Quadient S.A. (QDT.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Quadient S.A. provides business solutions for customers through digital and physical channels in France and internationally.The company offers customer experience management, business process automation, mail-related solutions, and parcel locker solutions.It provides Quadient Inspire, a software solution that helps businesses design, manage, and send personalized, omnichannel communications in large volumes.

The company also offers Quadient Impress, a multichannel outbound document management platform; YayPay, account receivable process automation solutions; and Beanworks, accounts payable solution automating error-prone manual processes.In addition, it provides lines of software and hardware for preparing and sending mails in low and high volumes.Further, the company operates a pick-up, drop-off solution that offers businesses and people who need to manage their deliveries and returns.

Additionally, it distributes print finishing equipment, such as guillotines, binding machines, laminating machines, and paper folding machines; provides professional and maintenance services; shipping software solutions; and automated packaging solutions.It serves financial services, healthcare, higher education, insurance, public sectors/government, retail, service providers, shipping carriers, telecommunications, and utilities industries.The company was formerly known as Neopost S.A. and changed its name to Quadient S.A. in September 2019.

Quadient S.A. was founded in 1924 and is headquartered in Bagneux, France.

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1.b. Last Insights on QDT

Quadient's recent performance was negatively impacted by a 1.1% decline in Q1 2025 sales to €258 million, with organic growth down 2.5%. The company's Digital and Lockers segments showed strong performance, but this was offset by a low point in the renewal cycle of mail equipment installed base. Additionally, the company's EBIT evolution was positive, supported by all three Solutions. The acceleration of digital financial automation strategy in Europe with the acquisition of Package Concierge contributed to the company's growth.

1.c. Company Highlights

Last Price	14.86
Change Percentage	-1.85%
Open	15.12
Previous Close	15.14
Market Cap ( Millions)	501
Volume	33824
Year High	20.15
Year Low	12.44
M A 50	14.06
M A 200	15.7

FCF Yield	12.86%
Dividend Yield	4.71%
ROE	6.09%
Debt / Equity	99.46%
Net Debt / EBIDTA	465.12%
Price To Book	0.46
Price Earnings Ratio	7.7
Price To FCF	7.78
Price To sales	0.46
EV / EBITDA	7.8

2. Quadient's H1 2025 Results: Resilience Amidst Challenges

Quadient's revenue declined by 3% to €517 million in the first half of 2025, largely due to a 13.4% organic drop in non-current revenue. However, the company's Digital and Lockers segments showed strong performance, with double-digit growth in recurring revenue. The EBITDA margin for Lockers improved significantly, while Mail EBITDA margin rose by 0.8 points compared to H1 '24. Net income stood at €21 million, down from €24 million last year, and free cash flow was negative €8 million. Earnings per share (EPS) was not disclosed.

Publication Date: Oct -28

                                    📋 Highlights
                                    Digital & Lockers Growth::
                                                Double-digit organic growth in recurring revenue, with Digital ARR reaching €241 million and Lockers installed base hitting 26,600 units.
Lockers EBITDA Margin Recovery::
                                                Significant EBITDA improvement driven by recurring revenue and usage growth, though exact figures not specified.
Revenue Resilience::
                                                Revenue declined 3% to €517 million (vs. 13.4% in non-current revenue drop), aided by integration efficiencies and mix effects.
Mail Segment Decline Mitigated::
                                                17.5% revenue drop due to U.S. decertification end, but EBITDA margin improved 0.8 points to over 25% in 2025 guidance.
Financial Strengthening::
                                                Income before tax up 50% YoY, net debt reduced to €712 million, and leverage ratio down to 2.9 (including leasing), reflecting disciplined balance sheet management.

                                

Segment Performance

The Digital business delivered double-digit organic growth in subscription-related revenue, with annual recurring revenue (ARR) reaching €241 million. According to Geoffrey Godet, "Quadient earned the highest score in both AI vision and roadmap as well as AI maturity, recognizing the company as the most valuable pioneer in the CCM AI Maturity Matrix." The Lockers platform expanded its network and usage, with the installed base reaching 26,600 lockers globally. Mail Solutions declined by 17.5% due to the earlier-than-expected end of the U.S. decertification program.

Financials and Leverage

Income before tax improved by 50% compared to last year, driven by lower optimization expenses. Net debt decreased to €712 million, influenced by the USD weakening against the Euro. Leverage ratios improved to 2.9 including leasing and 1.6 excluding leasing. The company maintained a strong liquidity position with €123 million in cash and a €300 million joint credit facility extended to 2030.

Outlook and Valuation

Quadient expects revenue to increase in the second half of 2025, driven by sustained momentum in Digital and Lockers, as well as a rebound in U.S. Mail. The company updated its full-year 2025 guidance, expecting a low single-digit decline in organic revenue. With a P/E Ratio of 7.45 and an EV/EBITDA of 7.7, the stock appears to be reasonably valued. The Dividend Yield stands at 4.87%, providing a relatively stable return for investors.

Guidance and Future Prospects

The company suspended guidance for Lockers and Digital on the revenue side for the 2023-2026 period due to uncertainty about the U.S. Mail market. Analysts estimate next year's revenue growth at -1.2%. Quadient is confident about the second half of the year, expecting Digital EBITDA to grow despite a slight decline in EBITDA margin. The company's 2030 guidance and 2026 EBITDA margin targets for its three solutions remain unchanged.

3. NewsRoom

Quadient Enters Agreement to Acquire CDP Communications, Bolstering Number 1 Market Share Position for its Digital Platform

Dec -03

Source:

Quadient Q3 2025 sales: FY 2025 guidance confirmed as Digital and Lockers continue to deliver strong performance

Dec -02

Source:

Smart Parcel Locker Market Research Report 2025-2030: New Product Launches, Logistics Partnerships, Last-Mile Innovations, and Tariff Impacts

Nov -24

Source:

Quadient Teams Up with Swipe Out Hunger to Support Campus Food Pantries through Automated Locker Technology

Nov -20

Source:

GLS Italy strengthens its network of pick-up points in partnership with Quadient

Nov -12

Source:

Quadient Maintains Top 3 Position Among France’s Leading Horizontal Software Vendors in 2025 EY and Numeum Ranking

Nov -10

Source:

Quadient Redefines Mailroom Automation with Next-Generation Intelligent Mailing Systems

Nov -06

Source:

Latest News In E-Commerce - Quadient Expands Italian Parcel Locker Network in E-Commerce Push

Oct -30

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.90%)

6. Segments

Mail Related Solutions

Expected Growth: 1.8%

Quadient's Mail Related Solutions segment growth of 1.8% is driven by increasing demand for omnichannel communication, digital transformation in the postal industry, and growing need for efficient mail processing and sorting solutions. Additionally, the segment benefits from Quadient's strong market presence, innovative product offerings, and strategic partnerships.

Intelligent Communication Automation

Expected Growth: 2.2%

Quadient's Intelligent Communication Automation growth is driven by increasing demand for digital transformation, need for enhanced customer experience, and rising adoption of cloud-based solutions. Additionally, the growing importance of omnichannel communication, compliance with regulatory requirements, and cost savings from automation also contribute to the 2.2% growth.

Parcel Locker Solutions

Expected Growth: 1.9%

The 1.9% growth of Quadient S.A.'s Parcel Locker Solutions is driven by increasing e-commerce adoption, rising demand for convenient and secure parcel delivery, and growing need for efficient logistics management. Additionally, the solution's ability to reduce delivery costs, enhance customer experience, and provide real-time tracking capabilities also contribute to its growth.

7. Detailed Products

Mailroom

Automated mail processing and sorting solutions for high-volume mailers

Parcel Locker

Self-service parcel lockers for secure and convenient package delivery

Automated Packaging Solutions

Customizable and scalable packaging systems for e-commerce and logistics

Data Quality

Data validation and enrichment solutions for accurate customer data

Customer Communications Management

Omnichannel customer communication solutions for personalized engagement

Output Management

Centralized output management solutions for document processing and distribution

8. Quadient S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Quadient S.A. operates in a highly competitive market, and customers have various alternatives to choose from. However, the company's strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Quadient S.A. has a large customer base, but some of its customers are large enterprises with significant bargaining power. This gives them the ability to negotiate prices and terms, which can negatively impact the company's revenue.

Bargaining Power Of Suppliers

Quadient S.A. has a diversified supplier base, which reduces its dependence on any single supplier. Additionally, the company's strong financial position gives it the bargaining power to negotiate favorable terms with its suppliers.

Threat Of New Entrants

While there are barriers to entry in the industry, new entrants can still disrupt the market. Quadient S.A. needs to continue innovating and investing in research and development to stay ahead of potential new entrants.

Intensity Of Rivalry

The industry in which Quadient S.A. operates is highly competitive, with several established players competing for market share. The company needs to focus on differentiating itself through innovation and customer service to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	42.66%
Debt Cost	5.06%
Equity Weight	57.34%
Equity Cost	9.13%
WACC	7.39%
Leverage	74.41%

11. Quality Control: Quadient S.A. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

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

Mensch und Maschine Software

A-Score: 5.5/10

Value: 2.5

Growth: 7.0

Quality: 7.7

Yield: 6.2

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

Quadient

A-Score: 4.7/10

Value: 8.6

Growth: 3.3

Quality: 4.1

Yield: 5.6

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

Sapiens

A-Score: 4.5/10

Value: 1.3

Growth: 6.2

Quality: 7.6

Yield: 3.8

Momentum: 7.0

Volatility: 1.0

1-Year Total Return ->

Media and Games Invest

A-Score: 4.3/10

Value: 5.3

Growth: 8.2

Quality: 4.2

Yield: 0.0

Momentum: 7.5

Volatility: 0.7

1-Year Total Return ->

Admicom

A-Score: 4.1/10

Value: 0.2

Growth: 5.6

Quality: 8.0

Yield: 3.8

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

NCC Group

A-Score: 3.4/10

Value: 4.5

Growth: 2.0

Quality: 2.6

Yield: 4.4

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.74%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.39%

Quadient S.A. - FR0000120560

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on QDT

1.c. Company Highlights

Less Volatile

Cheaper

Higher Yield

Lower Growth

Medium Volatility

Average Growth

Revenues Beats

2. Quadient's H1 2025 Results: Resilience Amidst Challenges

Segment Performance

Financials and Leverage

Outlook and Valuation

Guidance and Future Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.90%)

6. Segments

Mail Related Solutions

Expected Growth: 1.8%

Intelligent Communication Automation

Expected Growth: 2.2%

Parcel Locker Solutions

Expected Growth: 1.9%

7. Detailed Products

Mailroom

Parcel Locker

Automated Packaging Solutions

Data Quality

Customer Communications Management

Output Management

8. Quadient S.A.'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: Quadient S.A. passed 2 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

14.86$

Current Price

14.86$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA