DERICHEBOURG: Derichebourg: a new lease of life – Investing

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 even 43% for l ‘aluminum. This enabled the recycler to improve 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 multiplied net income by 8 for an amount of 174 million euros. Good news for the shareholders, after an exceptional vintage, the company has undertaken to reinstate the payment of a dividend of 0.32 euro.

A change of dimension?

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. This acquisition is perfectly in line with Derichebourg’s strategic fundamentals, allowing it to develop its territorial network and avoiding the transport of millions of tonnes of materials that the company collects and recycles. Indeed, the group wishes to increase its presence on the European and world market for the marketing of scrap and non-ferrous metals, because it is convinced that demand will continue to grow over the coming years, in a context where the need to recycle seems to be an indisputable solution to the fight against global warming.

The metals recycler is changing, henceforth 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, which is more energy efficient. emissions CO2.

The Derichebourg share marks a strong surge since the rebound in the low zone of the trading range around 2.40 euros in 2020. The title has entered a bullish dynamic.

We will target the high zone of this same range, and more precisely the 15.50 euros, an increase of around 40% compared to the current price. In support, the 100 and 200 day moving averages.

We will place a stop at 8.5 euros, or about 20% below the current price.

Promotional recommendation.