Groupe Guillin S.A. (ALGIL.PA) fair value

ACCE thesis

Groupe Guillin makes plastic food packaging and disposable tableware in France, sold largely to European retail and food-service customers, with a sizeable share of its output in private-label containers. The advantage is scale in a niche where customers buy on reliability and cost rather than brand, and the 36.7% gross margin reflects a business that holds pricing better than a commodity converter would. The near-term driver is less about volume, since revenue grew only 1.0%, and more about whether the company can keep margins at an 8.2% operating level as resin costs move. At a trailing P/E of 7.6 and a forward P/E of 6.6, the market is pricing in little growth, so the question for a PM is whether a 7.5% ROE and a 368M EUR market cap make this a value candidate worth a deeper look or a low-return business that stays cheap for good reason.