Derichebourg (DBG) AI Stock Analysis

• Market Cap: €921.32M
• Dividend Yield: 2.27%
• Average Volume (3M): 149.56K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.26
• Revenue Growth: 1.10%
• EPS Growth: 10.21%
• Country: FR
• Employees: 42,908
• Sector: Industrials
• Sector Strength: 90
• Industry: Waste Management
• EPS (TTM): 0.40
• Shares Outstanding: 159,397,490
• 10 Day Avg. Volume: 117,150
• 30 Day Avg. Volume: 149,559
• PEG Ratio: -0.54
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €6.50
• Price Target Upside: 13.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: €6.50 ▲(13.64%Upside)

Derichebourg's stock score is primarily driven by its attractive valuation and solid financial stability, despite challenges in profitability and mixed technical signals. The low P/E ratio and reasonable dividend yield provide a strong valuation basis, while financial performance shows a need for improved profitability. Technical analysis indicates a lack of strong short-term momentum, contributing to a moderate overall score.

Derichebourg Business Overview & Revenue Model

Company Description

Derichebourg (DBG) is a global leader in environmental services, with operations spanning multiple sectors including recycling, waste management, and industrial services. The company provides a range of solutions aimed at promoting sustainability and resource recovery. Its core services include the collection, sorting, and recycling of various materials, such as metals, plastics, and electronic waste, as well as offering facility management and maintenance services to diverse industries.

How the Company Makes Money

Derichebourg generates revenue through its comprehensive suite of environmental and industrial services. The company's primary revenue streams include fees charged for waste collection and processing, the sale of recycled materials, and contracts for facility management and maintenance services. Additionally, Derichebourg benefits from strategic partnerships with municipalities and corporations that rely on its expertise for efficient waste management and resource recovery solutions. The company's ability to leverage economies of scale and its extensive network of recycling facilities also contribute significantly to its financial performance.

Derichebourg Financial Statement Overview

Summary

Derichebourg's financial performance is mixed, with strong cash generation and reasonable leverage. However, declining revenue and net profit margins are concerning. Improvements in gross profit margin suggest better cost management, but profitability challenges remain.

Income Statement

Derichebourg's income statement shows a decline in revenue over the past year, with TTM (Trailing-Twelve-Months) revenue of €3.62 billion, down from €4.35 billion in 2022. The gross profit margin improved significantly to 32.5% from 5.8% in the previous year, indicating better cost management. However, the net profit margin decreased to 2.1% from 5.5%, highlighting challenges in maintaining profitability. The EBIT margin also declined to 4.9% from 7.5%. Overall, there are signs of operational efficiency, but profitability remains a concern.

Balance Sheet

The balance sheet of Derichebourg indicates financial stability with a debt-to-equity ratio of 0.88, showing manageable leverage. The equity ratio stands at 40.2%, reflecting a strong capital base relative to assets. The return on equity (ROE) decreased to 7.3% from a higher 24.4% in 2022, indicating reduced profitability for shareholders. Overall, the company maintains a stable financial position with reasonable leverage.

Cash Flow

Derichebourg's cash flow statement shows a strong operating cash flow to net income ratio of 4.39, suggesting robust cash generation relative to net earnings. Free cash flow grew significantly to €181.8 million, up from €69.9 million in 2023, indicating improved cash management. However, the free cash flow to net income ratio is lower at 2.43, which signals potential challenges in converting earnings to free cash. Overall, the cash flow position is strong, but there are areas for improvement in translating earnings into free cash flow.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.61B	3.62B	4.35B	3.62B	2.46B
Gross Profit	863.80M	211.30M	361.00M	306.80M	119.50M
EBITDA	260.50M	397.90M	457.90M	388.20M	172.20M
Net Income	74.80M	136.90M	237.60M	174.00M	21.30M
Balance Sheet
Total Assets	2.56B	2.59B	2.88B	2.46B	1.88B
Cash, Cash Equivalents and Short-Term Investments	192.20M	162.60M	326.20M	787.60M	361.90M
Total Debt	905.90M	933.70M	976.60M	983.30M	703.10M
Total Liabilities	1.53B	1.59B	1.96B	1.76B	1.35B
Stockholders Equity	1.03B	990.40M	918.80M	703.10M	521.60M
Cash Flow
Free Cash Flow	181.80M	69.90M	260.10M	243.40M	95.50M
Operating Cash Flow	328.30M	234.30M	389.90M	311.90M	165.60M
Investing Cash Flow	-98.20M	-191.20M	-657.90M	-76.20M	-220.70M
Financing Cash Flow	-191.80M	-204.60M	-198.50M	189.50M	132.80M

Derichebourg Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:DBG, the sentiment is Neutral. The current price of 5.72 is below the 20-day moving average (MA) of 5.76, below the 50-day MA of 5.89, and above the 200-day MA of 5.39, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 24.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:DBG.

Derichebourg Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIE	72 Outperform	€22.10B	19.85	13.14%	4.57%	-1.45%	14.74%
SCHP	70 Outperform	€801.89M	22.48	10.11%	1.17%	9.24%	-25.46%
DBG	69 Neutral	€921.32M	8.63	10.31%	2.27%	1.10%	10.21%
Sector *	65 Neutral	€9.39B	16.57	3.99%	3.36%	2.85%	-16.21%
AURE	64 Neutral	€51.70M	51.19		―	-0.37%	-76.92%

Derichebourg Corporate Events

Derichebourg Inaugurates Advanced Metal Recycling Facility in France

Derichebourg Environnement inaugurated a new high-performance metal recycling facility in Saint-Pierre-de-Chandieu, enhancing its capabilities in recycling end-of-life products and producing recycled raw materials for European steel mills. This 45 million euro investment aims to significantly reduce the carbon footprint of steel production and support the circular economy, aligning with the European Clean Industrial Deal’s objectives. The facility also features a recycling line for waste electrical and electronic equipment and a solid recovered fuel production line, contributing to industry decarbonization and energy independence.