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Seche Environnement SA (FR:SCHP)
:SCHP
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Seche Environnement
(SCHP)
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Rating:63Neutral
Price Target:
€68.00
▼(-9.93% Downside)
The score is driven primarily by solid financial fundamentals (growth and improving free cash flow) and supportive guidance/cash generation from the latest earnings call. This is offset by weak technicals (price below major moving averages) and profitability/leverage concerns noted in the financial statements.
Positive Factors
Multi-year Revenue Growth
Sustained revenue expansion demonstrates durable demand across municipal, industrial and commercial waste services. Long-term contracts and diversified service lines reduce cyclicality, support scale economics, and provide a stable base for reinvestment and margin recovery over the next 2–6 months.
Improving Free Cash Flow
Material FCF improvement signals stronger underlying cash conversion and operational resilience. Elevated free cash allows funding of capex and M&A, accelerates debt reduction or investment in margin-improving projects, enhancing financial flexibility and reducing refinancing risk over the medium term.
Successful Acquisition Integration (ECO)
Proven M&A execution that raised margins in international operations indicates effective integration capability and strategic acumen. This track record supports value-accretive consolidation in hazardous waste, improving long-term mix and cash returns while enabling targeted scale benefits across geographies.
Negative Factors
Rising Leverage
Elevated and rising debt increases interest and refinancing vulnerability. Even with stable equity ratios, higher leverage constrains financial flexibility for capex or further acquisitions, and heightens risk if cash flows soften or interest rates rise, making balance-sheet management critical next 2–6 months.
Declining Net Profit Margin
A material fall in net margin signals pressure from rising operating costs or one-off charges, reducing retained earnings and capacity to deleverage. Persistently lower margins would limit reinvestment and make earnings more sensitive to volume or price swings across core services.
Energy Price Exposure
Earnings are meaningfully exposed to energy-price movements, which directly compress EBITDA in treatment and incineration activities. This structural commodity sensitivity increases earnings volatility and complicates margin forecasting, potentially offsetting operational gains unless hedging or cost offsets are implemented.
Seche Environnement (SCHP) vs. iShares MSCI France ETF (EWQ)
Market Cap
€453.99M
Dividend Yield1.69%
Average Volume (3M)5.25K
Price to Earnings (P/E)10.7
Beta (1Y)0.73
Revenue Growth14.77%
EPS Growth33.13%
CountryFR
Employees7,238
SectorServices
Sector StrengthN/A
IndustryWaste Management
Share Statistics
EPS (TTM)2.05
Shares Outstanding7,857,732
10 Day Avg. Volume5,825
30 Day Avg. Volume5,249
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)1.66
Price to Sales (P/S)0.51
P/FCF Ratio5.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.95
Revenue Forecast (FY)€1.06B
Seche Environnement Business Overview & Revenue Model
Company DescriptionSeche Environnement (SCHP) is a leading player in the environmental services sector, specializing in waste management, recycling, and treatment of hazardous materials. The company operates across multiple sectors, including industrial, municipal, and commercial waste management, offering innovative solutions to enhance sustainability and reduce environmental impact. SCHP's core products and services encompass waste collection, sorting, recycling, and the treatment of hazardous waste, ensuring compliance with environmental regulations while promoting circular economy principles.
How the Company Makes MoneySeche Environnement generates revenue primarily through its waste management and treatment services. Key revenue streams include fees for waste collection and disposal, recycling services, and specialized treatment of hazardous materials. The company also benefits from long-term contracts with municipalities and industrial clients, providing a stable income base. Additionally, SCHP may engage in partnerships with local governments and industries, which enhance its service offerings and expand its market reach. Revenue is further supported by its commitment to sustainability, allowing it to participate in various environmental programs and initiatives that may offer financial incentives or grants.
Seche Environnement Earnings Call Summary
Earnings Call Date:Sep 10, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 09, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong growth in revenue and successful integration of acquisitions, but was tempered by challenges such as declining energy prices impacting margins and underperformance in certain regions such as Spain.Q2-2025 Updates
Positive Updates
Dynamic Growth in H1 2025
Séché Environnement reported a dynamic growth with a 14.8% increase in contributed revenue to EUR 580.1 million, with organic growth at 7.5%.
Successful Integration of ECO
The ECO acquisition was successfully integrated, contributing EUR 37.1 million to revenue and significantly boosting international margin with a 43% EBITDA margin.
Strong Performance in France
France saw a 7% organic growth, demonstrating resilience despite challenges, and an improvement in operating margin from 7.2% to 9.2%.
Strong Cash Flow Generation
Operating free cash flow was EUR 63.2 million with a conversion rate of 53%, leading to a reduction in net financial debt to EUR 813.7 million.
Negative Updates
Impact of Declining Energy Prices
Energy prices dropped sharply, negatively impacting EBITDA by approximately EUR 15 million, with a projected reduction in expected EBITDA margins.
Underperformance in Spain
The Spanish market experienced a decline due to reduced volumes in purification and regeneration activities, negatively affecting margins.
Delayed Ramp-up of Carbon Soot Incinerator
The ramp-up of the carbon soot incinerator, expected to start in H1, was delayed to H2, impacting ECO's revenue growth.
Company Guidance
During the Séché Environnement call, guidance for H2 2025 and beyond was outlined amidst a backdrop of dynamic growth and several challenges. The group reported H1 2025 revenue of EUR 580.1 million, marking a 7.5% organic growth, with an EBITDA of EUR 118.2 million, representing a margin increase to 20.4% from 17.5% last year. Despite strong cash generation and achieving a leverage target below 3x EBITDA, the company anticipates a limited increase in EBITDA margins, partly due to declining energy prices, which are expected to impact earnings by EUR 15 million in H2. The planned acquisition of Groupe Flamme is a key strategic focus, pending regulatory approval, and is expected to enhance the company's market share in hazardous waste management in France. The outlook for 2025 maintains a revenue target of EUR 1.280 billion, with an anticipated EBITDA range of EUR 250 million to EUR 260 million. While international segments showed mixed results, the group expects improved performance in H2, particularly in Latin America and Southern Africa.Seche Environnement Financial Statement Overview
Summary
Strong multi-year revenue growth and materially improving free cash flow support the score. Offsetting factors include rising leverage and a notable decline in 2024 net profit margin, which adds profitability and balance-sheet risk.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.70
Positive
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.65
Positive
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.75
Positive
| 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
Negative
75.50
Price Trends
72.17
Negative
71.77
Negative
84.07
Negative
Market Momentum
-2.82
Positive
20.73
Positive
1.43
Positive
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 73.99, above the 50-day MA of 72.17, and below the 200-day MA of 84.07, indicating a bearish trend. The MACD of -2.82 indicates Positive momentum. The RSI at 20.73 is Positive, neither overbought nor oversold. The STOCH value of 1.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SCHP.
Seche Environnement Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | €23.46B | 21.11 | 15.69% | 4.77% | -0.31% | 1.28% | |
67 Neutral | €1.29B | 10.38 | 11.34% | 1.90% | -7.47% | 63.02% | |
64 Neutral | €51.88M | -32.41 | ― | 2.59% | -11.23% | 43.27% | |
63 Neutral | €453.99M | 10.72 | 12.51% | 1.69% | 14.77% | 33.13% | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% | |
48 Neutral | €4.31M | -1.40 | -71.22% | ― | ― | ― |
* Services Sector Average
FR:SCHP
Seche Environnement
56.80
-27.52
-32.64%
FR:DBG
Derichebourg
8.26
3.06
58.84%
FR:VIE
Veolia Environnement
31.85
5.31
20.01%
FR:ALESA
Ecoslops SA
0.78
0.06
8.33%
FR:AURE
Aurea SA
5.90
0.69
13.24%
FR:GPE
Groupe Pizzorno Environnement SA
61.40
-9.63
-13.56%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.