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
Acquisitions and new management ensure growth but financing still a headache

Sustainability score
Company (Sector)
4.6 (5.7)

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 1/1010%
Social   
Wage dispersion trend0/105%More ...
Job satisfaction0/105%
Internal communication10/105%


Sustainability score 4.6/10 100%  
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)
3.7 (4.1)
Data sets evaluated as trends on rolling calendar, made sector relative
ParametersScoreSectorWeight
CO² Emission10/104/10 30%
Water withdrawal1/104/10 30%
Energy1/104/10 25%
Waste1/104/10 15%
Environmental score3.7  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 5/104,062,000254,000 1,505,000 
ABB 8/105,101,200224,000 2,815,000182,000
Alfa Laval 10/101,125,88923,129 739,00027,574
Alstom 8/103,211,200179,000 1,412,00065,869
ANDRITZ BH 3/102,254,211102,443 1,249,82547,866
Atlas Copco 10/101,865,000108,000 403,00039,112
AutoStore 3/10 8,119   
Bekaert 4/1017,596,8001,606,581 8,402,000101,530
Bilfinger 7/10795,01752,191 108,2835,229
Bossard BH 1/10     
Bucher Industries BH 1/101,184,82880,317 0 
Burckhardt Compression BH 1/1024,250  24,800341
Danieli & Co 1/108,037,939759,377 2,003,000157,490
Datwyler BH 1/10889,48489,387 1,564,02814,119
DolfinesCR 4/1000 00
Dürr BH 8/10492,75427,762 191,76111,145
Elecnor 3/10 77,732  35,904
FLSmidth & Co 6/10 36,767 178,064 
GEA Group 8/10876,59333,0180347,97213,437
Georg Fischer BH 1/103,092,000284,000 2,013,00083,000
Heidelberger Druck BH 7/10795,60065,717 165,22435,264
HUBER+SUHNER BH 1/10173,44811,203 915,9333,941
IMI 7/10569,60540,480 193,547387,000
Interroll BH 6/1011,178,0009,531 43,0004,286
ITM Power 5/1015,723184 0129
Jenoptik BH 6/10223,9926,515 98,8741,078
Jungheinrich Pref. BH 8/101,051,99659,000 315,20021,169
KION Group BH 8/102,212,046183,286 553,000101,934
Koenig & Bauer BH 8/10202,14823,441 46,5269,297
Komax BH 1/1022,777  2,88042
Kone 4/101,953,720126,800 239,80039,000
Krones BH 6/10422,15726,735 202,3661,660
Landis+Gyr Group AG BH 4/1046,38013,107 90,5283,000
Legrand 9/101,688,400118,000 792,00061,000
Metso Corporation 7/101,645,000127,206 381,00077,455
Nel 6/1052,2001,624   
Nexans 3/104,226,392224,274 1,766,97370,736
Nordex SE 7/10583,96727,665 133,50026,051
NORMA Group BH 8/10455,5154,879 163,68012,754
OC Oerlikon BH 1/101,403,280146,300 706,40020,400
Ocado Group PLC 4/108,526118,299   
Prysmian 3/109,971,915665,104 7,761,474234,406
Quadient 10/1060,7079,299 20,7701,127
RATIONAL BH 1/1049,2552,299 22,0881,811
Rieter BH 6/10448,00050,000 287,00012,750
Rosenbauer BH 1/10214,93811,862 80,9313,660
Sandvik 9/103,745,000303,000 4,040,000421,765
Schindler 6/102,467,083149,681 651,10046,147
Schneider Electric 9/104,324,594229,347 1,921,569131,402
Schweiter Technologies BH 1/101,513,638103,058  19,433
Semperit BH 1/105,662,998422,536 9,900,00024,890
SFS Group BH 1/10 112,441   
Siemens 9/109,802,000582,000 12,900,000257,000
Siemens Energy 8/105,797,000215,000 6,910,000139,000
Sulzer BH 1/10878,10981,339 987,57619,546
VAT Group BH 8/10161,71314,456 114,0814,876
Vestas Wind Systems 9/102,307,600100,000 341,00047,000
Wärtsilä 6/101,171,00077,334 13,897,00013,043

Social score
Company (Sector)
4.3 (6.6)
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 Trend3/10 20%
Average wage trend9/10 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 score4.2/10 100%
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
      
Siemens Energy 8.48.19.094,940
Interroll BH 8.07.010.02,275
KION Group BH 7.97.97.941,800
Schneider Electric 7.96.810.0165,602
Siemens 7.87.19.3317,000
ANDRITZ BH 7.76.610.029,430
NORMA Group BH 7.67.18.76,135
Rosenbauer BH 7.67.18.64,400
Krones BH 7.56.89.018,550
Dürr BH 7.57.18.420,825
ABB 7.46.49.7106,154
FLSmidth & Co 7.47.57.311,500
RATIONAL BH 7.47.37.72,590
GEA Group 7.36.98.318,310
Bilfinger 7.37.07.928,687
IMI 7.26.19.711,267
Koenig & Bauer BH 7.27.66.45,540
Schindler 7.25.810.071,405
Rieter BH 7.25.810.05,094
Prysmian 7.16.39.030,944
Quadient 7.16.29.04,998
Jungheinrich Pref. BH 7.16.77.919,700
Nel 7.17.26.9835
Aalberts 7.15.610.015,500
Metso Corporation 7.06.77.615,550
Alfa Laval 7.06.48.219,673
Georg Fischer BH 6.98.04.815,868
Jenoptik BH 6.96.97.14,678
Legrand 6.95.410.039,077
Heidelberger Druck BH 6.97.06.89,450
Atlas Copco 6.86.08.648,755
Ocado Group PLC 6.87.55.421,829
Bossard BH 6.87.06.42,830
OC Oerlikon BH 6.65.68.612,963
VAT Group BH 6.54.810.02,897
Elecnor 6.57.05.523,709
Nordex SE 6.56.17.39,340
Kone 6.45.68.262,646
Nexans 6.34.79.727,997
Wärtsilä 6.35.87.517,749
Alstom 6.36.85.283,743
Bucher Industries BH 6.26.26.114,473
Bekaert 6.15.77.127,795
Datwyler BH 6.05.27.68,885
Vestas Wind Systems 5.93.910.029,942
Komax BH 5.86.54.53,631
Burckhardt Compression BH 5.75.75.72,718
Sandvik 5.65.16.644,049
AutoStore 5.64.47.91,089
Danieli & Co 5.36.03.99,400
HUBER+SUHNER BH 5.24.17.64,929
SFS Group BH 5.17.60.013,683
Sulzer BH 5.06.32.513,192
Schweiter Technologies BH 4.96.61.70.00
ITM Power 4.42.87.6444
Landis+Gyr Group AG BH 4.21.59.30.00
Semperit BH 2.63.90.06,659

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.