Lectra SA (LSS.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Lectra SA designs smart industrial solutions for fashion, automotive, and furniture markets.The company's solutions include software, automated cutting equipment, and related services, which enable customers to automate and optimize product design, development, and manufacture of garments, car seats and interiors, airbags, and sofas, as well as to digitalize their processes.It also offers technical maintenance, support, training, and consulting services; and sells consumables and parts.

The company operates in Europe, the Americas, the Asia-Pacific, and internationally.Lectra SA was founded in 1973 and is headquartered in Paris, France.

Show Full description

1.b. Last Insights on LSS

Lectra SA's recent performance is driven by strengthened fundamentals despite a challenging environment. The company's recurring revenues grew 2% in the first nine months of 2025, with a 13% increase in SaaS subscription contracts. Lectra's security ratio improved to 96% for the period. The company withdrew its 2025 guidance due to ongoing market uncertainty, particularly trade tensions. Additionally, Lectra's shareholder base remains stable, with a total of 38,046,200 shares composing the company's capital as of October 31st, 2025.

1.c. Company Highlights

Last Price	23.7
Change Percentage	-0.42%
Open	23.8
Previous Close	23.8
Market Cap ( Millions)	900
Volume	38940
Year High	30.55
Year Low	21.45
M A 50	23.29
M A 200	24.41

FCF Yield	9.65%
Dividend Yield	1.69%
ROE	9.20%
Debt / Equity	37.15%
Net Debt / EBIDTA	67.92%
Price To Book	2.74
Price Earnings Ratio	29.23
Price To FCF	10.36
Price To sales	1.71
EV / EBITDA	10.66

2. Transcript Summary

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3. NewsRoom

European Value Stocks Priced Below Estimated Worth

Dec -03

Source:

Mango Tangos With TextileGenesis for Supply Chain Mapping

Nov -13

Source:

Lectra: Monthly declaration of the total number of shares and voting rights composing the company's capital (at October 31st, 2025)

Nov -12

Source:

European Growth Companies With High Insider Ownership In November 2025

Nov -06

Source:

Will Withdrawing 2025 Guidance Amid Trade Tensions Change Lectra's (ENXTPA:LSS) Investment Narrative?

Oct -30

Source:

LECTRA: First nine months of 2025: strengthened fundamentals in a challenging environment

Oct -29

Source:

LECTRA: Q3 and First Nine Months of 2025 Financial Report available

Oct -29

Source:

LECTRA: Monthly declaration of the total number of shares and voting rights composing the company's capital (at September 30th, 2025)

Oct -08

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.28%)

6. Segments

Consumables and Parts

Expected Growth: 10%

Lectra SA's Consumables and Parts segment growth is driven by increasing demand for automated cutting solutions in the fashion, automotive, and furniture industries. The company's innovative products, such as the Virga and Vector cutting systems, are gaining traction, leading to a 10% growth rate. Additionally, Lectra's strategic partnerships and expanding global presence are contributing to the segment's growth.

Equipment and Accompanying Software

Expected Growth: 12%

Lectra SA's Equipment and Accompanying Software segment growth is driven by increasing adoption of Industry 4.0 technologies, rising demand for automation and digitalization in the fashion industry, and growing need for data-driven design and production processes. Additionally, Lectra's innovative solutions and strategic partnerships are expanding its market share, contributing to the 12% growth.

Equipment and Accompanying Software Maintenance Contracts

Expected Growth: 9%

Lectra SA's Equipment and Accompanying Software Maintenance Contracts growth is driven by increasing adoption of Industry 4.0 technologies, rising demand for automation and digitalization in the fashion and apparel industry, and growing need for predictive maintenance and IoT-enabled services, resulting in a 9% growth rate.

Software Maintenance Contracts

Expected Growth: 8%

Lectra SA's software maintenance contracts growth is driven by increasing adoption of Industry 4.0 technologies, rising demand for digitalization in fashion and apparel industries, and growing need for cost-effective solutions. Additionally, Lectra's strong customer relationships, high-quality services, and strategic partnerships contribute to the 8% growth rate.

Software Subscriptions

Expected Growth: 13%

Lectra SA's 13% growth in Software Subscriptions is driven by increasing adoption of Industry 4.0 technologies, rising demand for digitalization in fashion and apparel industries, and the company's strategic expansion into new markets and geographies. Additionally, the growing need for data analytics and IoT integration in manufacturing processes also contributes to this growth.

Training and Consulting Services

Expected Growth: 11%

Lectra SA's 11% growth in Training and Consulting Services is driven by increasing adoption of Industry 4.0 technologies, rising demand for digital transformation in fashion and apparel industries, and expansion into new geographies. Additionally, Lectra's expertise in providing customized training and consulting services to clients has contributed to its growth.

Perpetual Software Licenses

Expected Growth: 10%

Lectra SA's perpetual software licenses growth is driven by increasing adoption of Industry 4.0 technologies, rising demand for digitalization in fashion, automotive, and furniture industries, and the company's strong market position in CAD/CAM and PLM software. Additionally, Lectra's strategic acquisitions and partnerships have expanded its customer base and improved its product offerings, contributing to the 10% growth.

Miscellaneous

Expected Growth: 9%

Lectra SA's Miscellaneous segment growth of 9% is driven by increasing demand for Industry 4.0 solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, particularly in areas like artificial intelligence and IoT, has contributed to the growth. Furthermore, the rising need for digitalization and automation in various industries has also boosted the segment's performance.

7. Detailed Products

DesignConcept

A 2D/3D design software for fashion, automotive, and furniture industries

Modaris

A 2D and 3D pattern making and grading software for fashion and apparel industry

Diamino

A fabric cutting software for fashion, upholstery, and other industries

Vector

A software for automated cutting and nesting of fabrics, composites, and other materials

Valiani

A software for automated cutting and nesting of leather, fabrics, and other materials

Kaledo

A product lifecycle management (PLM) software for fashion, apparel, and textile industries

Texo

A textile and fabric inspection software for quality control and defect detection

8. Lectra SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lectra SA is moderate due to the presence of alternative textile and fashion companies.

Bargaining Power Of Customers

The bargaining power of customers is low for Lectra SA as the company has a strong brand reputation and a diverse customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Lectra SA as the company relies on a few key suppliers for its raw materials.

Threat Of New Entrants

The threat of new entrants is high for Lectra SA as the textile and fashion industry is highly competitive and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high for Lectra SA as the company operates in a highly competitive industry with many established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	20.74%
Debt Cost	4.56%
Equity Weight	79.26%
Equity Cost	9.83%
WACC	8.73%
Leverage	26.17%

11. Quality Control: Lectra SA passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Pexip

A-Score: 5.5/10

Value: 1.4

Growth: 7.1

Quality: 7.5

Yield: 3.8

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

IVU Traffic Technologies

A-Score: 5.2/10

Value: 2.7

Growth: 5.0

Quality: 7.6

Yield: 1.9

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

Lectra

A-Score: 4.2/10

Value: 4.2

Growth: 5.8

Quality: 6.5

Yield: 1.9

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

Cerillion

A-Score: 3.7/10

Value: 1.2

Growth: 5.8

Quality: 9.1

Yield: 1.2

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

Swvl

A-Score: 2.9/10

Value: 6.8

Growth: 4.6

Quality: 3.0

Yield: 0.0

Momentum: 3.0

Volatility: 0.3

1-Year Total Return ->

Tracsis

A-Score: 2.9/10

Value: 4.8

Growth: 3.9

Quality: 5.2

Yield: 0.6

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.12%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.73%

Lectra SA - FR0000065484

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LSS

1.c. Company Highlights

Fairly Valued

Stable Momentum

Average Quality

Revenues Beats

Medium Volatility

Revenues Miss

Weak Momentum

Average Yield

Earnings Miss

Earnings Beats

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.28%)

6. Segments

Consumables and Parts

Expected Growth: 10%

Equipment and Accompanying Software

Expected Growth: 12%

Equipment and Accompanying Software Maintenance Contracts

Expected Growth: 9%

Software Maintenance Contracts

Expected Growth: 8%

Software Subscriptions

Expected Growth: 13%

Training and Consulting Services

Expected Growth: 11%

Perpetual Software Licenses

Expected Growth: 10%

Miscellaneous

Expected Growth: 9%

7. Detailed Products

DesignConcept

Modaris

Diamino

Vector

Valiani

Kaledo

Texo

8. Lectra SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Lectra SA passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.7$

Current Price

23.7$

Potential

12.e Scoring ^Insights

12.f DCF ^BETA