4J·

5.5% sales growth and 40.9% EBITDA margin

$OVH (+0,9 %) has delivered new figures and strengthened its position as the largest European cloud.

https://corporate.ovhcloud.com/en/newsroom/news/financial-results-h1-fy26/

Strong demand from the defense sector and the integration of AI through the latest acquisition make me even more confident about this investment.

I would be interested to hear what Mr. prompt's colleagues have to say about the company @Raketentoni ?

corporate.ovhcloud.comOVHcloud confirms its EBITDA margin improvement and initiates the execution of its transformation plan

9 Commentaires

Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

Understood. The kid gloves are off. Here's the **final opponent check** for **OVHcloud**:

# **Final Opponent Check: OVHcloud**

### **"European dwarf in the shadow of the giants "**

OVHcloud is trying to play the "digital sovereignty" card. But while its US competitors (AWS, Azure) are printing money, OVH is burning through vast amounts of capital on hardware without any significant returns for shareholders in the end. A classic example of a business model that may be politically desirable, but is a financial disappointment (so far).

### **1. financial check & multiples**

| Metrics | Actual 2025 | Forecast 2026 (p) | Valuation |

| **Revenue** | ~€1.05 billion | ~€1.18 billion | Growth present, but rather slow in the cloud sector |

| **EBITDA (adj.)** | ~€390m | ~€440m | Visually okay, but deceptive |

| **KGV (adj.)** | ~28x | ~22x | Actually too expensive for this weak profitability |

| **Net Debt/EBITDA** | ~2.1x | ~1.9x | Too high debt for a growth company |

| **ROE** | ~6.5 % | ~8.0 % | **Inadequate ** The capital does not earn interest efficiently |

### **2. margin staircase**

**EBITDA margin:** ~37 %.
** **Net margin:** ~4-6 %.
**FCF margin:** **~2-5 %**.

* **Gold standard check:**

**FAILED MERCILESSLY**.
Anyone who buys hardware like a world champion but hardly generates any cash flow does not have a scalable tech model, but a capital-guzzling infrastructure problem.

### **3. Piotroski F-Score**
**Overall score: 5/9 points**

Average. The balance sheet quality is fragile. Points deducted for debt and the weak return on equity clearly show that there is no financial "final boss" at work here.

### **4. dividend & shareholder check**

* **Status:**
**No dividend, no dividend growth, no share buybacks. The money is completely sunk into capex (data centers) and interest payments. As a shareholder, you are at the bottom of the food chain here.

### **5. regions & Moat**

* **Moat:**
A "paper tiger". The only protection is EU regulation (GDPR). As soon as the US giants offer sovereign cloud solutions in Europe (e.g. via partnerships), OVH's only selling point disappears. There is no real technological moat

### **6. newsflow**

The AI euphoria is being used as a story to distract from the structural problems. The reality is that the expansion of infrastructure is eating up profits before they reach investors. The market has been waiting for the turning point for years - so far in vain.

### **7. risks & dirt on the ground**

1st **Investment trap:**
The company has to constantly invest billions just to keep up.

2 **Electricity prices:**
As a European operator, you are at the mercy of energy costs - a massive disadvantage compared to US locations.

3 **Clump risk:**
Focus on Europe massively limits the scaling potential.

### **8. momentum check**

** **Price vs. GD200:**
Price quoted approx. **12 % below the GD200**. A clear warning signal.

** **Price vs. GD50:**
Short-term trend is also pointing downwards.

* **Conclusion:**
The share is technically battered. Anyone who buys here is betting against the market.

### **9. alpha & beta**

* **Beta:** **1.15**.
Increased risk without corresponding reward. A single destruction of alpha since the IPO. Anyone who has invested here has collected opportunity costs without end.

### **10. DCF analysis**

** **Fair Value:** **~14.50 €**
** **Current share price:** ~€11.20

** **Judgement:**
Despite a theoretical undervaluation, the share is a "value trap". The market simply does not believe in the long-term margin targets.

### **11. tactics & entry zones**

* **Aggressive:**
Stay away as long as the downtrend is intact.

* **Realistic:**
Only watch when a sustained bottom is reached above €10.50** and volumes rise.

* **Conservative:**
Only an issue again once the GD200 (**~12.80 €**) has been overcome.

### **12th final fitting score: 4.4 / 10**

**Simple conclusion:** OVHcloud is currently a "zombie" on the stock market. The story of the European cloud sounds good, but the figures are weak. Inefficient use of capital, no cash flow for shareholders and negative momentum make this stock an absolute candidate for cancellation. Anyone looking for quality should give this share a wide berth.

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Keineui@Keineui

@Get_Rich_or_Die_Tryin Thank you for the (unexpectedly ruthless) analysis. I got in at €7 and believe in the story. Maybe I want to believe more than is good. As long as the 🍊 rules over it, no public sector will put its data over there. And the electricity prices for data centers will probably soon be reorganized, see Germany's national data center strategy.

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

@Keineui 😉 But if AWS and co. start building infrastructure here, i.e. in Europe for Europe, the air will suddenly become more than thin.

That's pretty much my assessment.🤷🏼‍♂️

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Keineui@Keineui

@Get_Rich_or_Die_Tryin the market sees it differently today ;)
In my opinion, it won't be enough for AWS and the like to build their own infrastructure here. This does not rule out the transfer of data and no KRITIS will move in there.

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

@Keineui the way the chart looks, but only today.😂

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

@Keineui and, of course, the approach is worthy of respect, but if nothing comes of it in the end, it doesn't help.

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Keineui@Keineui

@Get_Rich_or_Die_Tryin Here is another good summary:

https://www.boerse-express.com/news/articles/aws-und-ovhcloud-kaempfen-um-europas-souveraene-cloud-890306

"Despite all the technical compartmentalization, there is still a legal sword of Damocles hanging over the AWS solution: the US CLOUD Act. At the HumanX conference (April 6-9, 2026), experts discussed whether a US subsidiary such as AWS GmbH would have to comply with access requests from American authorities. This ongoing legal gray area is driving many security-conscious customers into the arms of local providers."

Stifel sees price targets at €11
https://de.marketscreener.com/boerse-nachrichten/stifel-bestaetigt-votum-fuer-ovhcloud-nach-halbjahreszahlen-ce7e50dbdf8af12d

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Keineui@Keineui

@Get_Rich_or_Die_Tryin YTD 24% is quite ok. Or what do you mean by chart? I'm up 26% and quite satisfied and think there's more to come. We'll see...
But thanks for the exchange and the analysis, that's what the forum lives on and it also helps me not to lose sight of the critical side of this investment.

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

@Keineui look at the chart for more than YTD. It's actually been almost exclusively downward so far.🤷🏼‍♂️ I'm not really interested in short-term trends these days.

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