| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 1.03 | -100 |
| Graham Formula | n/a |
Augean plc (AUG.L) is a leading UK-based waste management company specializing in hazardous and non-hazardous waste treatment, disposal, and recycling services. Operating through two key segments—Treatment & Disposal and Augean North Sea Services—the company serves high-compliance industries such as oil and gas, nuclear decommissioning, construction, and infrastructure. Augean's expertise in waste remediation, landfill operations, and specialized services like radioactive waste management positions it as a critical player in the UK's environmental services sector. The company's HiPod container solution enhances efficiency in handling contaminated materials, reinforcing its competitive edge. With a strong focus on sustainability and regulatory compliance, Augean plays a vital role in the circular economy, helping industries minimize environmental impact while adhering to stringent waste disposal regulations. Headquartered in Wetherby, Augean has built a reputation for reliability and innovation in waste management since its founding in 2004.
Augean plc presents a compelling investment case due to its niche focus on hazardous waste management, a sector with high barriers to entry and steady demand driven by regulatory requirements. The company's FY 2020 financials show solid revenue growth (£91.66M) and net income (£13.26M), supported by strong operating cash flow (£28.08M). Its low beta (0.70) suggests relative stability compared to broader market volatility. However, risks include exposure to cyclical industries like oil and gas (via its North Sea Services segment) and potential regulatory changes impacting waste disposal practices. The dividend yield (2.75p per share) adds income appeal, but investors should monitor debt levels (£16.65M) and capital expenditures (£7.15M) for sustainability.
Augean plc competes in the UK waste management market by leveraging its specialized expertise in hazardous waste and industrial services, differentiating itself from broader waste handlers. Its Treatment & Disposal segment benefits from long-term contracts and regulatory moats, while the North Sea Services division capitalizes on offshore oil and gas waste streams—a niche with limited competition. The company's competitive advantages include advanced facilities like the East Northants Resource Management Facility (ENRMF), one of the UK's few hazardous waste landfills, and its HiPod system for efficient waste transport. However, Augean faces pressure from larger diversified players like Veolia and Suez, which have greater scale and resources. Its focus on high-margin hazardous waste mitigates pricing wars seen in general waste collection but exposes it to sector-specific downturns (e.g., oil and gas slowdowns). Strategic positioning near key industrial clusters (e.g., North Sea operations) enhances logistics efficiency, but reliance on UK-centric operations limits geographic diversification.