Gold By Gold SA (ALGLD.PA) fair value

ACCE thesis

Gold By Gold SA is a small Paris-listed company whose business centres on buying and reselling gold and precious metals, which gives it a thin 3.9% gross margin rather than the economics of a miner. The structural argument is that its revenue is tied to the gold price and to retail and jewellery-trade demand, so a rising bullion price lifts both the top line and the value of its inventory. Reported revenue grew 28.7% and return on equity sits at 19.7%, but the operating margin is still slightly negative at -0.8%, so the growth has not yet converted into operating profit. At a 14M EUR market capitalisation with a trailing P/E of 17.9 and no forward estimate, the company is too small and too thinly covered to lean on consensus, so any deeper look should start with the gross-to-operating margin gap and how much of the 28.7% growth came from volume versus price.