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Seche Environnement (SECVY)
OTHER OTC:SECVY
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Seche Environnement
(OTC:SECVY)
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Rating:70Outperform
Price Target:
$17.50
▼(-2.23% Downside)
Seche Environnement's overall stock score reflects strong financial performance and positive earnings call insights, tempered by bearish technical indicators. The company's robust cash flow and strategic focus on operational efficiency are significant strengths. However, the current market momentum and technical analysis suggest caution. The valuation is reasonable, providing a balanced investment outlook.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, enabling investment in growth opportunities and resilience against market fluctuations.
Successful Contract Wins
Securing long-term contracts ensures stable revenue streams and strengthens market position, contributing to sustainable growth.
Negative Factors
Low Net Profit Margin
A low net profit margin indicates potential inefficiencies, which could limit profitability and competitiveness over time.
Impact of Declining Energy Prices
Declining energy prices can reduce profitability in the waste-to-energy segment, affecting overall margin sustainability.
High Debt Levels
High debt levels may strain financial resources and limit strategic flexibility, posing risks in volatile market conditions.
Seche Environnement (SECVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$695.19M
Dividend Yield1.99%
Average Volume (3M)0.00
Price to Earnings (P/E)14.7
Beta (1Y)0.56
Revenue Growth15.40%
EPS Growth33.70%
CountryUS
Employees7,238
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)0.45
Shares Outstanding39,288,660
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)1.60
Price to Sales (P/S)0.49
P/FCF Ratio4.99
Enterprise Value/Market Cap2.15
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit2.07
Enterprise Value/Ebitda7.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Seche Environnement Business Overview & Revenue Model
Company DescriptionSéché Environnement SA engages in the recovery and treatment of waste products for industrial and corporate customers, and local authorities in France and internationally. The company provides industrial cleaning, site decontamination, marine decontamination, and polluted soil treatment services; storage services of hazardous and non-hazardous waste; thermal treatment services; and collection and pre-treatment services of recoverable waste, such as mechanical/ biological sorting, maturing, business waste, solid recovered fuel, and wood. It also offers decontamination, dismantling, and rehabilitation of industrial sites; electricity and steam supply based on biogas, solid recovered fuel, or wood; purification of synthesis intermediates; decontamination of metals; and treatment of gas, as well as covering the regeneration of used products. In addition, the company provides transport of waste; residues from the purification of incineration fumes from household, industrial waste, and ash; and environmental emergencies response services. Séché Environnement SA was incorporated in 1976 and is headquartered in Paris, France.
How the Company Makes MoneySeche Environnement generates revenue through several key streams. Primarily, the company earns income from the treatment and disposal of industrial and hazardous waste, charging clients based on the volume and type of waste processed. Additionally, SECVY provides recycling services that contribute to its revenue, as the company can sell recovered materials back into the market. The company also benefits from consulting services, providing expertise in waste management strategies to businesses and public entities. Strategic partnerships with industries, municipalities, and government bodies further enhance SECVY's market presence and revenue, as they secure long-term contracts for waste management services. Moreover, environmental regulations and the increasing emphasis on sustainability are driving demand for SECVY's services, contributing to its overall financial performance.
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 strong financial results with dynamic revenue growth and successful refinancing efforts, bolstered by significant contract wins and the integration of ECO. However, the company faced challenges with declining energy prices, chemical sector uncertainties, and delays in key projects which impacted the overall growth outlook.Q2-2025 Updates
Positive Updates
Dynamic Revenue Growth
The company reported a contributed revenue of EUR 580.1 million, up organically by over 7.5%, demonstrating dynamic growth in both France and internationally.
Strong Financial Performance
EBITDA increased to EUR 118.2 million with a margin improvement to 20.4% from 17.5% last year. Net income group share doubled over the same period versus last year.
Successful Refinancing and Strong Liquidity
The company secured a successful refinancing of the ECO acquisition and issued a new green bond for EUR 400 million, improving liquidity to EUR 550.6 million.
Successful Integration of ECO
ECO contributed EUR 37 million in revenue in H1 2025, with a significant EBITDA margin of 43%.
Major Contract Wins
The company won several significant contracts, including Valo’Loire, a public contract renewed for 20 years totaling EUR 180 million, and a construction contract worth EUR 300 million.
Negative Updates
Impact of Declining Energy Prices
The reduction in energy sale prices negatively impacted EBITDA by approximately EUR 15 million and is expected to continue affecting margins.
Challenges in the Chemical Sector
The chemical sector faced a wait-and-see attitude from clients, impacting solvent regeneration and purification activities.
Underperformance in Spain
The Spanish subsidiary, Solarca, underperformed due to delayed work sites in the chemical cleanup sector.
Delay in Carbon Soot Incinerator Ramp-Up
The ramp-up of the carbon soot incinerator was delayed, impacting ECO's expected revenue growth.
Company Guidance
During the Séché Environnement call, the company provided guidance for the remainder of 2025, highlighting several key metrics from their H1 performance. The group reported a contributed revenue of EUR 580.1 million, reflecting an organic growth of over 7.5%, and an EBITDA of EUR 118.2 million, with a margin increase to 20.4% from 17.5% the previous year. The net income group share doubled from the same period last year, and the operating cash flow reached EUR 63 million. The company successfully reduced its net financial debt to EUR 813.7 million, achieving a financial leverage of 2.9x EBITDA. Looking ahead, Séché Environnement confirmed its revenue target of EUR 1.280 billion for 2025 but anticipated a limited increase in EBITDA margins due to declining energy prices impacting the circular economy segment. Despite this, the company remains committed to maintaining a financial leverage below 3x, excluding acquisitions, and emphasized its continued focus on cash flow generation and solid financial structure.Seche Environnement Financial Statement Overview
Summary
Seche Environnement demonstrates strong financial health with consistent revenue growth and robust cash flow generation. The company maintains a high gross profit margin and solid EBITDA margin, but the low net profit margin and equity ratio highlight areas for improvement. Effective leverage management and strategic focus on operational efficiency are crucial for sustaining long-term growth.Income Statement
Seche Environnement has shown impressive revenue growth with a consistent upward trajectory over the years, reflected in a revenue growth rate of approximately 9.3% in the latest year. The company maintains strong profitability, evidenced by a high gross profit margin of 87.1% and a solid EBITDA margin of 17.7%. However, the net profit margin is relatively low at 3.0%, indicating room for improvement in operational efficiency.Balance Sheet
The company has a manageable debt-to-equity ratio of 2.79, suggesting a balanced approach to leveraging for growth. Return on equity is reasonable at 9.8%, which reflects efficient use of shareholder capital. However, the equity ratio is somewhat low at 17.2%, indicating a higher reliance on debt financing, which could pose risks in volatile market conditions.Cash Flow
Seche Environnement demonstrates strong cash flow management with a free cash flow growth rate of 22.0%, highlighting robust cash generation capabilities. The operating cash flow to net income ratio is favorable at 5.67, suggesting efficient conversion of income into cash. Additionally, the free cash flow to net income ratio of 3.28 further underscores the company's ability to maintain liquidity and fund operations effectively.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.26B | 1.19B | 1.09B | 972.68M | 790.12M | 673.08M |
| Gross Profit | 724.53M | 1.04B | 631.16M | 561.06M | 462.87M | 376.25M |
| EBITDA | 209.14M | 211.03M | 177.61M | 164.35M | 138.09M | 124.97M |
| 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 | 338.53M | 169.75M | 162.47M | 126.17M | 172.20M | 105.27M |
| Total Debt | 1.15B | 1.02B | 781.85M | 739.01M | 671.76M | 557.88M |
| Total Liabilities | 1.67B | 1.53B | 1.24B | 1.09B | 949.92M | 837.33M |
| 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 | 48.26M | 52.70M | 54.96M |
| Operating Cash Flow | 206.47M | 201.20M | 187.31M | 148.12M | 142.27M | 121.36M |
| Investing Cash Flow | -305.15M | -304.35M | -168.73M | -189.48M | -117.61M | -73.24M |
| Financing Cash Flow | 263.19M | 106.20M | 18.76M | -5.20M | 46.96M | -30.04M |
Seche Environnement Technical Analysis
Positive
17.90
Price Trends
16.19
Positive
17.64
Positive
19.39
Negative
Market Momentum
0.38
Negative
69.39
Neutral
98.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SECVY, the sentiment is Positive. The current price of 17.9 is above the 20-day moving average (MA) of 16.79, above the 50-day MA of 16.19, and below the 200-day MA of 19.39, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 69.39 is Neutral, neither overbought nor oversold. The STOCH value of 98.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SECVY.
Seche Environnement Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.22B | 34.34 | 14.64% | ― | 2.85% | -6.27% | |
70 Outperform | $695.19M | 14.67 | 12.08% | 1.99% | 15.40% | 33.70% | |
69 Neutral | $909.94M | -27.28 | -4.17% | ― | 22.77% | 44.73% | |
69 Neutral | $6.35B | 415.55 | 0.98% | ― | 20.54% | 106.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $1.48B | -8.83 | -38.53% | ― | -2.91% | -67.18% |
* Industrials Sector Average
SECVY
Seche Environnement
17.90
2.15
13.66%
CWST
Casella Waste
99.69
-9.00
-8.28%
CLH
Clean Harbors
247.49
17.53
7.62%
NVRI
Enviri
18.29
9.89
117.74%
MEG
Montrose Environmental Group
25.75
3.99
18.34%
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.