The sky seems to be clearing up for Derichebourg, boosted by the post-Covid economic recovery, which is leading to an explosion in metal prices to record levels, in particular with an annual increase of 20% for copper or 43% for copper. ‘aluminum. This allowed the recycler to take care of its financial performance, the profitability of which depends directly on the resale price of the metals.
Exceptional is the term to describe the group’s performance on behalf of its 2020-2021 financial year, with a turnover of 3.6 billion euros, up 46.8% over the year, and a net profit multiplied by 8 for an amount of 174 million euros. Good news for shareholders, after an exceptional vintage, the company has undertaken to restore the payment of a dividend of 0.32 euro.
A size change?
The French recycling pioneer announced a few weeks ago that it had carried out a structuring operation, by acquiring its direct competitor Ecore, the number 2 in recycling in France, present in 7 countries for a turnover of 1.3 billion euros. euros. This acquisition is perfectly in line with Derichebourg’s strategic fundamentals, allowing it to develop its territorial network and avoiding the transport of the millions of tonnes of materials that the company collects and recovers. Indeed, the group wishes to increase its presence on the European and global market for the sale of scrap metal and non-ferrous metals, because it is convinced that demand will continue to grow in the years to come, in a context where the need to recycle seems to be an indisputable solution to the fight against global warming.
The metal recycler is changing, from now on in size, with the largest external growth operation in its history. The Derichebourg group is part of the ecological transition and the Green Pact advocated by the European Union, which sets ambitious objectives to meet climate challenges and will contribute in particular to the European production of green steel, more economical in CO2 emissions.
The Derichebourg stock has taken off nicely since the rebound from the low trading range around 2.40 euros in 2020. The stock has entered a bullish momentum.
We will aim for the upper zone of this same range, and more precisely the 15.50 euros, ie an increase of around 40% compared to the current price. In support, the moving averages 100 and 200 days.
We will place a stop at 8.5 euros, or about 20% below the current price.
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