The Spie share is one of the stock market shares that interest more and more investors in France but also all over the world. In this detailed article, we propose you to discover more about this company with the detail of its various activities, its global economic environment with its main competitors and its recent partnerships, but also the strengths of this stock and its main weak points. Finally, we will explain to you in detail how to follow this stock efficiently thanks to some simple stock market tips to develop your fundamental analysis of this stock and thus to anticipate in a more efficient way the next basic trends of this stock on the stock market charts. You will then have all the cards in hand to study this increasingly popular stock on the market.
First of all, given the nature of SPIE's activities, we will of course keep a close eye on the regulations in force in Europe, particularly with regard to public procurement, but also to the management of electrical waste and subcontracting.
We will also follow the evolution of public orders, which alone still represent more than 14% of the company's revenues.
Of course, all operations aimed at expanding SPIE's market share in Europe will be of vital importance, as will operations aimed at turning around sales in certain countries such as France, the Netherlands and Germany.
The indications given by the company as to the annual objectives in terms of increase in production in particular or growth or margin are numerous and can be compared with the objectives actually achieved in order to evaluate the possible future variations of its share in the stock market. Indeed, many investors use this type of indication to adjust their positions.
Lastly, as explained above, it is also necessary to keep a close eye on SPIE's direct and indirect competitors and on the evolution of market shares in this sector in Europe.
SPIE is a French company specialising in multi-technical services. It is active in the fields of electrical, mechanical and HVAC engineering, communications systems and energy-related services. The SPIE Group is responsible for the design, construction, operation and maintenance of energy-efficient and environmentally friendly facilities.
Geographically, the SPIE Group operates mainly in France. More than 44% of the company's sales are generated in France alone. Germany is the group's second largest market, accounting for 25.3% of turnover. Finally, the remaining 30.7% of turnover comes from the rest of the world but is mainly realised in Europe.
Let's take a few moments to recall the important economic and financial events that have marked the recent history of this company and that may have had an influence on its share price:
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You should also take a close look at the company's competition. Indeed, Spie operates in a particularly competitive sector, which exposes it to both small and medium-sized competitors and also to large opponents who represent a real threat to its market share. These are the most important competitors that we will now present to you in more detail.
First of all, we're going to talk about the Dalkia group, which is Spie's direct competitor and which is also a French company specialising in energy services and decentralised energy production. It develops, among other things, alternative renewable energies such as biomass, geometry, biogas and energy recovery with the use of heat released by industrial sites or data centres or the use of energy from waste. Note that this company is also a subsidiary of the French energy group EDF since 25 July 2014. Its turnover reached more than €4 billion in 2018 and the Dalkia group currently employs nearly 16,000 people.
Another serious competitor of Spie is the subsidiary Engie Cofely of the Engie group. This company is indeed one of the current leaders of the energy transition on the French market and its membership of one of the first energy leaders in the world is not a coincidence. It is a company specializing in energy and environmental efficiency services that offers companies and local authorities solutions to make better use of energy and reduce their environmental impact.
It goes without saying that the other French construction and infrastructure giant, Bouygues, is one of the competitors that you should take into account when analysing Spie's share price. Indeed, this industrial group is currently structured into three main business segments including construction with Bouygues Construction, Bouygues Immobilier and Colas, telecoms with Bouygues telecom and media through the TF1 group it owns. In 2018, the group generated sales of over €35,555 million. It operates internationally with a presence in nearly 93 different countries and currently employs more than 129,000 people, many of whom work internationally. It is worth noting that this group is one of the companies included in the French CAC 40 stock market index and that it is even the leading listed company in terms of employee shareholding, with 19% of the group's shares owned by employees.
In recent years, the PIE Group has also been able to count on the establishment of certain partnerships and strategic alliances with other large companies in order to develop its activities and gain in profitability. These alliances are very interesting to study because they can have a real influence on the stock market price. Past collaborations show that each partnership is often closely followed by effects on the SPIE share price. This makes it easier to understand how closely this type of collaboration should be followed when you want to trade this share price. To do this, you simply need to follow the company's news closely, for example by subscribing to a personalised news feed or by consulting the official communications relayed by the company directly on its website. Finally, it should be noted that these partnerships are often considered as interesting entry points to the market. We propose here to discover the most recent alliances that this company has set up and their interest for the company.
As an example and in 2010, the SPIE Group set up a partnership with one of the major leaders of the energy market in Europe, namely the French group EDF. The aim of this alliance was to promote energy efficiency. The EDF Group was thus able to meet its customers' expectations regarding energy and financial performance and better control of the impact of its activities on the environment. The two companies have therefore decided to collaborate through this partnership agreement. Thanks to this partnership, EDF has also been able to improve its brand image by demonstrating its commitment to promoting energy efficiency, renewable energies and the most effective technologies from an environmental point of view.
More recently, in 2018, SPIE joined forces with the Capgemini group. Under a partnership with this company, an industrial alliance has been created that targets the user support market in France. More specifically, this involves on-site maintenance and support for workstations and associated equipment. The SPIE Group, and more specifically its subsidiary SPIE ICS, will become Capgemini's exclusive partner for these services. The two companies will thus take advantage of this commercial and operational alliance to mutually benefit from the expertise of each of these two entities in this particular segment, namely infrastructure management. It should be noted, however, that these two companies have already been working together since 2013 and have notably created various projects together such as the implementation of the Commissariat à l'Energie Atomique et aux Energies Alternatives or CEA as well as the Direction Générale de l'Armement or DGA.
Also in 2018, SPIE's French subsidiary ICS and SPIE Industrie et Tertiaire signed a partnership agreement with the European company IoT Valley made up of start-ups specialising in the Internet of Things. The two entities hope to pool their knowledge and expertise to more effectively meet the needs of SPIE's customers in the areas of the Internet of Things and technological innovation in general.
The SPIE Group's main strength is undoubtedly its position in the European multi-technical services market, where it is the second largest provider. This highly specific segment includes the design and maintenance of electrical, mechanical and HVAC installations. It represents nearly 4% of the total market.
The division of the group's activities into four main operating divisions worldwide is also interesting from a geographical point of view. Although France generates the largest share of the company's revenue, SPIE operates throughout Europe, mainly in Germany and northern Europe, with a small share of business in Eastern Europe.
The fact that SPIE's target market is particularly fragmented is another advantage for the company. The market is driven by the outsourcing of services, which means that it is growing faster than Europe's GDP.
We also appreciate the concentration of the group's strategy in three main types of activities: mechanical and electrical activities, which represent 44% of the company's revenues, communication and information technology services, which generate 22% of the revenues, and technical management of installations, which represents 34% of the revenues.
Shareholders and investors also appreciate the very good visibility of the company's future results thanks to the recurring aspect of maintenance activities, which represent more than 80% of revenues, and thanks to a very low industrial risk given the good diversification of the group's clientele and the lower proportion of one-off contracts.
From a purely financial point of view, we can also appreciate the SPIE Group's ability to maintain decent margins even in the event of a decline in sales. To achieve this, the Group relies in particular on increasingly strong external growth, the objectives of which remain very encouraging. Generally speaking, SPIE's financial position is more than satisfactory, with a payout ratio of around 40%.
The first shortcoming of this company is its partial dependence on public investment in the French market. However, these investments have been decreasing in recent years in France and in other European countries.
SPIE is also currently experiencing revenue losses due to a significant drop in orders from the oil and gas industry, particularly as a result of the recent decline in oil prices. Naturally, this has a direct impact on the group's revenue growth.
Another major risk for SPIE is the current rise in wages in Germany and the United Kingdom, which is causing the company to lose operating margin.
Still in the United Kingdom, the significant fall in the value of the pound sterling against the euro is also a source of difficulty for the company, which is also losing profitability because of this unfavourable exchange rate.
Finally, stock market analysts and investors who analyze the charts note a weak movement in the price of this stock over time. Indeed, SPIE's stock, which was first listed in 2015, has only gained a few weak points since that introduction.
SPIE's share price is currently listed on compartment A of the NYSE Euronext Paris market. It was on 10 June 2015 that this company was floated on the stock market with trading starting on the same day. At the time of its first listing, SPIE's share price was €16.50. Since then, the share price has changed significantly, as you can see from the stock charts.
You can visit the SPIE Group's website to consult the agenda of the most important news. You can also subscribe to an RSS feed in order to automatically receive all the stock market news concerning this group. Finally, you can also contact the group's investor relations team or use a free application provided by SPIE.
The main stock market index on which the SPIE Group's shares are listed is of course the CAC and more precisely the CAC All Shares. But this is not the only index on which the company is listed. SPIE is also listed on the CAC All Tradable index, the CAC Mid 60, the CAC Mid Small, the Next 150, the PEA and the SBF 120, i.e. more than seven indices in all.
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