Saint-Gobain Added to BofA Securities' Top Investment Ideas
The French construction materials group has been added to BofA Securities' 'Europe 1' list, according to a report published on Monday. This inclusion follows a period of significant underperformance of the stock.
Saint-Gobain is now included in BofA Securities' '25 Values for 2026', a selection of companies exposed to significant operational or market catalysts over the year, according to the bank’s statement. The financial institution has reduced its operating income estimates for 2026-2027 by about 2% to account for the headwinds facing the group. Despite these downward adjustments, BofA Securities still keeps the stock among its strongest convictions in Europe and reiterates its buy recommendation.
Underperformance Relative to Euro Stoxx 50
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According to BofA Securities’ note, the Saint-Gobain stock has underperformed the Euro Stoxx 50 index by more than 20% over the past six months. The bank attributes this trend to negative sentiment due to political uncertainties in France and fears of a slowdown in the American residential roofing market. These factors have impacted investors' perception of the group, despite its solid fundamentals.
Still One of the Sector's Undervalued Stocks
BofA Securities believes that Saint-Gobain remains one of the last undervalued stocks in the sector according to its valuation criteria, the note states. This perceived undervaluation justifies, according to the bank, keeping the stock among its top investment convictions for the year 2026, despite the downward revisions in earnings estimates and the unfavorable market context that has affected the group’s recent stock performance.
SectorImmobilier / construction · Industrie · Matériaux · Construction›Autres matériaux de construction
Context
Period
Period: 2025
Key reported figures
Revenue: 46 483 M€
Revenue growth: -0,2 %
EBITDA: 7 203 M€
EBITDA margin: 15,5 %
Net income: 2 883 M€
Free cash flow: 3 752 M€
Net debt: 10 356 M€
Dividend per share: 2,30 €
Guidance from the release
Je suis convaincu de la création de valeur que Lead & Grow apportera à nos clients comme à nos actionnaires.
Saint-Gobain a publié ses résultats annuels 2025 marqués par une progression du chiffre d'affaires en monnaies locales et une marge d'exploitation stable à 11,4% et EBITDA à 15,5%. Le groupe confirme sa trajectoire et ses objectifs pour le plan Grow & Impact et annonce le lancement du plan Lead & Grow pour 2026-2030, axé sur la croissance rentable et l'accélération de la chimie de la construction.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
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