AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Dolfines

CR
Bloomberg   ALDOL FP
Engineering-Heavy Constr.  /  France  Web Site   |   Investors Relation
Activity recovers in oil & gas

Sustainability score
Company (Sector)
2.4 (5.8)

Sustainability is made of analytical items contributing to the E, the S and the G, that can be highlighted as sustainability precursors and can be combined in an intellectually acceptable way. This is the only scale made available

  Score Weight  
Governance   
Independent directors rate 6/10 25%More ...
Board geographic diversity 0/10 20%
Chairman vs. Executive split 5%
Environment   
CO² Emission 1/1025%More ...
Water withdrawal 1/1010%
Social   
Wage dispersion trend0/105%More ...
Job satisfaction0/105%
Internal communication10/105%


Sustainability score 2.4/10 100%  
Sustainability matters

All in all, the group’s focus towards renewables is sound and in line with the ongoing energy transition. The acquisition of 8.2 France in 2021 reinforces this and allows for a recurring activity in wind services.


Environmental Score
Company (Sector)
1.15 (3.90)
Data sets evaluated as trends on rolling calendar, made sector relative
ParametersScoreSectorWeight
Energy 1/104/1025%
CO² Emission 1/104/1030%
Waste 2/104/1015%
Water withdrawal 1/104/1030%
Environment matters

As a small engineering company with no hard assets, we expect Dolfines’ direct emissions to be minimal and tied to its consumption of energy (i.e. fuel for transport, electricity in offices).

Environmental metrics


Energy (GJ) per €m in capital
employed

CO² tons per €m in capital
employed

Cubic meter water
withdrawal per €m in capital
employed

Tons waste generated per €m in
capital employed
Dolfines Capital Goods
Sector figures
Company CountryEnvironment
score
Energy
(total,
in GJ)
CO2
Emissions
(in tons)
CO2
Compensation
(in tons)
Water
Withdrawal
(in m3)
Waste
(total,
(in tons)
        
ABB 8/105,817,600562,000 3,224,000192,000
Alfa Laval 10/10935,26940,535 629,06526,884
Alstom 9/101,688,40099,000 773,00036,848
Atlas Copco 10/101,263,60077,000 384,00031,036
AutoStore 1/10n/an/a n/an/a
Bekaert 2/1016,477,2001,454,875 8,088,000n/a
Bilfinger 1/10n/a53,797 n/an/a
Danieli & Co 2/107,941,000767,744 n/an/a
Dolfines 1/10n/an/a n/an/a
Elecnor 2/10n/a57,070 n/an/a
FLSmidth & Co 6/10728,87036,831 217,181n/a
GEA Group 3/10n/a64,680 284,70013,208
IMI 4/10603,64245,498 n/an/a
ITM Power 5/10n/an/a 039
Kone 3/101,763,280135,100 315,30039,600
KUKA 9/10283,29527,569 93,3555,689
Legrand 8/101,461,600148,000 698,00050,000
Metso Outotec 6/101,404,000111,001 1,392,00074,739
Nexans 4/103,397,604232,391 1,802,86770,725
Nordex SE 7/10405,68122,582 143,28227,599
OC Oerlikon 6/101,403,280146,300 706,40020,400
Ocado Group PLC 2/10n/a109,411 n/an/a
Prysmian 3/109,448,439832,938 8,847,815190,984
Quadient 9/1078,49112,014 33,0251,697
Sandvik 9/106,939,000274,000 7,232,000327,000
Schindler 1/102,502,000204,800 600,00043,400
Schneider Electric 9/104,335,772287,356 1,928,032125,292
Siemens 8/109,863,000594,000 15,050,000275,500
Siemens Gamesa Renewable En... 9/101,153,47128,805 553,27063,127
Vestas Wind Systems 7/102,235,60073,000 421,00089,000
Wärtsilä 5/101,319,00099,217 11,373,00023,370
Zardoya Otis 1/10114,896n/a 5,27741

Social score
Company (Sector)
1.3 (6.4)
Social matters

Given the size of the company, there is limited information on social matters.

Quantitative metrics (67%)
Set of staff related numerical metrics available in AlphaValue proprietary modelling aimed at ranking on social/HR matters
ParametersScoreWeight
Staffing Trend1/1020%
Average wage trend1/1035%
Share of added value taken up by staff cost1/1025%
Share of added value taken up by taxes1/1020%
Wage dispersion trend0/100%
Pension bonus (0 or 1)0 
Qualitative metrics (33%)
Set of listed qualitative criterias and for the analyst to tick

ParametersScoreWeight
Accidents at work0/1025%
Human resources development3/1035%
Pay0/1020%
Job satisfaction0/1010%
Internal communication10/1010%
   




Sector figures
CompanyCountrySocial Score Quantitative scoreQualitative scoreStaffing
      
Siemens 7.87.29.0294,465
OC Oerlikon 7.77.38.610,767
GEA Group 7.56.79.318,783
Schneider Electric 7.36.78.6158,591
Schindler 7.36.010.069,368
Alfa Laval 7.26.29.317,298
AutoStore 7.26.97.9925
Atlas Copco 7.16.48.640,430
IMI 7.06.48.310,938
Bilfinger 7.06.57.931,395
Wärtsilä 6.96.77.517,783
Siemens Gamesa Renewable En... 6.96.18.626,331
FLSmidth & Co 6.76.47.312,234
Zardoya Otis 6.66.07.73,139
Bekaert 6.56.27.126,365
Prysmian 6.45.29.029,465
Ocado Group PLC 6.46.95.417,465
Legrand 6.25.87.237,650
Nexans 6.04.39.724,880
Vestas Wind Systems 6.04.110.027,576
KUKA 5.96.15.613,720
Kone 5.95.07.865,372
Metso Outotec 5.95.17.615,284
Sandvik 5.95.66.640,887
Quadient 5.94.98.05,446
ABB 5.95.07.6106,659
Alstom 5.86.25.274,973
Elecnor 5.75.85.520,260
Danieli & Co 5.16.32.910,025
ITM Power 5.14.66.1320
Nordex SE 4.64.74.48,612

Sustainability / ESG by AlphaValue:

Doubt driven, focused on dynamics


AlphaValue was set up in 2009 as an ESG native firm: since inception, no research could be published without filling up the ESG relevant items. ESG has always been there as a natural building block of the research effort.

Without much pretence, AlphaValue has accumulated 11 years of proprietary, practical data in a consistent way that has been made to “talk” with financial data. The efforts have been aimed at solving the main conundrum of ESG analytics: avoiding useless and noisy data. AlphaValue ESG data is intimately connected to the fundamental research work and its continuous updating process. In other words, AlphaValue ESG data can be made to resonate at will in terms of financial implications for those investors with the willingness to do so.

Over the last 3 years, this data, or rather the dynamic of this data, has been put at work so that it impacts directly and consistently on valuations across AlphaValue’s 450 + stocks universe. This is considerable progress vs. the dominant “consumption” of ESG raw data: ESG-type conclusions are sitting next to valuation fundamentals but hardly any investor is in a position to bridge effectively the two in a consistent and repeatable way. It takes more than a spreadsheet to get stable and auditable results that work 100% of the time.

AlphaValue reckons that it currently is the only equity research provider in Europe to have reached this stage: a perfectly smooth on-boarding of ESG data, on a continuing basis, impacting valuation fundamentals day and night.

This is available on every stock, every sector, every stock selection, every day.


Heretical ESG opinions?


ESG is a contradiction in terms. Without a good Governance, the Social and Environment items will never show progress. Social is for stakeholders and thus unlikely to please shareholders. The long-term view that good pay/working conditions are ultimately good for shareholders is, like any promise, better left to those who want to believe in it. It does not work for normal investment horizons

Environmental gains will not happen without good Governance but this is not enough as environmental progress will not happen without coercion from governments/supra-governments. There is no reason why a corporate will spend more for a possible collective gain tomorrow when it can have better returns now for its shareholders.

The environment is a cost of massive complexity and a universal one as data improves and allows for intricate tracking of what corporates are up to. There is no practical way a corporate can be valued through a web of changing definitions of environmental data. AlphaValue holds the view that all corporates are made to pay through lower GDP growth expectations resulting from friction costs. The only dimension that really matters from an investment perspective is whether a given corporate makes an extra effort vs. peers. A good ‘E’ rating shall not be driven by absolute levels but by the dynamic of emission controls relative to peers. Dumping cement stocks because they spit out carbon is a narrow view of what ESG implies.

Sustainability scores only

AlphaValue always refused to supply a pecking order of its coverage along some improbable ESG scale. It just does not make sense to mix opposing signals in a single ranking.

Sustainability is a different proposition where analytical items contributing to the E, the S and the G can be highlighted as sustainability precursors and combined in an intellectually acceptable way. This is the only scale made available by AlphaValue.

Sustainability impacts target prices

From 1-12-2020, AlphaValue substituted sustainability metrics for its Governance and Social ones when it comes to impacting valuations;

Indeed since 2019, all DCF (or DCF equivalents for Financials) have been impacted by Governance and Social metrics to connect directly ESG-type findings into share price targets and bring consistency across the board. The impact is driven by adjusting the small ‘g’ conventionally used to assess the growth to infinity. This is being tweaked to recognise, say, that good governance ultimately pays off.

The same procedure is now stemming from Sustainability metrics instead.

For the record, this has been made possible as AlphaValue has finalised its proprietary E scoring, now extended to 4 items (GHG, Waste, Water, Energy) on which a degree of data stability seems to emerge.