Séché Environnement SA (SCHP.PA) fair value

ACCE thesis

Séché Environnement runs French hazardous and non-hazardous waste treatment, landfill, and recycling sites, with a large share of its revenue coming from regulated, long-dated disposal contracts that are hard to replicate once permitted. Its moat rests on those permits and on the scarcity of licensed hazardous-waste capacity in France, which gives it pricing power that generic waste haulers lack. The near-term driver is volume and mix: revenue growth of 6.4% is running alongside a forward P/E of 11.2 against a trailing 32.2, a gap that signals the market expects earnings to recover from a depressed base rather than simply extrapolate the past. The reported 7.5% operating margin and 3.9% ROE are thin, so the case depends on whether margins rebuild toward the 56.6% gross margin level as volumes and pricing hold. That is the part worth checking in the filings before anything else.