OVH Groupe S.A. (OVH.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

OVH Groupe SAS provides public and private cloud, shared hosting, and dedicated server products and solutions worldwide.The company offers Bare Metal Cloud, an instant provisioning and automated access to dedicated servers; Hosted Private Cloud, which are software defined data center services; Public Cloud that provides computing services on shared servers; and web cloud services to help individuals and companies to start and enhance their digital journey.It also offers domain name registration, telephony, and internet access services.

The company operates approximately 400,000 servers within 33 data centers.OVH Groupe SAS was founded in 1999 and is based in Roubaix, France.

Show Full description

1.b. Last Insights on OVH

OVH Groupe's recent performance was driven by a 10.2% revenue increase, fueled by robust public cloud demand and strategic refinancing initiatives. The company's strong financial performance is a testament to its ability to adapt to market shifts and capitalize on emerging trends. Additionally, OVH Groupe's high insider ownership, with key stakeholders holding significant stakes, indicates a vested interest in the company's success, providing a level of confidence for investors.

1.c. Company Highlights

Last Price	7.17
Change Percentage	-14.74%
Open	7.76
Previous Close	8.41
Market Cap ( Millions)	1079
Volume	758095
Year High	14.64
Year Low	7.1
M A 50	9.36
M A 200	10.6

FCF Yield	3.73%
Dividend Yield	0.00%
ROE	4.55%
Debt / Equity	2344.57%
Net Debt / EBIDTA	387.29%
Price To Book	26.28
Price Earnings Ratio	102.89
Price To FCF	26.79
Price To sales	1.03
EV / EBITDA	7.38

2. Transcript Summary

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3. NewsRoom

OVHcloud and LCH SA sign cloud agreement

Nov -24

Source:

OVHcloud Summit 2025: Innovative Solutions to Harness the Power of AI and Quantum Technologies

Nov -20

Source:

European Growth Companies With High Insider Ownership In November 2025

Nov -19

Source:

OVHcloud strengthens its European leadership with its first 3-AZ region in Germany

Nov -18

Source:

OVHcloud announces the implementation of the share buyback programme

Nov -18

Source:

Broadcom Advances Open Ecosystem for VMware Cloud Foundation

Nov -12

Source:

European Growth Stocks With Strong Insider Ownership

Oct -21

Source:

OVHcloud founder Klaba returns as CEO amid 1 billion euros revenue milestone

Oct -21

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.14%)

6. Segments

Private Cloud

Expected Growth: 10%

OVH's Private Cloud growth is driven by increasing demand for secure, customizable, and scalable infrastructure. Key drivers include: 1) rising adoption of hybrid and multi-cloud strategies, 2) growing need for data sovereignty and compliance, 3) expanding use of AI, IoT, and big data, and 4) OVH's strong European presence and competitive pricing.

Webcloud & Other

Expected Growth: 9%

OVH Groupe S.A.'s Webcloud & Other segment growth of 9% is driven by increasing adoption of cloud computing, rising demand for digital transformation, and growing need for data analytics and artificial intelligence. Additionally, the segment benefits from OVH's strong brand reputation, strategic partnerships, and continued investments in infrastructure and innovation.

Public Cloud

Expected Growth: 12%

OVH's public cloud growth is driven by increasing demand for scalable infrastructure, digital transformation, and cost savings. Strong adoption in Europe, particularly in France and Germany, contributes to growth. Additionally, OVH's competitive pricing, high-performance infrastructure, and strong security features attract customers. The company's strategic partnerships and expanding portfolio of cloud services, including AI and IoT offerings, further fuel growth.

7. Detailed Products

Dedicated Servers

High-performance servers for heavy workloads, customizable to meet specific business needs

Virtual Private Servers (VPS)

Virtual servers with dedicated resources, scalable and flexible for growing businesses

Public Cloud

Scalable and on-demand cloud infrastructure for flexible resource allocation

Private Cloud

Dedicated cloud infrastructure for high-security and high-availability environments

Web Hosting

Shared hosting solutions for small to medium-sized websites and applications

Domain Registration

Domain name registration and management services

SSL Certificates

Secure socket layer certificates for encrypting online transactions

Colocation

Secure and reliable data center space for housing IT infrastructure

IP Services

IP address management and allocation services

8. OVH Groupe S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

OVH Groupe S.A. operates in a highly competitive market, with many substitutes available to customers. However, the company's strong brand reputation and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

OVH Groupe S.A. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's customized solutions and high switching costs make it difficult for customers to switch to competitors.

Bargaining Power Of Suppliers

OVH Groupe S.A. relies on a few large suppliers for its infrastructure and equipment. While the company has some bargaining power due to its size, suppliers still have some leverage due to the specialized nature of their products.

Threat Of New Entrants

The cloud computing market is highly competitive, and new entrants can easily enter the market with innovative solutions. OVH Groupe S.A. needs to continuously innovate and invest in R&D to stay ahead of new entrants.

Intensity Of Rivalry

The cloud computing market is highly competitive, with many established players and new entrants vying for market share. OVH Groupe S.A. faces intense competition from global players like Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	65.60%
Debt Cost	3.95%
Equity Weight	34.40%
Equity Cost	10.94%
WACC	6.35%
Leverage	190.73%

11. Quality Control: OVH Groupe S.A. passed 0 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

WAGPS

A-Score: 4.3/10

Value: 4.5

Growth: 5.7

Quality: 2.0

Yield: 2.5

Momentum: 9.0

Volatility: 2.0

1-Year Total Return ->

Spirent Communications

A-Score: 4.1/10

Value: 0.8

Growth: 1.7

Quality: 5.1

Yield: 3.1

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

Arqit Quantum

A-Score: 4.0/10

Value: 6.0

Growth: 4.8

Quality: 3.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

Radware

A-Score: 3.6/10

Value: 1.2

Growth: 3.6

Quality: 6.1

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

OVH

A-Score: 3.5/10

Value: 2.8

Growth: 5.1

Quality: 2.7

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

Allot

A-Score: 3.4/10

Value: 2.6

Growth: 2.9

Quality: 4.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

11.99%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.35%

OVH Groupe S.A. - FR0014005HJ9

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OVH

1.c. Company Highlights

Lower Quality

Stable Momentum

Medium Volatility

Revenues Miss

More Volatile

Weak Momentum

Average Growth

Average Yield

Fairly Valued

Strong Momentum

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 (10.14%)

6. Segments

Private Cloud

Expected Growth: 10%

Webcloud & Other

Expected Growth: 9%

Public Cloud

Expected Growth: 12%

7. Detailed Products

Dedicated Servers

Virtual Private Servers (VPS)

Public Cloud

Private Cloud

Web Hosting

Domain Registration

SSL Certificates

Colocation

IP Services

8. OVH Groupe 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: OVH Groupe S.A. passed 0 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

7.17$

Current Price

7.17$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA