| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 90.27 | 15 |
| Intrinsic value (DCF) | 210.83 | 169 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 78.25 | 0 |
Séché Environnement SA (SCHP.PA) is a leading French waste management company specializing in the recovery and treatment of industrial, corporate, and municipal waste. Founded in 1976 and headquartered in Paris, the company operates across France and internationally, offering a comprehensive suite of environmental services. These include hazardous and non-hazardous waste storage, thermal treatment, industrial site decontamination, and recycling solutions. Séché Environnement also provides energy recovery services, converting waste into electricity and steam using biogas and solid recovered fuels. With a strong focus on sustainability, the company plays a critical role in the circular economy by regenerating used products and mitigating environmental pollution. As part of the Industrials sector, Séché Environnement serves a diverse clientele, including local authorities and industrial firms, positioning itself as a key player in Europe's waste management industry. Its integrated approach—combining collection, treatment, and energy recovery—makes it a vital contributor to environmental preservation and resource efficiency.
Séché Environnement presents a stable investment opportunity within the waste management sector, supported by its diversified service portfolio and recurring revenue streams from industrial and municipal contracts. The company’s €1.19B revenue (FY 2024) and €35.5M net income reflect steady operational performance, though its high total debt (€1.02B) warrants caution. With a beta of 0.61, the stock exhibits lower volatility compared to the broader market, appealing to risk-averse investors. The dividend yield (~1.6% based on a €1.20/share payout) adds income appeal. However, capital expenditures (€84.7M) indicate ongoing investments in infrastructure, which could pressure short-term cash flows. Regulatory tailwinds in Europe favoring waste-to-energy and recycling initiatives may bolster growth, but competition and pricing pressures in the fragmented waste sector remain risks.
Séché Environnement’s competitive advantage lies in its integrated waste management solutions, combining collection, treatment, and energy recovery under one umbrella. This vertical integration allows cost efficiencies and long-term client retention, particularly in hazardous waste treatment, where regulatory barriers limit competition. The company’s focus on niche services like marine decontamination and polluted soil remediation further differentiates it. However, its regional concentration in France (~80% of revenue) exposes it to local economic and regulatory shifts, unlike global peers with diversified geographic footprints. While Séché’s €725M market cap positions it as a mid-tier player, it competes effectively with larger rivals through specialized expertise and partnerships with local authorities. Its R&D investments in circular economy technologies (e.g., solid recovered fuel) align with EU sustainability goals, but scalability remains a challenge compared to multinational waste giants. Pricing power is constrained by the capital-intensive nature of the industry and competition from low-cost operators in Eastern Europe.