Cegedim SA (ALCGM.PA) fair value

ACCE thesis

Cegedim sells practice-management software, prescriber data and healthcare communications tools to French physicians, pharmacies and pharma marketing teams, a mix that makes it one of the few listed French vendors with a foothold in both the clinical software and life-sciences data markets. The moat is mostly installed base and data assets rather than technology: the company's software sits inside a meaningful share of French GP and specialist workflows, and that stickiness supports a 42.3% gross margin. Top-line growth has stalled at 0.7%, so the case rests on margin repair, with operating margin at 5.5% and a P/E of 10.8 against a forward P/E of 6.9 implying the market expects earnings to rise. At a EUR 141M market cap and no index membership, the stock is small and under-followed, which is where mispricing tends to sit. The question for a deeper look is whether the margin expansion the forward multiple implies is visible in the cost base, and whether a 4.3% ROE can rise without a growth rebound.