Seche Environnement (SCHP) AI Stock Analysis

• Market Cap: €520.29M
• Dividend Yield: 1.8%
• Average Volume (3M): 7.31K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.68
• Revenue Growth: 14.77%
• EPS Growth: 33.13%
• Country: FR
• Employees: 7,238
• Sector: Services
• Sector Strength: N/A
• Industry: Waste Management
• EPS (TTM): 2.05
• Shares Outstanding: 7,857,732
• 10 Day Avg. Volume: 8,751
• 30 Day Avg. Volume: 7,306
• PEG Ratio: -0.67
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 5.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.03
• Revenue Forecast (FY): €1.09B

• Rating: 62 Neutral
• Price Target: €73.00 ▼(-3.31% Downside)

Seche Environnement's overall stock score reflects strong financial performance and effective cash flow management. However, technical indicators suggest bearish momentum, and challenges highlighted in the earnings call, such as declining energy prices and regional underperformance, weigh on the score. The valuation is reasonable, but the company must address profitability and leverage concerns to improve its outlook.

Seche Environnement Business Overview & Revenue Model

Company Description

Seche Environnement (SCHP) is a leading player in the environmental services sector, specializing in waste management, recycling, and treatment solutions. The company operates across various segments, including hazardous and non-hazardous waste disposal, industrial cleaning, and environmental consulting. SCHP is committed to sustainability and innovation, providing comprehensive services that enable businesses to meet regulatory compliance and environmental standards while minimizing their ecological footprint.

How the Company Makes Money

Seche Environnement generates revenue primarily through its waste management and treatment services, which include the collection, processing, and disposal of various waste types. Key revenue streams come from contracts with industrial clients for the management of hazardous waste, as well as municipal contracts for residential and commercial waste collection. The company also earns income through recycling services and the sale of recovered materials. Additionally, strategic partnerships with local governments and industries enhance its service offerings and expand its customer base, contributing significantly to its earnings.

Seche Environnement Financial Statement Overview

Summary

Seche Environnement has shown solid revenue growth and effective cash flow management, which are key strengths. However, increased leverage and declining net profit margins highlight areas for improvement in profitability and financial stability.

Income Statement

Seche Environnement has demonstrated consistent revenue growth over the years, with a notable increase in total revenue from €673.86M in 2020 to €1.19B in 2024, indicating a strong growth trajectory. The Gross Profit Margin remains stable, showcasing effective cost management. However, the Net Profit Margin has decreased from 4.55% in 2023 to 2.98% in 2024, suggesting potential profitability challenges, possibly due to increased operating expenses or other costs impacting net income.

Balance Sheet

The company's Debt-to-Equity Ratio has increased over time, with Total Debt rising to €1.02B in 2024, which may indicate growing leverage and potential risk if interest rates rise or cash flows become constrained. The Return on Equity (ROE) is moderate, reflecting adequate efficiency in utilizing equity for generating profits. Although the Equity Ratio remains relatively stable, indicating a balanced asset financing structure, high leverage could pose a risk if not managed carefully.

Cash Flow

Seche Environnement shows positive Free Cash Flow growth, with Free Cash Flow increasing from €33.68M in 2022 to €116.47M in 2024, which supports potential reinvestment and debt servicing capabilities. The Operating Cash Flow has consistently exceeded Net Income, indicating strong operational cash generation ability. The Free Cash Flow to Net Income Ratio is positive, suggesting effective cash management despite fluctuations in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26B	1.19B	1.09B	974.95M	791.32M	673.86M
Gross Profit	724.53M	678.14M	631.16M	254.31M	202.34M	158.06M
EBITDA	209.14M	183.28M	201.88M	190.09M	161.07M	131.41M
Net Income	43.47M	35.50M	47.83M	44.61M	28.38M	13.81M
Balance Sheet
Total Assets	2.24B	2.12B	1.59B	1.40B	1.22B	1.09B
Cash, Cash Equivalents and Short-Term Investments	333.88M	170.47M	162.22M	126.17M	172.20M	105.27M
Total Debt	1.15B	1.02B	798.62M	703.99M	647.09M	555.54M
Total Liabilities	1.67B	1.53B	1.24B	1.09B	949.92M	837.32M
Stockholders Equity	358.41M	363.75M	338.34M	310.10M	269.47M	252.93M
Cash Flow
Free Cash Flow	117.29M	116.47M	95.49M	33.68M	37.41M	39.85M
Operating Cash Flow	206.47M	201.20M	187.31M	133.54M	126.97M	106.24M
Investing Cash Flow	-305.15M	-304.35M	-168.73M	-189.48M	-117.61M	-73.24M
Financing Cash Flow	291.84M	106.20M	18.76M	-5.20M	46.96M	-30.04M

Seche Environnement Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SCHP, the sentiment is Negative. The current price of 75.5 is above the 20-day moving average (MA) of 71.27, above the 50-day MA of 74.75, and below the 200-day MA of 86.28, indicating a bearish trend. The MACD of -2.70 indicates Positive momentum. The RSI at 33.08 is Neutral, neither overbought nor oversold. The STOCH value of 26.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SCHP.

Seche Environnement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIE	71 Outperform	€20.62B	18.97	15.69%	4.73%	-0.31%	1.28%
DBG	67 Neutral	€942.04M	8.83	10.31%	2.20%	1.10%	10.21%
AURE	64 Neutral	€54.71M	-34.18	―	2.57%	-11.23%	43.27%
SCHP	62 Neutral	€520.29M	11.91	12.51%	1.80%	14.77%	33.13%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Seche Environnement Corporate Events

Séché Environnement’s Earnings Call: Growth Amid Challenges

During the recent earnings call, Séché Environnement conveyed a mixed sentiment. The company celebrated robust revenue growth and the successful integration of recent acquisitions, yet faced challenges such as declining energy prices affecting margins and underperformance in certain regions, notably Spain.