Électricite de Strasbourg Société Anonyme (ELEC.PA) fair value

ACCE thesis

Électricité de Strasbourg operates regulated and merchant power generation and distribution in France, with its own renewable production assets alongside the Strasbourg electricity network it runs. At a 1.1B EUR market cap and an 8.6x trailing P/E, the stock is priced for a business that is shrinking its top line: revenue fell 7.2% over the latest reported period, yet a 20.8% ROE and a 13.2% operating margin show the remaining earnings base is still profitable. The investment case rests on whether that revenue decline reflects a temporary drop in wholesale power prices, which tend to swing sharply in Europe, or a structural loss of volume and contracted income. Forward earnings are not available in the data, so the valuation cannot be checked against consensus, and that gap is the first thing to resolve before going further. The name is small, unindexed and thinly covered, so it deserves a deeper look only if the team can confirm the cause of the revenue drop and the durability of the margin.