Seche Environnement (SECVY) AI Stock Analysis

• Market Cap: $687.43M
• Dividend Yield: 1.99%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.53
• Revenue Growth: 15.40%
• EPS Growth: 33.70%
• Country: US
• Employees: 7,238
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.17
• Shares Outstanding: 39,288,660
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.68
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 7.26
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 5.84
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $17.50 ▼(-2.23% Downside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is held back primarily by weakening recent financial performance (revenue decline, thinner net margins, weaker ROE) and high leverage, despite stable operating cash flow. Technicals are supportive but somewhat stretched, valuation looks demanding at ~28x earnings with only a modest yield, and the latest earnings call was a relative positive due to strong H1 results and refinancing/contract wins tempered by margin headwinds and execution risks.

Positive Factors

Stable operating cash generation

Reported operating cash flow of €63m demonstrates durable cash generation that supports working capital, debt servicing and reinvestment. Strong operating cash reduces refinancing risk, underpins liquidity targets and gives management runway to execute long-term contracts and selective M&A without depending solely on equity markets.

Accretive ECO integration

ECO’s contribution (€37m revenue, 43% EBITDA margin) shows the company can integrate acquisitions that are highly margin-accretive and cash-generative. This diversifies revenue toward higher-value recovery services, improving structural profitability potential and strengthening the business mix over the medium term.

Long-duration contract wins

Securing multi-year public and construction contracts (20-year Valo’Loire, €180m; €300m construction) increases revenue visibility and backlog. These long-duration agreements stabilize asset utilization, support predictable cash flows and reduce exposure to short-term industrial demand cycles, strengthening competitive positioning.

Negative Factors

Elevated financial leverage

Debt-to-equity remaining above ~1.9x (historically ~2.2–2.8x) limits balance sheet flexibility and raises refinancing and interest-rate sensitivity. High leverage constrains capital allocation, increases downside risk if margins weaken, and reduces headroom for opportunistic investment or large-scale organic expansion without additional financing.

Weakening revenue and margins

A 2025 revenue decline (−4.49%) alongside net margin compression to ~1.7% and ROE falling to ~3.1% signals structural pressure on profitability. Sustained top-line weakness and thin bottom-line returns reduce internal funding capacity, limit reinvestment, and make operational improvements or margin recovery critical for long-term value creation.

Deteriorating free cash flow conversion

FCF growth plunged −32.23% in 2025 and FCF has generally converted at below 1.0x net income, limiting surplus cash for deleveraging or capex. Weak FCF conversion constrains the company’s ability to reduce leverage, invest in facility upgrades, or absorb project delays without resorting to external funding, raising medium-term execution risk.

Seche Environnement Business Overview & Revenue Model

Company Description

Séché 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 Money

Séché Environnement makes money primarily by charging customers for environmental services delivered under contracts and service agreements. Key revenue streams include: (1) Waste treatment and recovery fees: revenues generated from accepting hazardous and non-hazardous waste at company-operated facilities and charging per-ton (or per-service) fees for treatment processes such as incineration, physico-chemical treatment, stabilization, recycling/recovery, and secure landfill where applicable. (2) Industrial services and on-site operations: revenues from providing recurring services to industrial and public-sector clients (e.g., waste collection/logistics, handling, sorting, maintenance and operation of waste-related installations on customer sites) billed via fixed-price contracts, unit-based pricing, or multi-year operating contracts. (3) Remediation and emergency response projects: project-based revenues from site decontamination, soil remediation, and environmental clean-up services, typically invoiced based on project milestones, time-and-materials, or negotiated lump-sum contracts. (4) Valorization/energy and material recovery: to the extent the company recovers energy or materials from waste, it can earn additional revenue from selling recovered outputs (e.g., energy, secondary raw materials); if specific figures or product categories are not publicly detailed in a given source, this component is null at a granular level. Partnerships, regulatory approvals, and long-term customer relationships (industrial groups and public entities) can contribute to earnings by providing stable waste volumes and multi-year contracts, but specific named partnerships and their financial contribution are null unless explicitly disclosed in public filings.

Seche Environnement Financial Statement Overview

Summary

Operating model is fairly resilient with stable EBITDA margins and solid operating cash flow, but fundamentals have weakened recently: revenue declined in 2025 (-4.49%), net margins compressed to ~1.7% in 2025, leverage remains elevated (debt-to-equity >1.9x), and ROE fell sharply (~3.1% in 2025). Free cash flow also deteriorated in 2025 (-32.23%), limiting flexibility.

Income Statement

Revenue growth has cooled materially, moving from strong growth in 2021–2023 to roughly flat in 2024 and a decline in 2025 (-4.49%). Profitability is steady at the operating level (EBITDA margin ~16%–19% and fairly consistent), but the company’s bottom-line profitability has weakened, with net margin falling from ~4%–5% (2022–2023) to ~3.0% (2024) and ~1.7% (2025). Overall, the earnings profile looks operationally resilient, but the recent demand/price pressure and thinner net margins weigh on the score.

Balance Sheet

Leverage is elevated, with debt-to-equity above 1.9x in 2025 and mostly in the ~2.2x–2.8x range historically, which increases financial risk and limits flexibility. A positive offset is the notable expansion in equity in 2025 (and a lower debt-to-equity versus 2024), but returns on equity have fallen sharply to ~3.1% in 2025 from double-digit levels in prior years, reflecting weaker profitability relative to the capital base. Overall balance sheet strength is constrained by consistently high leverage despite some recent improvement.

Cash Flow

Cash generation from operations is solid and relatively stable across years, supporting the business through a softer earnings period. However, free cash flow has become more volatile, declining meaningfully in 2025 (free cash flow growth -32.23%), and free cash flow relative to net income has generally been below 1.0x, implying earnings are not translating into surplus cash at a high rate. Cash flow remains a key support, but the recent deterioration in free cash flow and only moderate conversion versus profits keep the score in the middle range.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.21B	1.19B	1.09B	972.68M	790.12M
Gross Profit	165.93M	1.04B	631.16M	561.06M	462.87M
EBITDA	211.06M	211.03M	177.61M	164.35M	138.09M
Net Income	20.63M	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	705.82M	169.75M	162.47M	126.17M	172.20M
Total Debt	1.25B	1.02B	781.85M	739.01M	671.76M
Total Liabilities	1.73B	1.53B	1.24B	1.09B	949.92M
Stockholders Equity	665.51M	363.75M	338.34M	310.10M	269.47M
Cash Flow
Free Cash Flow	79.48M	116.47M	95.49M	48.26M	52.70M
Operating Cash Flow	184.96M	201.20M	187.31M	148.12M	142.27M
Investing Cash Flow	-118.55M	-304.35M	-168.73M	-189.48M	-117.61M
Financing Cash Flow	452.32M	106.20M	18.76M	-5.20M	46.96M

Seche Environnement Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.90
• 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 SECVY, the sentiment is Positive. The current price of 17.9 is above the 20-day moving average (MA) of 15.86, above the 50-day MA of 16.33, and below the 200-day MA of 18.80, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 69.35 is Neutral, neither overbought nor oversold. The STOCH value of 98.87 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLH	74 Outperform	$15.40B	31.90	14.47%	―	2.85%	-6.27%
MEG	74 Outperform	$796.61M	-1,034.44	-0.17%	―	22.77%	44.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SECVY	55 Neutral	$687.43M	27.99	12.08%	1.99%	15.40%	33.70%
CWST	52 Neutral	$5.46B	789.67	0.50%	―	20.54%	106.35%
NVRI	45 Neutral	$1.48B	-8.63	-38.53%	―	-2.91%	-67.18%