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
Capital increase to bring some order

Sustainability score
Company (Sector)
5.5 (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 10/1025%More ...
Water withdrawal 10/1010%
Social   
Wage dispersion trend0/105%More ...
Job satisfaction0/105%
Internal communication10/105%


Sustainability score 5.5/10 100%  
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)
10.0 (4.5)
Data sets evaluated as trends on rolling calendar, made sector relative
ParametersScoreSectorWeight
CO² Emission10/105/10 30%
Water withdrawal10/104/10 30%
Energy10/105/10 25%
Waste10/104/10 15%
Environmental score10.0  100%
Environment matters

A lack of data given the size of the company, yet as an 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

0
Energy (GJ) per €m in capital
employed
0
CO² tons per €m in capital
employed
0
Cubic meter water
withdrawal per €m in capital
employed
0
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)
        
Aalberts 4/103,835,000257,000 1,567,000 
ABB 8/105,590,800404,700 2,839,000194,000
Alfa Laval 10/101,158,07728,458 665,00025,923
Alstom 9/103,592,800230,000 796,00034,459
ANDRITZ BH 5/102,012,203120,700 954,85440,739
Atlas Copco 10/101,386,00052,000 395,00035,071
AutoStore 4/10 737   
Bekaert 2/1018,482,4001,709,235 8,975,000107,760
Bilfinger 5/1021759,373   
Bossard BH 1/10     
Bucher Industries BH 3/101,184,82880,317 0 
Burckhardt Compression BH 1/1024,250  24,800341
Danieli & Co 1/108,037,939759,377 2,003,000157,490
Datwyler BH 2/10889,48489,387 1,564,02814,119
DolfinesCR 10/1000 00
Dürr BH 7/10442,83248,372 175,58710,556
Elecnor 2/10 63,959  38,012
FLSmidth & Co 6/10 34,737 201,997 
GEA Group 8/10915,23950,8030357,84913,037
Georg Fischer BH 1/103,092,000284,000 2,013,00083,000
Heidelberger Druck BH 1/10878,40079,533 149,16924,650
HUBER+SUHNER BH 1/10173,44811,203 915,9333,941
IMI 5/10618,38744,130   
Interroll BH 8/1040,0009,500 12,5001,200
ITM Power 6/1016,976452 0129
Jenoptik BH 9/10223,9927,714 72,0091,354
Jungheinrich Pref. BH 6/10802,50542,166  16,275
KION Group BH 8/102,271,351200,980 584,00076,307
Komax BH 1/1022,777  2,88042
Kone 2/101,905,120130,900 328,20037,400
Krones BH 6/10422,15734,155 183,5341,657
Landis+Gyr Group AG BH 10/1046,38013,107 90,5283,000
Legrand 9/101,630,800139,000 727,00056,000
Metso Outotec 7/101,482,000134,927 1,271,00063,700
Nel 6/1089,9392,030   
Nexans 3/103,976,408252,999 1,702,39170,670
Nordex SE 7/10430,62514,788 99,10021,407
NORMA Group BH 7/10468,61243,449 160,58612,905
OC Oerlikon BH 1/101,403,280146,300 706,40020,400
Ocado Group PLC 4/101,693,127118,846   
Prysmian 4/109,736,699824,458 8,642,129212,703
Quadient 10/1064,3469,527 27,3131,056
RATIONAL BH 9/1049,2552,299 22,0881,811
Rieter BH 6/10432,00060,000 250,00012,000
Rosenbauer BH 8/10214,93811,862 80,9313,660
Sandvik 9/107,337,000417,000 7,858,000352,000
Schindler 6/102,407,071144,714 503,71246,425
Schneider Electric 9/104,771,768294,051 2,072,263136,816
Schweiter Technologies BH 1/101,494,202110,645  19,285
Semperit BH 1/105,662,998422,536 9,900,00024,890
SFS Group BH 1/10 112,441   
Siemens 9/109,863,000594,000 15,050,000275,500
Siemens Gamesa Renewable E... 9/101,153,47128,805 553,27063,127
Sulzer BH 1/10878,10981,339 987,57619,546
VAT Group BH 8/10108,66712,090 86,1574,191
Vestas Wind Systems 8/102,656,800102,000 378,00070,000
Wärtsilä 5/101,339,00090,773 11,348,00016,020

Social score
Company (Sector)
4.4 (6.5)
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 Trend2/10 20%
Average wage trend10/10 35%
Share of added value taken up by staff cost1/10 25%
Share of added value taken up by taxes1/10 20%
Wage dispersion trend0/10 0%
Pension bonus (0 or 1)0
Quantitative score4.4/10 100%
Qualitative metrics (33%)
Set of listed qualitative criterias and for the analyst to tick

ParametersScoreWeight
Accidents at work10/10 25%
Human resources development3/10 35%
Pay0/10 20%
Job satisfaction0/10 10%
Internal communication10/10 10%
  
Qualitative score4.6/10 100%


Sector figures
CompanyCountrySocial Score Quantitative scoreQualitative scoreStaffing
      
Interroll BH 8.37.410.02,691
ANDRITZ BH 7.97.110.027,980
Rosenbauer BH 7.87.58.64,250
Schneider Electric 7.77.29.3169,362
Krones BH 7.67.09.017,250
GEA Group 7.66.98.318,336
Dürr BH 7.67.48.418,950
Rieter BH 7.66.410.04,957
Siemens 7.57.39.3311,100
Schindler 7.36.110.070,402
Bossard BH 7.27.66.42,747
NORMA Group BH 7.27.27.66,450
Aalberts 7.25.810.015,013
IMI 7.26.19.711,516
VAT Group BH 7.15.810.03,102
Alfa Laval 7.16.18.218,473
Siemens Gamesa Renewable En... 7.06.08.626,531
OC Oerlikon BH 7.06.28.612,708
Ocado Group PLC 6.97.85.420,537
Bilfinger 6.86.77.930,193
Heidelberger Druck BH 6.87.06.89,520
Atlas Copco 6.85.48.641,050
AutoStore 6.84.67.91,363
Jungheinrich Pref. BH 6.77.06.118,850
Bucher Industries BH 6.77.16.114,189
ABB 6.66.39.3105,447
RATIONAL BH 6.66.86.22,390
Jenoptik BH 6.65.98.64,560
KION Group BH 6.56.27.642,500
Prysmian 6.55.69.030,657
Wärtsilä 6.55.67.517,554
FLSmidth & Co 6.46.37.312,315
Nel 6.46.16.6729
Nexans 6.34.99.725,970
Bekaert 6.35.87.127,447
Quadient 6.35.68.64,878
Legrand 6.25.48.339,556
Vestas Wind Systems 6.14.010.030,342
Georg Fischer BH 6.07.14.815,175
Elecnor 6.06.45.523,178
Sandvik 5.95.66.643,634
Kone 5.94.87.865,254
Alstom 5.96.65.277,303
Metso Outotec 5.84.87.615,460
Komax BH 5.86.94.53,127
Datwyler BH 5.64.87.68,668
Burckhardt Compression BH 5.65.45.72,746
Nordex SE 5.35.37.08,832
Danieli & Co 5.26.33.99,325
HUBER+SUHNER BH 5.24.07.64,797
SFS Group BH 5.17.90.013,893
Schweiter Technologies BH 5.16.61.74,617
Landis+Gyr Group AG BH 5.03.39.30.00
ITM Power 4.62.87.6600
Sulzer BH 4.24.92.514,522
Semperit BH 3.85.60.07,192

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.