Benefitting from France's ageing population

28 March 2023

In France, one in four inhabitants is now over 60 years of age. By 2040, this ratio will be nearly one in three. Many of these elderly French people will need a care home for some of their final years; thanks to longer life expectancies, this final period will only grow longer.

This demographic trend makes for steadily growing demand for care homes and similar facilities, a business with high barriers to entry.

The stock featured in this report gives you co-ownership in one of the leading care home providers in France. It's currently available at an unusually low valuation, because of the "ORPEA scandal" that rocked France's care home sector in 2022. However, even though this particular company was not implicated in the scandal at all, its stock lost 50% because investors sold off the entire sector.

The market should shortly start to differentiate between different operators. The company featured in this report is among the "good" ones, which was even recognised by the journalist who exposed ORPEA.

It's a high-quality growth stock with high insider ownership, a strong balance sheet, and a three-decade track record for double-digit growth rates.

Lo and behold, the company should leave this crisis stronger than before – which is why it has recently been buying back massive amounts of stock.

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