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MERSEN

Analysis before buying or selling Mersen shares

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It is now possible to speculate on the Mersen share price directly online through your bank or trading platforms. But before embarking on such a strategy, we recommend that you deepen your knowledge of this stock. In this article, we will help you to make a good analysis of this stock by taking note of all the useful data about it, such as a complete presentation of this group's activities, a presentation of its main current competitors and a reminder of its recent partnerships. We will end our article by giving you some practical advice for the implementation of your fundamental analysis with the elements that you must analyze in priority in the publications and news to come.

Elements to consider before selling or buying Mersen shares

Analysis N°1

Mersen's supply of raw materials and the market for raw materials, which can have a direct influence on its productivity and therefore on its profitability, will of course be monitored.

Analysis N°2

The signing of major contracts by the group, particularly medium- and long-term supply contracts, will also be an interesting upward indicator for this stock.

Analysis N°3

We will also keep an eye on the development of the Mersen Group's activities around the world, particularly in emerging markets, with the setting up of new production sites or the creation of joint ventures or strategic partnerships.

Analysis N°4

Of course, Mersen's quarterly or annual earnings releases will also be important and you should keep a close eye on these results and the strategic goals and plans that Mersen communicates.

Analysis N°5

Finally, although Mersen is a leader in its sector of activity, a serious study of the competition is essential to any fundamental analysis of this stock, including the monitoring of important news in this sector.

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General presentation of Mersen

First of all, we propose to discover in more detail what are the activities of the company Mersen and thus what are the segments on which it is present on the market. You will then have a better visibility on its current and future challenges and be able to better anticipate its future trends.

The Mersen Group is a French company operating in the electrical specialties and graphite materials sector. It is one of the world's leading specialists in this sector. More precisely, Mersen is in charge of designing innovative solutions adapted to the needs of its customers in order to optimize their industrial performance in specific and particularly buoyant sectors such as the energy, transport, electronics, chemical/pharmaceutical and process industries.

To better understand the Mersen Group's activities, it is possible to divide them into different categories according to the share of revenue they generate and in this way:

Firstly, the activities of the advances materials segment generate the largest share of the Group's sales with 55.4% of total sales. These include graphite anticorrosion equipment, in which the group is currently the world leader, brushes and brushholders for industrial electric motors, in which it is also the leader, and high-temperature applications of isostatic graphite, in which the group is the world's number two.

The group's electrical power segment generates the remaining 44.6% of sales. It concerns in particular energy management solutions, mainly in power electronics, where the group is again the world leader, and electrical protection and control, where it is number two in the world, particularly for industrial fuses.

The geographical distribution of the group's activities is also interesting to study since Mersen generates 33.8% of its sales in Europe. The rest comes from North America (33.4%), Asia (28.5%) and the rest of the world (4.3%).

Analysis before buying or selling Mersen shares
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The major competitors of Mersen

Let's now take a few moments to take a closer look at the competition in the sector in which the Mersen group is positioned. Although it is the leader in most of the segments of this sector, Mersen faces some opponents that you should know and that we will present to you here:

SGL Group

First, Mersen's main competitors include the SGL Carbon Group, which is based in Germany and is one of the world's leading manufacturers of carbon products. The group's products include synthetic carbon and graphite materials and solutions, carbon fibres and composites. SGL currently operates more than 34 manufacturing facilities worldwide and markets its products in around 100 countries. It is listed on the SDAX stock exchange and employs over 5,000 people worldwide.

Siemens

There is also competition from the giant Siemens, whose many activities are in direct competition with those of Mersen. This German group is specialized in the fields of energy, health, industry and construction. It is also the largest private employer in Germany and the largest engineering company in Europe.

ABB Group 

Finally, we will also monitor the activities of the ABB Group or Asea Brown Boveri which is a Swiss-Swedish company specializing in energy and automation technologies. This company is also present in more than 100 countries and employs more than 136,000 people worldwide. The group is listed on the Zurich and Stockholm stock exchanges as well as on the New York Stock Exchange. It is the fifth largest company in the Swiss Market Index or SMI.


The major partners of Mersen

After having discovered the various competitors of the Mersen group, we propose to you to discover which were its principal partners during the last years. Indeed, the partnerships set up by this company are very important because their announcement has an impact on the share price and you should therefore take them into account.

TransPod

First and foremost and in 2015, the Mersen Group set up a partnership agreement with TransPod, a Canadian start-up that specializes in the design of a hyperloop system, i.e. an innovative transportation project dreamed up by Elon Musk in 2013.

ADP

Later, in 2016, the French group decided to call on the collaboration of ADP with the aim of making the management of its human resources, which had become increasingly complex, more fluid and thus more agile. Thanks to this collaboration, Mersen had already been benefiting from ADP's support since 2012 through ADP's dual business process management platform, which provides important support for HR decision-making thanks to data that is fed back and processed in the HRIS.

Longi

More recently, in 2017, the Mersen Group won a very important partnership contract with Longi, one of its historical partners. This contract comes at a time when the need for solar park installations around the world is constantly increasing and therefore requires investment in new solar cell production capacity. Longi is one of the world's pioneers in the manufacture of high efficiency monocrystalline silicon solar modules. The group is investing in new production furnaces at three production sites in China, for which Mersen will supply the high-quality graphite parts. Mersen is one of the only companies in the world with the capacity to meet the manufacturing requirements for this type of technology with very pure and large products. This partnership is of great importance as the contract amount has been set at 10 million euros over two years.

Trade the Mersen share!
82% of retail CFD accounts lose money. This is an advert for trading CFDs on XTB
Trade the Mersen share!
82% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on XTB