Signaux Girod SA (ALGIR) AI Stock Analysis

• Market Cap: €16.17M
• Dividend Yield: 9.97%
• Average Volume (3M): 399.00
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.50
• Revenue Growth: -1.03%
• EPS Growth: -91.26%
• Country: FR
• Employees: 774
• Sector: Services
• Sector Strength: N/A
• Industry: Railroads
• EPS (TTM): 0.75
• Shares Outstanding: 1,032,500
• 10 Day Avg. Volume: 200
• 30 Day Avg. Volume: 399
• PEG Ratio: -1.63
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 10.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €19.00 ▲(27.09% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by mixed financial performance: a resilient balance sheet but weak recent operating results (sharp 2025 revenue decline, very thin margins, and lower free cash flow). Technicals are supportive with the price above major moving averages and positive MACD, while valuation is helped by a very high dividend yield but tempered by a mid-range P/E given current profitability.

Positive Factors

Balance sheet resilience

Low and stable leverage with consistently high equity provides lasting financial flexibility. That balance-sheet strength helps the company absorb cyclical dips in infrastructure spending, maintain access to financing, and fund capex or upkeep without forcing fire-sales or rapid deleveraging, supporting operational continuity over months.

Durable product gross margins

A recurring gross margin in the high-20s to mid-30s indicates structural margin on products and manufacturing. This margin band suggests the core road equipment business retains pricing or cost advantages that can absorb modest input cost swings and supports longer-term profitability if revenue volumes stabilize or recover.

Positive operating cash generation

Consistent positive operating cash flow in recent years shows the business can convert revenue into cash even amid volatility. That ability underpins routine capex, working-capital needs, and dividend capacity, reducing reliance on external funding and enabling steady operational execution over the medium term.

Negative Factors

Sharp 2025 revenue decline

A near-40% revenue drop in a single year materially reduces scale and weakens fixed-cost absorption. This level of deterioration can persist over quarters when public infrastructure projects are delayed or contracts are lost, making recovery dependent on order flow normalization and creating risk to margins and cash conversion in the medium term.

Very thin operating and net margins

Operating and net margins near zero leave almost no cushion for input-price inflation, project overruns, or contract pricing pressure. Such compressed profitability limits reinvestment, depresses ROE, and makes earnings highly sensitive to small revenue swings, increasing structural earnings volatility over the next several quarters.

Inconsistent free cash flow and 2025 drop

A large, recent FCF decline and historically uneven conversion indicate working-capital or timing pressures. Even with positive operating cash flow, volatile free cash flow undermines the firm's ability to sustain dividends, invest in growth, or buffer against downturns without tapping balance-sheet flexibility, raising medium-term risk.

Signaux Girod SA Business Overview & Revenue Model

Company Description

Signaux Girod S.A. designs, manufactures, markets, installs, and maintains sign equipment worldwide. The company offers police signage, directional signage, site signage, flower displays, and urban furniture. It also provides markings; floor markings; road markings; and street signs and house number markings. The company was formerly known as Société Française de Signalisation. The company was founded in 1905 and is headquartered in Bellefontaine, France. Signaux Girod S.A. is a subsidiary of Gestion Girod.

How the Company Makes Money

The company primarily makes money by selling road equipment and traffic infrastructure products and associated services to customers that need to equip, maintain, or upgrade road networks (e.g., public authorities, infrastructure operators, and private contractors). Key revenue streams are expected to include (1) sales of physical products (notably road signs and related traffic safety/management equipment), and (2) project-based revenues tied to the supply and, where applicable, installation or deployment of these products as part of traffic-infrastructure works. null

Signaux Girod SA Financial Statement Overview

Summary

Balance sheet strength is a clear support (manageable, stable leverage and high equity), but operating performance is weak: 2025 revenue fell sharply (-39%), margins are very thin (net ~0.8%, operating ~1.3%), and free cash flow dropped materially in 2025 with mixed consistency over time.

Income Statement

Profitability has improved versus the 2020–2022 loss-making period, with positive net income in 2023–2025 and a stable gross margin around ~29–35%. However, the current earnings profile is thin: in 2025 net margin is ~0.8% and operating margin ~1.3%, and revenue momentum is weak with 2025 showing a sharp decline (-39%) after a small dip in 2024. Overall, the business has returned to profit but remains low-margin and more exposed to swings in demand/volume.

Balance Sheet

Leverage appears manageable and fairly stable, with debt-to-equity around ~0.30–0.38 across the period and equity consistently high relative to total assets. This provides balance-sheet resilience despite recent earnings softness. The main drawback is modest shareholder returns in the most recent year (ROE ~1.5% in 2025), reflecting weak profitability rather than financial strain.

Cash Flow

Cash generation is positive, with operating cash flow remaining solid in 2024–2025 (EUR 11.2m and EUR 5.9m) and free cash flow positive in those years as well. That said, cash flow quality and consistency are mixed: free cash flow dropped sharply in 2025 (down ~59% to EUR 1.5m), and free cash flow is low versus net income in 2025 (about ~25%), following stronger conversion in 2023–2024. Earlier years also show variability including negative free cash flow in 2021–2022.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	101.60M	101.83M	105.25M	102.58M	94.77M
Gross Profit	31.34M	29.58M	37.04M	29.87M	27.14M
EBITDA	6.64M	8.99M	7.25M	535.00K	2.55M
Net Income	800.00K	880.00K	2.98M	-3.65M	-1.47M
Balance Sheet
Total Assets	90.98M	95.59M	96.27M	88.03M	91.58M
Cash, Cash Equivalents and Short-Term Investments	17.14M	20.44M	16.73M	5.44M	4.36M
Total Debt	18.75M	20.19M	20.93M	15.48M	16.78M
Total Liabilities	37.30M	40.82M	41.15M	36.51M	36.72M
Stockholders Equity	53.67M	54.77M	55.12M	51.52M	54.86M
Cash Flow
Free Cash Flow	1.50M	7.43M	7.33M	-133.00K	-1.10M
Operating Cash Flow	5.93M	11.18M	11.77M	3.59M	3.86M
Investing Cash Flow	-3.97M	-2.32M	-4.08M	-2.32M	-4.05M
Financing Cash Flow	-4.64M	-5.86M	3.87M	-635.00K	-2.48M

Signaux Girod SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALGIR, the sentiment is Positive. The current price of 14.95 is below the 20-day moving average (MA) of 17.45, below the 50-day MA of 16.40, and below the 200-day MA of 15.23, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 84.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALGIR.

Signaux Girod SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALGIR	64 Neutral	€16.17M	4.62	0.46%	9.97%	-1.03%	-91.26%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%