Derichebourg (DBG) AI Stock Analysis

• Market Cap: €1.50B
• Dividend Yield: 1.9%
• Average Volume (3M): 175.00K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.24
• Revenue Growth: -7.47%
• EPS Growth: 63.02%
• Country: FR
• Employees: 42,908
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.37
• Shares Outstanding: 159,177,860
• 10 Day Avg. Volume: 255,723
• 30 Day Avg. Volume: 174,999
• PEG Ratio: 0.11
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 6.47
• 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: €8.60
• Price Target Upside: -8.70% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): €3.55B

• Rating: 64 Neutral
• Price Target: €10.00 ▲(6.16% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by mid-tier financial performance: improving leverage and positive free cash flow offset by revenue declines, thin margins, and only moderate cash conversion. Technicals add support via a strong uptrend and positive MACD, though the very high RSI signals elevated near-term pullback risk. Valuation is supportive with a modest P/E and small dividend yield.

Positive Factors

Improving leverage

Derichebourg's meaningful decline in debt-to-equity to ~0.76x and a rising equity base materially reduces financial risk and increases strategic flexibility. Over a multi-month horizon this supports capacity for targeted capex, selective M&A or weathering commodity-driven dips without immediate refinancing stress.

Positive free cash flow

Consistent positive free cash flow provides a durable internal funding source for working capital, debt servicing and reinvestment. Even with softened trends, steady FCF supports financial resilience, helps de-risk leverage reduction plans and preserves optionality for disciplined capital allocation.

Diversified, recurring business mix

A two-pronged model—environmental recycling plus contracted multiservices—balances cyclical commodity exposure with recurring, fee-based contracts. This structural diversification reduces single-cycle dependence, supports steadier revenue streams and creates cross-selling and scale advantages across municipal and industrial clients.

Negative Factors

Revenue contraction

Persistent top-line declines undermine the company's scale economics and make fixed-cost absorption harder over the medium term. If revenue contraction continues, it will pressure margins, slow deleveraging, and limit resources for strategic investments or contract retention initiatives.

Thin net margins

Low single-digit net margins leave limited buffer against commodity swings, input inflation or contract price pressure. Structurally thin profitability reduces internal reinvestment capacity and amplifies earnings volatility, making sustainable margin expansion essential for long-term capital returns.

Moderate cash conversion / working-capital variability

Cash conversion covering only ~56% of net income indicates earnings do not fully translate into discretionary cash, reflecting working-capital swings. Over months this constrains financing flexibility, hinders rapid deleveraging, and increases reliance on external funding during adverse cycles.

Derichebourg Business Overview & Revenue Model

Company Description

Derichebourg SA provides environmental services to businesses, and local and municipal authorities worldwide. The company's Environmental Services division engages in collection, sorting, recycling, and recovering of ferrous and non-ferrous metals from end-of-life consumer goods, including automobiles, electrical and electronic waste, etc.; recuperation materials, such as industrial demolitions; and new scrap from transformation processes, which include production waste. The division also offers waste collection and urban cleaning services; manages waste collection center and consumer; collects and treats wastewater; produces and distributes drinking water; and treats xenobiotics. Its Multiservices division provides outsourcing services for industrial and service sector companies, as well as for public services and local authorities. This division offers industrial cleaning and maintenance, and handling/logistics services; electrical and air conditioning engineering, and multi-technical maintenance; facility management services; remote surveillance; reception desk and corporate event planning, retail and event reception, and mail services; public and traffic lightings; urban billboards, and maintenance services for urban furnishings; green spaces, and roads and utility services; general and specialized temporary staffing services; temporary aeronautics and wind farm staffing services; aeronautics recruitment services; and training center services. Derichebourg SA was founded in 1956 and is headquartered in Paris, France.

How the Company Makes Money

Derichebourg generates revenue through multiple streams, primarily from its waste management and recycling operations. The company earns money by charging fees for waste collection and disposal services, as well as from the sale of recycled materials to manufacturing industries. Additionally, DBG provides multi-services that contribute to its revenue through contracts with businesses and public entities. Significant partnerships with municipalities and large corporations enhance its service capacity and customer base. The growing demand for sustainable waste solutions and recycling initiatives further drives revenue growth, as regulatory pressures and consumer awareness increase the necessity for environmentally responsible practices.

Derichebourg Financial Statement Overview

Summary

Mid-range fundamentals: leverage is improving (debt-to-equity down to ~0.76x) and free cash flow remains positive, but recent revenue contraction and thin net margins (~2–4%) limit operating strength. Cash conversion is only moderate (FCF ~56% of net income in 2024–2025).

Income Statement

Profitability is modest but generally resilient for the sector: EBIT margin has held around ~4.8–7.5% over the period, though it has stepped down from 2022 levels. Revenue momentum is a clear weak spot—after strong growth in 2021–2022, sales contracted in 2023 and declined again in 2025 (annual data). Net margin is thin (about ~2.1% in 2024 and ~3.7% in 2025), which leaves earnings more sensitive to pricing, volumes, and cost inflation.

Balance Sheet

Leverage appears manageable and improving: debt-to-equity has declined from elevated levels (above ~1.0x in 2021–2022) to ~0.76x in 2025, alongside a rising equity base. Returns on equity have moderated from very strong 2021–2022 levels to ~11% in 2025, but remain decent. Key risk remains that the business still carries meaningful absolute debt, which could constrain flexibility if the recent revenue weakness persists.

Cash Flow

Cash generation is positive, with free cash flow remaining solidly positive each year, but the trend has softened recently (free cash flow down ~15% in 2025 after growth in 2024). Free cash flow covers only about ~56% of net income in both 2024 and 2025, suggesting earnings are not fully translating into discretionary cash at a high rate. Operating cash flow relative to revenue is also moderate, indicating working-capital or cash-conversion variability.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	3.34B	3.61B	3.62B	4.35B	3.62B
Gross Profit	183.80M	863.80M	211.30M	361.00M	306.80M
EBITDA	320.50M	266.20M	402.20M	457.90M	388.20M
Net Income	122.00M	74.80M	136.90M	237.60M	174.00M
Balance Sheet
Total Assets	2.57B	2.56B	2.59B	2.88B	2.46B
Cash, Cash Equivalents and Short-Term Investments	163.50M	192.20M	162.60M	326.20M	787.60M
Total Debt	846.10M	905.90M	933.70M	976.60M	983.30M
Total Liabilities	1.44B	1.53B	1.59B	1.96B	1.76B
Stockholders Equity	1.12B	1.03B	990.40M	918.80M	703.10M
Cash Flow
Free Cash Flow	129.40M	181.80M	69.90M	260.10M	243.40M
Operating Cash Flow	230.90M	328.30M	234.30M	389.90M	311.90M
Investing Cash Flow	-91.60M	-98.20M	-191.20M	-657.90M	-76.20M
Financing Cash Flow	-166.60M	-191.80M	-204.60M	-218.70M	189.50M

Derichebourg Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:DBG, the sentiment is Positive. The current price of 9.42 is above the 20-day moving average (MA) of 8.64, above the 50-day MA of 7.72, and above the 200-day MA of 6.27, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 82.90 is Negative, neither overbought nor oversold. The STOCH value of 81.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:DBG.

Derichebourg Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIE	71 Outperform	€26.29B	21.92	15.69%	4.77%	-0.31%	1.28%
DBG	64 Neutral	€1.50B	12.25	11.34%	1.90%	-7.47%	63.02%
AURE	64 Neutral	€52.41M	-32.74	―	2.59%	-11.23%	43.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SCHP	63 Neutral	€524.19M	12.00	12.51%	1.69%	14.77%	33.13%