Guillemot Corporation S.A. (GUI.PA) fair value

ACCE thesis

Guillemot Corporation designs and sells PC gaming peripherals, gaming chairs and audio accessories under the Hercules and ThrustMaster brands, with a 53.9% gross margin that is high for a hardware maker and suggests real brand pricing power. The stock trades at roughly 7.5 times forward earnings on a market cap of about 56M EUR, but the business is shrinking, with revenue down 4.1% and operating margin slightly negative at -0.6%, so there is no current earnings base to anchor the multiple. The tailwind is that the gaming accessories category is mature but cash-generative, and a cost reset could lift operating margin quickly if volumes stabilise, which is what a deeper look should test. The live question is whether the gross margin can survive a continued revenue decline without the company retreating into discounting, since a sub-10x multiple only pays off if profitability returns. Worth a focused review of the cost base and inventory position before anything else.