| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 22.96 | 1142 |
| Graham Formula | n/a |
Recylex S.A. (RX.PA) is a leading French industrial materials company specializing in the recycling of lead, zinc, and plastics. Headquartered in Suresnes, France, the company operates in the basic materials sector, focusing on the collection and recycling of used lead-acid batteries to recover lead and plastic materials. Additionally, Recylex engages in zinc recycling and production, as well as polypropylene recycling and compounding. Founded in 1988, Recylex plays a critical role in Europe's circular economy by transforming waste into reusable materials, reducing environmental impact, and supporting sustainable industrial practices. With a market capitalization of approximately €47.8 million, Recylex serves industries requiring lead, zinc, and plastic components, positioning itself as a key player in the European recycling market. The company's operations align with stringent environmental regulations, reinforcing its commitment to eco-friendly resource recovery.
Recylex S.A. presents a niche investment opportunity in the European recycling sector, with a focus on lead and zinc recovery. The company reported a net income of €126.8 million in FY 2020, driven by strong recycling operations, though operating cash flow was negative at €-4.9 million, indicating potential liquidity constraints. With a dividend payout of €6 per share, Recylex offers income potential, but investors should be cautious of its high debt levels (€23.5 million) and limited cash reserves (€6.5 million). The company's beta of 0 suggests low correlation with broader market movements, which may appeal to risk-averse investors. However, reliance on commodity prices (lead, zinc) and regulatory risks in waste management could impact profitability. Recylex's competitive positioning in France provides stability, but expansion opportunities may be limited without further capital investment.
Recylex S.A. holds a competitive advantage in the French and European lead and zinc recycling markets due to its specialized operations and compliance with environmental standards. The company's vertically integrated model—from battery collection to material recovery—enhances efficiency and cost control. However, its small scale compared to global competitors limits pricing power and international reach. Recylex's focus on lead-acid battery recycling differentiates it from broader waste management firms, but it faces competition from larger metal recyclers with diversified operations. The company's financial performance in 2020 was strong (€126.8M net income), but negative operating cash flow raises concerns about sustainability. Its reliance on France for operations exposes it to regional regulatory and economic risks. While Recylex benefits from Europe's push toward a circular economy, it must invest in technology and capacity to compete with multinational players. The lack of significant R&D or expansion initiatives may hinder long-term growth.