Buy signal on Derichbourg (DBG-FR)

We had an Enter Long signal on December 7th 2020, triggered by our system on DBG-FR, Derichebourg the French Recycling company.

Derichebourg is a €691 Mn market cap and specialize in supplying services to companies and to communities. Revenues split between 1/ supply of environmental services (68% of sales) including the collection and recycling of ferrous and non-ferrous metals, management of industrial and household waste, pollution clean-up, reuse and recycling of end-of-life capital and consumer goods, etc.; 2/supply of services to businesses (32% of sales) including cleanliness, interim and recruitment services, remote monitoring services, hostile environments services, etc.

Net sales are mainly achieved in France (80%), Europe (12%), Americas (6%) and Africa (2%).

Derichebourg showed resilience in 2020, posting a -8.9% revenue decline at €2.5bn (versus €2.7bn) coupled with an EBITDA of €181M only 5.4% lower than last year. The company expects a +15 to +20% EBITDA increase in 2021 thanks to higher metal prices and stronger cleanliness segment.

Short term catalyst: rising metal prices.

This signal looks consistent with the Major Bullish Trend in the European Industrial sector.