Esprinet (AO) | Buy | Q1 a beat. Supportive guidance for FY26

Research evidence excerpt

Esprinet (AO) | Buy | Q1 a beat. Supportive guidance for FY26

scence of distributed products might pressure gross

segment, keeping a more efficient structure. margin. Industry innovation remains fundamental.

Catalysts The conversion of retailers/e-tailers towards an omni-channel

Increasing penetration on revenues from more value-added business model, which is now considered key to surviving in the

products/services. retail space, requires big investments, which could squeeze

Adjacencies to other sectors such as sustainability. distributors' profitability.

Increase in AI demand and ovverall launch of innovative Potential weak sales momentum may weigh on the stock's

products. performance, notwithstanding the cheap valuation.

Key data charts

Price performance Sales split by region Sales split by division

SWOT analysis

Strengths Weaknesses

Leading positioning in Southern Europe. Thin margins.

Scalable business, with little cost sensitivity to volumes. Concentration of revenues in two countries, Italy and Spain (90%+).

Growing presence in high-margin, high-growth, advanced solutions. Concentration of suppliers.

Level of customer service thanks to IT and logistical capabilities. High importance of working capital.

Opportunities Threats

Highest growth rates in most profitable divisions. Limited innovation in the TCL and PC product categories.

Benefiting from delay in IT spending in Southern Europe. On-line competition putting pressure on certain Esprinet clients.

Distribution of white goods, and new product categories in general. Higher spending to keep up with standards set by Amazon, Apple, etc.

AI may boost the market. Changes in distribution models that limit the role of distributors.

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