Seche Environnement (SCHP) AI Stock Analysis

• Market Cap: €577.23M
• Dividend Yield: 1.69%
• Average Volume (3M): 5.25K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.67
• Revenue Growth: 14.77%
• EPS Growth: 33.13%
• Country: FR
• Employees: 7,238
• Sector: Services
• Sector Strength: N/A
• Industry: Waste Management
• EPS (TTM): 0.72
• Shares Outstanding: 7,857,732
• 10 Day Avg. Volume: 5,825
• 30 Day Avg. Volume: 5,249
• PEG Ratio: -0.67
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 6.88
• 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): 5.19
• Revenue Forecast (FY): €1.35B

• Rating: 53 Neutral
• Price Target: €74.00 ▼(-1.99% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held back primarily by weaker recent financial performance (reported revenue drop, margin/ROE pressure) and still-elevated leverage despite steady cash generation. Technicals are moderately supportive with price above key shorter-term averages and RSI in constructive territory, while valuation is only fair given a ~26.5 P/E and modest dividend. Earnings-call guidance and H1 performance add support, but energy-price headwinds and regional execution risks temper the outlook.

Positive Factors

Specialized hazardous-waste services

A focus on hazardous and complex industrial wastes creates high regulatory and technical barriers to entry, supporting stable, contract-driven revenue and pricing power. This specialization favors long-term customer stickiness and higher unit economics versus commoditized municipal waste.

Consistent cash generation

Steady operating cash flow and positive free cash flow provide enduring support for capital spending, maintenance of treatment sites, and gradual debt reduction. Reliable cash generation underpins operational resilience and funds strategic investments without relying solely on external financing.

Successful acquisition integration

The ECO acquisition both grew revenue and materially boosted international margins, demonstrating the group's ability to integrate bolt-ons. Repeatable M&A competence can expand specialized capabilities, scale treatment capacity, and improve long-term portfolio profitability.

Negative Factors

Elevated leverage

Debt remaining above equity raises financial risk and constrains strategic flexibility. High leverage increases interest exposure and limits the pace of capex or acquisitions unless cash generation meaningfully accelerates, prolonging vulnerability to cyclical shocks.

Sharp 2025 revenue and margin weakness

A severe year-over-year revenue drop and compressed net margins signal weakening earnings power and higher volatility in core operations. Persistently lower profitability would impair ROE and reduce internally available funds for reinvestment and deleveraging over the medium term.

Energy-price sensitivity and regional execution risk

Material EBITDA exposure to energy-price swings and delays in regional project ramp-ups create recurring margin volatility. Reliance on energy-influenced processes and uneven execution across markets increases the risk profile of long-term cash flow predictability.

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 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 Money

Seche Environnement primarily makes money by charging customers—industrial companies, public-sector entities, and other waste producers—for waste management services delivered under contracts and recurring service agreements. Key revenue streams typically include: (1) Treatment and recovery fees: income from processing waste at Seche-operated facilities (such as thermal treatment/incineration and other physico-chemical or specialized processes), where customers pay per ton or per service for compliant destruction, detoxification, or recovery (energy/materials recovery where applicable). (2) Storage/disposal fees: revenue from accepting waste at controlled disposal and storage sites, generally priced by waste type and tonnage, reflecting regulatory constraints and long-term site management obligations. (3) Collection, logistics, and on-site services: fees for transporting waste from customer sites, providing containers, handling, and potentially on-site waste services; these can be bundled with downstream treatment/disposal or billed separately. (4) Ancillary environmental services: where offered, additional revenue can come from related services tied to waste characterization, compliance, and tailored industrial solutions. Overall earnings are driven by volumes processed, the mix of hazardous versus non-hazardous waste (hazardous services typically command higher unit pricing due to complexity and regulation), capacity utilization of owned facilities, and the duration/structure of customer contracts. Specific significant partnerships contributing to earnings: null.

Seche Environnement Financial Statement Overview

Summary

Income statement trends are weak in the latest year with a sharp reported revenue contraction and margin compression, while leverage remains elevated (debt above equity) and ROE fell materially. Offsetting factors include steady operating cash flow and consistently positive free cash flow, plus a notably larger equity base in 2025 that modestly improves balance-sheet flexibility.

Income Statement

Revenue expanded steadily from 2021–2024, but 2025 shows a sharp contraction (reported -56.2% growth) and profitability softened, with net margin falling to ~1.7% from ~3.0% in 2024 and ~4.4% in 2023. Operating profitability also eased in 2025 (EBIT margin ~6.5% vs ~8.5% in 2023–2024), though EBITDA margin held up better (~17.5%). Overall, the trend indicates weaker earnings power and higher volatility recently.

Balance Sheet

Leverage remains elevated, with debt running above equity across the period (debt-to-equity ~1.9x in 2025 and ~2.3–2.8x in prior years), which increases financial risk. A positive offset is the sizable equity base growth in 2025 (equity rising to ~€666m from ~€364m in 2024), improving balance-sheet flexibility versus last year. Returns on equity declined meaningfully with earnings pressure (to ~3.2% in 2025 from ~9.8% in 2024).

Cash Flow

Cash generation is positive and fairly steady, with operating cash flow around €190–€200m in 2023–2025 and consistently positive free cash flow. However, free cash flow fell in 2025 (down ~29%), and free cash flow relative to net income is moderate (about 0.43x in 2025), suggesting cash conversion is not especially strong. Cash flow covers only a modest portion of total debt (operating cash flow to total debt ~0.27–0.40 across years), limiting deleveraging speed.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.26B	1.19B	1.09B	974.95M	791.32M
Gross Profit	172.75M	678.14M	631.16M	254.31M	202.34M
EBITDA	219.73M	183.28M	201.88M	190.09M	161.07M
Net Income	21.48M	35.50M	47.83M	44.61M	28.38M
Balance Sheet
Total Assets	2.61B	2.12B	1.59B	1.40B	1.22B
Cash, Cash Equivalents and Short-Term Investments	706.12M	170.47M	162.22M	126.17M	172.20M
Total Debt	1.25B	1.02B	798.62M	703.99M	647.09M
Total Liabilities	1.73B	1.53B	1.24B	1.09B	949.92M
Stockholders Equity	665.79M	363.75M	338.34M	310.10M	269.47M
Cash Flow
Free Cash Flow	82.75M	116.47M	95.49M	33.68M	37.41M
Operating Cash Flow	192.56M	201.20M	187.31M	133.54M	126.97M
Investing Cash Flow	-123.43M	-304.35M	-168.73M	-189.48M	-117.61M
Financing Cash Flow	470.90M	106.20M	18.76M	-5.20M	46.96M

Seche Environnement Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SCHP, the sentiment is Positive. The current price of 75.5 is above the 20-day moving average (MA) of 64.75, above the 50-day MA of 69.20, and below the 200-day MA of 80.70, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 66.61 is Neutral, neither overbought nor oversold. The STOCH value of 90.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SCHP.

Seche Environnement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBG	64 Neutral	€1.33B	6.86	11.12%	1.90%	-7.47%	63.02%
AURE	64 Neutral	€51.17M	-28.39	―	2.59%	-11.23%	43.27%
VIE	61 Neutral	€24.29B	9.74	15.69%	4.77%	-0.31%	1.28%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SCHP	53 Neutral	€577.23M	26.50	12.51%	1.69%	14.77%	33.13%
ALESA	48 Neutral	€7.31M	-0.96	-93.86%	―	―	―