Euroapi S.A. (EAPI.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Euroapi SA develops, manufactures, markets, and distributes active pharmaceutical ingredients and intermediates used in the formulation of medicines for human and veterinary use.The company was incorporated in 2021 and is based in Paris, France.

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1.b. Last Insights on EAPI

Euroapi S.A.'s recent performance was negatively driven by a 10.0% decline in net sales to €911.9 million, primarily due to lower volumes for Sanofi and the suspension of production at Brindisi. Core EBITDA margin decreased 370bps year-over-year to 5.5%, mainly due to unfavorable fixed cost impact. The company's full-year 2024 results were affected by a challenging environment, resulting in a net loss of €43.6 million and a decline in free cash flow."

1.c. Company Highlights

Last Price	3.03
Change Percentage	0.20%
Open	3.02
Previous Close	3.03
Market Cap ( Millions)	289
Volume	38089
Year High	4.46
Year Low	2.26
M A 50	3.17
M A 200	2.97

FCF Yield	-7.34%
Dividend Yield	0.00%
ROE	-12.83%
Debt / Equity	7.17%
Net Debt / EBIDTA	-120.71%
Price To Book	0.3
Price Earnings Ratio	-2.31
Price To FCF	-13.63
Price To sales	0.33
EV / EBITDA	-21.84

2. Transcript Summary

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3. NewsRoom

With Med4Cure, EUROAPI accelerates pharmaceutical innovation at the service of health sovereignty

Oct -23

Source:

Change in Board’s Composition

Sep -30

Source:

Science Based Targets initiative (SBTi) validates EUROAPI’s near-term climate targets

Sep -18

Source:

Availability of 2025 Half-Year Financial Report

Jul -31

Source:

First-half 2025 results

Jul -29

Source:

EUROAPI sells Haverhill site to Particle Dynamics as part of its FOCUS-27 transformation plan

Jun -30

Source:

Frédéric Robert appointed EUROAPI’s Chief Commercial Officer overseeing API Solutions and CDMO activities

Jun -04

Source:

Combined General Meeting of May 21, 2025

May -21

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.75%)

6. Segments

Complex Chemical Synthesis Molecules

Expected Growth: 5%

Euroapi S.A.'s Complex Chemical Synthesis Molecules segment growth is driven by increasing demand for specialty APIs, strategic partnerships, and expansion into high-growth markets. Additionally, investments in R&D and manufacturing capabilities, as well as a strong pipeline of new products, contribute to the 5% growth rate.

Biochemistry Molecules Derived from Fermentation

Expected Growth: 3%

Euroapi S.A.'s 3% growth in biochemistry molecules derived from fermentation is driven by increasing demand for sustainable and eco-friendly products, advancements in fermentation technology, and growing adoption in pharmaceutical and cosmetic industries. Additionally, rising consumer awareness of natural ingredients and regulatory support for biotechnology innovations contribute to the segment's growth.

Highly Potent Molecules

Expected Growth: 7%

Euroapi S.A.'s Highly Potent Molecules segment growth is driven by increasing demand for complex APIs, strategic partnerships, and investments in R&D. The company's expertise in HPAPIs, coupled with a strong pipeline of products and growing outsourcing trends in the pharmaceutical industry, contribute to its high growth rate of 7.

Large Molecules

Expected Growth: 4%

Euroapi S.A.'s Large Molecules segment growth is driven by increasing demand for complex generics, patent expirations, and strategic partnerships. Additionally, the company's expertise in peptide synthesis and investments in capacity expansion support growth. Furthermore, the rising need for cost-effective treatments and growing access to healthcare in emerging markets also contribute to the segment's growth.

7. Detailed Products

API Hub

A platform that enables the integration of multiple APIs into a single, unified API, allowing for easier management and maintenance.

API Gateway

A security layer that protects APIs from unauthorized access, attacks, and data breaches, ensuring secure data exchange.

Microgateway

A lightweight, decentralized API gateway that enables secure, scalable, and flexible API management at the edge.

Service Mesh

A configurable infrastructure layer for microservices applications that enables service discovery, traffic management, and security.

API Analytics

A platform that provides real-time insights and analytics on API performance, usage, and security, enabling data-driven decision making.

API Security

A suite of security features that protect APIs from threats, such as API keys, OAuth, and JWT, and ensure compliance with security regulations.

8. Euroapi S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Euroapi S.A. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Euroapi S.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are highly specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Euroapi S.A. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate contracts mitigate this risk.

Threat Of New Entrants

The barriers to entry in Euroapi S.A.'s industry are relatively high, including significant capital requirements and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The industry in which Euroapi S.A. operates is highly competitive, with several established players competing for market share. This intense rivalry drives innovation and pricing pressure.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	19.55%
Debt Cost	4.86%
Equity Weight	80.45%
Equity Cost	4.86%
WACC	4.86%
Leverage	24.31%

11. Quality Control: Euroapi S.A. passed 3 out of 9 key points

Strong Liquidity

Low Debt

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

Medartis

A-Score: 3.9/10

Value: 3.0

Growth: 5.0

Quality: 4.5

Yield: 0.0

Momentum: 8.5

Volatility: 2.3

1-Year Total Return ->

IceCure Medical

A-Score: 3.6/10

Value: 6.0

Growth: 2.8

Quality: 3.4

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

Euroapi

A-Score: 3.6/10

Value: 9.8

Growth: 3.3

Quality: 2.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

Stratec

A-Score: 3.0/10

Value: 5.4

Growth: 3.4

Quality: 4.4

Yield: 3.1

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

Nano-X Imaging

A-Score: 2.8/10

Value: 7.2

Growth: 4.7

Quality: 3.6

Yield: 0.0

Momentum: 1.0

Volatility: 0.3

1-Year Total Return ->

Bactiguard Holding

A-Score: 2.0/10

Value: 4.0

Growth: 4.8

Quality: 3.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

35.87%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.86%

Euroapi S.A. - FR0014008VX5

1. Company Snapshot

1.a. Company Description

Euroapi SA develops, manufactures, markets, and distributes active pharmaceutical ingredients and intermediates used in the formulation of medicines for human and veterinary use.The company was incorporated in 2021 and is based in Paris, France.

1.b. Last Insights on EAPI

1.c. Company Highlights

Cheaper

Lower Growth

Lower Quality

Weak Momentum

More Volatile

Medium Volatility

Strong Momentum

Stable Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.75%)

6. Segments

Complex Chemical Synthesis Molecules

Expected Growth: 5%

Biochemistry Molecules Derived from Fermentation

Expected Growth: 3%

Highly Potent Molecules

Expected Growth: 7%

Large Molecules

Expected Growth: 4%

7. Detailed Products

API Hub

API Gateway

Microgateway

Service Mesh

API Analytics

API Security

8. Euroapi 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: Euroapi S.A. passed 3 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

3.03$

Current Price

3.03$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA