Derichebourg (DBG) AI Stock Analysis

• Market Cap: €999.42M
• Dividend Yield: 2.06%
• Average Volume (3M): 171.27K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.28
• Revenue Growth: -0.41%
• EPS Growth: -45.34%
• Country: FR
• Employees: 42,908
• Sector: Industrials
• Sector Strength: 88
• Industry: Waste Management
• EPS (TTM): 0.47
• Shares Outstanding: 159,397,490
• 10 Day Avg. Volume: 158,435
• 30 Day Avg. Volume: 171,272
• PEG Ratio: -0.57
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.83
• 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

Derichebourg's stock score reflects a mixed financial performance with strong cash flow and cost management but declining revenues and profitability. Technical indicators suggest a cautious approach due to downward price trends. Valuation is reasonable with a fair P/E ratio and moderate dividend yield, but risks remain with profitability challenges.

Derichebourg Business Overview & Revenue Model

Company Description

Derichebourg (DBG) is a global leader in environmental services, providing a wide range of solutions in recycling, waste management, and municipal services. The company operates in sectors such as recycling of ferrous and non-ferrous metals, urban infrastructure services, and industrial maintenance. With a commitment to sustainability, Derichebourg offers comprehensive services that cater to both private and public sector clients, ensuring efficient resource management and environmental conservation.

How the Company Makes Money

Derichebourg generates revenue primarily through its diverse range of environmental services. The recycling division, which processes ferrous and non-ferrous metals, is a significant contributor to its income, capitalizing on the demand for raw material recovery and sustainable resource management. Additionally, the company's waste management services, including collection, sorting, and treatment of waste, provide another key revenue stream. Urban infrastructure services, such as street cleaning, waste collection for municipalities, and facility management, further bolster their earnings. Derichebourg's industrial services, offering maintenance and outsourcing solutions to businesses, also contribute to its financial performance. Strategic partnerships with municipalities and industrial clients, along with a focus on operational efficiency and sustainability, are crucial factors enhancing the company's profitability.

Derichebourg Financial Statement Overview

Summary

Derichebourg exhibits mixed financial health with solid cash generation and reasonable leverage, but faces challenges in profitability. While the company shows strong cost management and cash flow improvements, declining revenue and net margins pose potential risks. Maintaining profitability while leveraging operational efficiencies will be key to future financial performance.

Income Statement

Derichebourg's income statement shows a decline in revenue over the past year, with TTM (Trailing-Twelve-Months) revenue of €3.62 billion, down from €4.35 billion in 2022. The gross profit margin improved significantly to 32.5% from 5.8% in the previous year, indicating better cost management. However, the net profit margin decreased to 2.1% from 5.5%, highlighting challenges in maintaining profitability. The EBIT margin also declined to 4.9% from 7.5%. Overall, there are signs of operational efficiency, but profitability remains a concern.

Balance Sheet

The balance sheet of Derichebourg indicates financial stability with a debt-to-equity ratio of 0.88, showing manageable leverage. The equity ratio stands at 40.2%, reflecting a strong capital base relative to assets. The return on equity (ROE) decreased to 7.3% from a higher 24.4% in 2022, indicating reduced profitability for shareholders. Overall, the company maintains a stable financial position with reasonable leverage.

Cash Flow

Derichebourg's cash flow statement shows a strong operating cash flow to net income ratio of 4.39, suggesting robust cash generation relative to net earnings. Free cash flow grew significantly to €181.8 million, up from €69.9 million in 2023, indicating improved cash management. However, the free cash flow to net income ratio is lower at 2.43, which signals potential challenges in converting earnings to free cash. Overall, the cash flow position is strong, but there are areas for improvement in translating earnings into free cash flow.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.62B	3.62B	4.35B	3.62B	2.46B
	Gross Profit
1.18B	211.30M	361.00M	306.80M	119.50M
	EBIT
176.00M	244.70M	328.20M	258.00M	60.60M
	EBITDA
336.30M	397.90M	457.90M	388.20M	172.20M
	Net Income Common Stockholders
74.80M	136.90M	237.60M	174.00M	21.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
192.20M	162.60M	326.20M	787.60M	361.90M
	Total Assets
2.56B	2.59B	2.88B	2.46B	1.88B
	Total Debt
905.90M	933.70M	976.60M	983.30M	703.10M
	Net Debt
713.70M	772.60M	653.40M	195.80M	341.20M
	Total Liabilities
1.53B	1.59B	1.96B	1.76B	1.35B
	Stockholders Equity
1.03B	990.40M	918.80M	703.10M	521.60M
Cash Flow		Free Cash Flow
181.80M	69.90M	260.10M	243.40M	95.50M
	Operating Cash Flow
328.30M	234.30M	389.90M	311.90M	165.60M
	Investing Cash Flow
-98.20M	-191.20M	-657.90M	-76.20M	-220.70M
	Financing Cash Flow
-191.80M	-204.60M	-198.50M	189.50M	132.80M

Derichebourg Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:DBG, the sentiment is Positive. The current price of 6.27 is above the 20-day moving average (MA) of 5.97, above the 50-day MA of 5.73, and above the 200-day MA of 5.16, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:DBG.

Derichebourg Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIE	72 Outperform	€21.77B	19.55	13.14%	4.19%	-1.45%	14.74%
RCO	71 Outperform	€2.59B	15.52	8.90%	3.95%	-17.22%	-11.33%
SW	65 Neutral	€8.35B	12.35	16.07%	4.64%	6.71%	141.19%
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
DBG	60 Neutral	€999.42M	13.35	7.40%	2.06%	-0.41%	-45.34%

Derichebourg Corporate Events

Derichebourg Inaugurates Advanced Metal Recycling Facility in France

Derichebourg Environnement inaugurated a new high-performance metal recycling facility in Saint-Pierre-de-Chandieu, enhancing its capabilities in recycling end-of-life products and producing recycled raw materials for European steel mills. This 45 million euro investment aims to significantly reduce the carbon footprint of steel production and support the circular economy, aligning with the European Clean Industrial Deal’s objectives. The facility also features a recycling line for waste electrical and electronic equipment and a solid recovered fuel production line, contributing to industry decarbonization and energy independence.