| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 40.54 | 578 |
| Intrinsic value (DCF) | 2.15 | -64 |
| Graham-Dodd Method | 7.40 | 24 |
| Graham Formula | 0.88 | -85 |
Aurea SA is a leading French waste management and recycling company specializing in the recovery and processing of hazardous and non-hazardous materials. Headquartered in Paris, Aurea operates across multiple recycling verticals, including black motor oils, remolded tires, rigid PVC, plastics, aluminum, copper, zinc, lead, and cadmium. The company also provides specialized mercury waste decontamination services. With a strong commitment to sustainability and circular economy principles, Aurea plays a crucial role in Europe's industrial waste management sector. Listed on Euronext Paris, Aurea serves both domestic and international markets, leveraging advanced recycling technologies to minimize environmental impact while generating value from waste streams. The company's diversified operations position it as a key player in the European recycling industry, addressing growing regulatory and corporate demand for responsible waste disposal solutions.
Aurea presents a niche investment opportunity in the European waste management sector with its specialized recycling capabilities. The company's diversified operations across multiple waste streams provide revenue stability, while its focus on hazardous materials recycling offers higher margin potential. Financials show modest profitability (€1.06M net income in FY2024) but positive operating cash flow (€15.77M), suggesting operational viability. The low beta (0.64) indicates relative stability compared to broader markets. Key risks include exposure to commodity price fluctuations in recycled materials, regulatory changes in waste management policies, and high debt levels (€53.24M debt vs €30.84M cash). The lack of dividend payments may deter income-focused investors. Aurea's value proposition hinges on Europe's increasing emphasis on circular economy principles, positioning it for potential long-term growth as environmental regulations tighten.
Aurea competes in the specialized segment of industrial waste recycling, differentiating itself through multi-material expertise that spans from tire remolding to heavy metal recovery. The company's competitive advantage lies in its technical capabilities for processing complex waste streams like mercury and cadmium, which have higher barriers to entry. Unlike general waste management firms, Aurea's focus on material-specific recycling allows for deeper value extraction from waste. However, its smaller scale (€244.9M revenue) compared to multinational waste giants limits its bargaining power with suppliers and customers. The company benefits from France's stringent environmental regulations that create steady demand for its services, but this also makes it vulnerable to policy shifts. Aurea's vertical integration in certain materials (like copper alloys production) provides additional margin opportunities. The main challenge is competing against larger players with greater financial resources for technology investments and international expansion. Its positioning as a specialist rather than a full-service waste manager allows for niche dominance but may cap growth potential in broader waste management contracts.