| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 72.90 | -7 |
| Intrinsic value (DCF) | 191.13 | 144 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 68.80 | -12 |
Séché Environnement SA is a leading French waste management company specializing in the recovery and treatment of industrial and corporate waste, as well as services for local authorities. Founded in 1976 and headquartered in Paris, the company operates both domestically and internationally, offering a comprehensive suite of environmental services. These include hazardous and non-hazardous waste storage, thermal treatment, industrial site decontamination, and renewable energy production from biogas and recovered fuels. Séché Environnement plays a critical role in the circular economy by transforming waste into reusable resources, aligning with global sustainability trends. The company serves a diverse clientele, from industrial firms to municipalities, positioning itself as a key player in Europe's waste management sector. With a strong focus on innovation and regulatory compliance, Séché Environnement continues to expand its footprint in environmental solutions, reinforcing its reputation as a trusted partner in waste recovery and pollution control.
Séché Environnement SA presents a stable investment opportunity within the waste management sector, supported by consistent revenue streams and a diversified service portfolio. The company's focus on circular economy solutions aligns with increasing regulatory and societal demands for sustainable waste practices. However, investors should note the high total debt (€1.02 billion) relative to its market cap (~€726 million), which could pose financial risks in a rising interest rate environment. The company's beta of 0.612 suggests lower volatility compared to the broader market, appealing to risk-averse investors. With a dividend yield of approximately 1.65% (based on a €1.20 dividend per share), it offers modest income potential. Growth prospects are tied to expansion in international markets and advancements in waste-to-energy technologies, though competition and regulatory pressures remain key challenges.
Séché Environnement SA holds a strong position in the French and European waste management market, differentiating itself through integrated waste recovery and energy production capabilities. Its competitive advantage lies in its ability to provide end-to-end solutions, from collection to treatment and valorization, particularly in hazardous waste and industrial decontamination. The company's expertise in thermal treatment and biogas energy generation adds a high-value niche. However, it faces stiff competition from larger multinational waste management firms with greater financial resources and global reach. Séché's regional focus in France provides localized expertise but may limit scalability compared to pan-European competitors. Its moderate market cap (~€726 million) suggests it is a mid-tier player, requiring strategic partnerships or acquisitions to compete effectively with industry giants. The company’s innovation in circular economy solutions, such as solid recovered fuel processing, strengthens its positioning in sustainability-driven markets, but reliance on regulatory frameworks could impact long-term growth.