LAUNCH OF ALPHABLUNT!

Do you believe that governance is at the heart of the value created by the company?
 

AlphaValue is convinced of this with the launch of AlphaBlunt!, deliberately critical research focused on the challenges of corporate governance. This new offering exclusively focuses on in-depth analysis of governance, strategy, and accounting aspects. 

AlphaValue has always deployed ESG research with an unconventional eye. Since its creation in 2007, AlphaValue has recognized the importance of integrating non-financial elements and credit risk into the fundamental analysis of companies. AlphaValue distinguishes itself notably by bridging the gap between equity research and ESG research, impacting in real-time the valuation of a security through its sustainability score: a governance change can thus affect the target price.

With AlphaBlunt!, AlphaValue goes further and offers a detailed written analysis on corporate governance and individuals to a limited number of clients. This rich product must be understood as an overlay of AlphaValue's research, distinguished by its discipline and integrity of discourse.

Below are summaries of the first three studies already available on our website. 

BUREAU VERITAS - ROBUST. WAITING FOR WENDEL

Like its peers, Bureau veritas is a cash machine. However, Wendel has turned it into a sleeping beauty, prioritizing dividends. This is no longer enough. 

1. Two unknowns regarding the valuation of the stock.
2. The appointments and organizational adjustments suggest a well-defined project with ambitions, both in terms of growth and profitability, in CIF (Commodities, Industries and Facilities), which accounts for 80% of the activity.
3. Wendel, for its part, must make a more evident contribution to the company’s project. The quality of the Board and greater integration of the management team should contribute to this.

ALSTOM - DEEPER CHANGES EXPECTED

Alstom's current balance sheet weakness is a result of accounting and distribution decisions made from 2014 to 2020, which were incompatible with the subsequent acquisition of Bombardier. The current leadership lacks credibility and must undergo a change.

While the stock is undervalued, the conditions for a recovery are undefined, and the team entrusted with this responsibility shall not be the current one.

1. The company has embarked on a strategy of consolidation with improved performance but lacks a clear management model.
   
2. A notable example is the appointment of a number 2 executive from Bombardier with no experience in rail or restructuring. If Alstom had a clear model, it would have prioritized internal talent for such a crucial role.
   
3. The absence of a clear model, coupled with a financial situation weakened by an exceptional distribution policy and costly accounting choices, presents challenges.
   

4. A successful corporate realignment requires careful consideration of these factors. It remains uncertain whether the decisions announced in November 2023 alone can rebuild trust.

PERNOD RICARD - PERNOD'S NEW MANAGEMENT COCKTAIL

Pernod adopts a more streamlined Corporate organization. The concern for greater operational efficiency is evident. This is accompanied by fresh blood.

The choices announced at the end of August introduce significant changes in the execution management:

1. It is simplified with the disappearance of the Executive Board.
2. It is streamlined: Brands and Markets now have a single leader.
   
3. A COO position is created and entrusted to an external hire.
   

4. Combined with the arrival of a genuine Consumer Products manager on the Board of Directors, these elements reflect a greater openness to market dynamics.

If you are interested in any of these articles, or would like to be kept informed of future releases, 

please write to sales@alphavalue.eu, or visit www.alphavalue.com

The original document is in French, supplemented by an English version. The product is available in both languages on the AlphaValue website under the name AlphaBlunt!