SAINT-GOBAIN

Analysis of Saint-Gobain share price

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Maybe you are interested in enlarging your online stock market investment portfolio to include large French companies that are included in prestigious indices such as the CAC 40. In this case the Saint-Gobain Company, a specialist in construction materials, may already be known to you. But before launching into speculation of this highly successful company shares we recommend you learn more details about its activities and some important information that will enable you to make an effective analysis of its share price.

Latest news

Saint-Gobain: further optimization of its business portfolio

06/09/2021 - 09h22

The building materials specialist Saint-Gobain has recently completed several divestments. These are part of its objective to optimize its business portfolio

Elements that can influence the price of this asset:

Analysis N°1

Among the most important elements to be taken into account with regard to the Saint Gobain company, particular attention will be paid to the creation and development of new products by the group and its ability to produce them quickly in order to meet new market demands and to differentiate itself from its competitors.

Analysis N°2

The group's strategy to win more and more international customers is also an important element to watch out for, particularly with regard to the creation of production centres in certain strategic and expanding markets. This also includes the creation of various alliances with other companies or institutions.

Analysis N°3

The diversification of Saint Gobain's activities, technologies and products is also an interesting springboard for its sales and is one of the indicators to be closely monitored.

Analysis N°4

Of course, it is important to keep an eye on competition in this sector, particularly with regard to the growth of Asian competitors such as Chinese companies.

Analysis N°5

Finally, the various financial results of this group will obviously be monitored with its quarterly or annual publications.

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General presentation of Saint-Gobain

As stated above, Saint-Gobain is one of the leaders in the manufacture and sales of construction materials on an international level. Its activity takes place mainly in Europe but also touches other countries and areas worldwide.

Nowadays, the activities of the Saint-Gobain Company are divided among various activity sectors of which here are the details:

  • The distribution of materials represents 49% of the group’s activity with over 4,200 sales points throughout the world under the following brand names; Point P, Lapeyre, Jewson, Graham, Raab Karcher, Dahl, ‘La Platforme de Batiment’, and Orientale.
  • Construction products represent 27.5% of the company’s activity with plaster, insulation, industrial mortars and tubing.
  • To conclude, innovative materials represent 23.5% of the group’s activity with high performance materials and glazing.

Let us now look at the geographic details of the turnover achieved by the Saint-Gobain Company. 27% of its turnover was achieved in France, 42% in Western Europe, 12% in North America and 19% in emerging countries and Asia.

The price of Saint-Gobain shares is currently quoted in the section A of the Euronext Paris stock market in France. Saint-Gobain Company shares are also included in the composition of the CAC 40, the National French share market index, this places Saint-Gobain among the top 40 French companies in terms of stock market capital.

Analysis of Saint-Gobain share price
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The major competitors of Saint-Gobain

We now propose to discover in a little more detail who the main competitors of the Saint-Gobain group are in its sector of activity and the different segments that make it up, with a presentation of the main current players.

Lapeyre

Of course, the Lapeyre group is the first direct competitor of the Saint-Gobain group. Formerly known as Menuiseries Lapeyre, it is a French company founded in 1931 by the engineer Martial Lapeyre. It specialises in the production and sale of joinery such as doors, windows, staircases, cupboards, gates and fences or other materials and supplies for home furnishings, especially bathrooms and kitchens. The company currently has 128 shops and employs over 3,600 people.

Sika

Another competitor of Saint-Gobain is the Swiss company Sika, which is a Swiss company and specialises in the production of building materials. This company is active internationally in specialised chemical sectors. It also supplies the fields of sealing, bonding, soundproofing, reinforcement and protection of structures. Sika has a worldwide presence with representation in 94 different countries and owns and operates 170 production and sales sites.

Boral Limited

Another competitor is the Boral Limited Group, a multinational company specialising in the manufacture and supply of building materials. It was established in Australia but also has operations in the USA and Asia. The group is also large in terms of its workforce, employing approximately 17,000 employees in over 17 countries and in 672 operating locations and 154 sales locations. Its headquarters are located in Sydney, Australia.

Jewson

Finally, the Jewson Group is also a direct competitor of Saint-Gobain. It is one of the largest UK general merchants.  Jewson markets its products to small and medium-sized contractors in the construction sector. The group's chain of shops currently has over 600 branches throughout the UK.


The major partners of Saint-Gobain

The Saint-Gobain Company spends a large amount of money on research and innovation and therefore needs to implement numerous alliances and strategic partnerships with other companies to lower its production costs and fees. A number of large French companies are therefore current partners of Saint-Gobain.

Point S

This is the case with the company Point-S to which Saint-Gobain entrusted the maintenance of its fleet of vehicles which comprises several tens of thousands.

Publicis

More recently, in 2017, the Saint-Gobain Group entrusted its communications to the French Group Publicis after an invitation for tenders.

Sisecam

Finally, on the international level, Saint-Gobain has signed a strategic partnership in Egypt with Sisecam for the construction of a factory to produce 900 tons of glass every day for the unique destination of the Egyptian market.

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The factors in favour of a rise in the Saint-Gobain share price:

One of the biggest advantages of Saint Gobain is currently its position as number one in housing. The group which was created in 1665 benefits from long experience which has enable it to strongly diversify its activities over time. Today, Saint Gobain has reorganized its activities into 4 complementary divisions, mainly with the distribution which represents more than 47% of the company’s sales, construction products represent 31% of the company’s sales, innovating materials and flat glass represent 24% of the company’s sales and packaging with the brand Verallia.

Saint Gobain is currently benefiting of the strong climate issues that are particularly affecting the sector of construction with the need to reorganize the market around energy efficient constructions. Saint Gobain is particularly well positioned in this sector thanks to its constant innovations in improving energy efficient constructions. This specificity represents in fact more than 32% of the sales made by the company mostly in France.

Even if Saint Gobain is currently the leader in its sector of activity in France, it also counts with an excellent positioning on the international market. Its market shares abroad have indeed been increasing since some years now. The company does around 26% of its activity on the French market, 43% in the rest of Western Europe and 15% in emerging countries and North America, the internationalization of the company’s activities has accelerated since 2016

Regarding the opportunities to seize by Saint Gobain’s in the near future, we can notice that the company has put in place a strategy primarily based on a priority of products and solutions with significant added value. The latter should indeed increase of 53% of sales for the year 2018 compared to only 24% in 2013. To achieve this goal, Saint-Gobain counts with the creation of various partnerships with targeted start-ups.

Saint Gobain’s desire to maintain a local implantation of its distribution units, which offer real advantages in terms of competitiveness compared to its competitors outside Europe. In fact, Saint-Gobain remains very competitive in exporting thanks to the recent loss of points of the Euro against the dollars which facilitates sales in the United States.

Finally, investors are also reassured by the fact that Saint-Gobain has managed to find a healthy financial situation, which allows it to buy,back its shares.

The factors in favour of a drop in the Saint-Gobain share price:

Saint Gobain shares remain a favorite choice for investors that want to speculate on the French stock market. But if the advantages of this security are undeniable and numerous, you must also take into account some weaknesses that may represent a threat for the future of the company. Here are therefore the weaknesses that you should know about this asset.

Saint Gobain’s main weakness concerns the cyclical aspect of its activity. In fact,the majority of the company’s sales are in the construction market, its growth prospects are therefore closely related to those of the real state sector which as we know is particularly unstable.

Saint Gobain securities could also be impacted by recent news since the takeover of Sika is currently lagging. Let’s remember that in 2015, Saint Gobain bought 16.1% of the company’s capital from the family holding company and 52.4% of its voting rights. The opposition of some of the directors of the Swiss company in 2016 has made Saint Gobain loose valuable time and they are still suffering the consequences.

The current period is not conducive to significant growth in the sector of activities of saint Gobain. In fact, its results in France disappointed the investors in 2016 with a decline in sales in France, which represent almost 25% of the company’s sales. The results obtained in the United States showed a decline too, even if less important and unfortunately these losses are not compensated by its results in the rest of the world which seem stable.  A warning on the results launched by the end of 2015 scared the investors and made Saint Gobain shares lose some points on the stock market.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What sources of information are made available by the Saint Gobain Group to its shareholders?

If you purchase shares in the Saint Gobain Group then you will of course be able to access different information sources for the attention of the shareholders. The group notably posts on its online website a letter to the shareholders, published three times a year, as well as a shareholders guide. Without needing to buy these shares you can also find all the important information about this company online on its official website or on your trading platform, together with the company’s most recent stock market share price. 

What are the subsidiary companies of the Saint Gobain Group?

The Saint Gobain group exercises its activities through different subsidiaries among which we particularly note the following: Saint-Gobain Glass, Saint-Gobain Sekurit, Norton, Saint-Gobain SEFPRO, British Gypsum, Certain Teed, Ecophon, Eurocoustic, Gyproc, Isover, Saint-Gobain PAM, Placoplatre, Rigips, Weber, Groupe Lapeyre, La Plateforme du Bâtiment, Décoceram, Point P and France Pare Brise.      

What are the major financial results and figures to know about Saint Gobain?

Do you want to learn more about the value of the Saint Gobain Company on the stock markets? According to the latest figures and published results, we particularly note that the total stock market capital of the group stood at 20,348 million Euros at the end of 2019. For the 2019 financial year the group achieved a turnover of 42.6 billion Euros with a net result of 1.92 billion Euros.

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