinated with high quality French shares. 

Philippe on SAMSE:

Jeremy on SAMSE:

https://frenchhiddenchampions.substack.com/p/sfaf-analyst-meeting-report-samse?s=w

A latest interview with the CEO:

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