€40.9m market cap

€2.19 last close

Orège is a clean-tech company founded in 2006 and listed on Euronext in 2013. It has developed an innovative, patented technology (SLG) to significantly reduce sludge treatment costs and improve environmental sustainability of the treatment process.

Investment summary

Orège has developed a proprietary technology that reduces sludge treatment costs for clients by up to 80% and implies average payback periods of less than three years. In January 2019 Orège announced that it had signed a six-year lease agreement for three SLG solutions with the City of Orlando, US, for a total of over $1.3m. We believe the contract is significant for FY19 results as the revenue contribution of around $1m corresponds to 14% of our €6.3m revenue estimate, which implies 143% y-o-y growth. The potential announcement of new contract wins, capital raise and the FY results are the next catalysts.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 0.7 (15.0) (17.9) (95.0) N/A N/A
2017A 0.7 (10.1) (13.5) (72.4) N/A N/A
2018E 2.6 (7.9) (11.2) (60.0) N/A N/A
2019E 6.3 (6.1) (10.0) (53.4) N/A N/A
Last updated on 19/03/2019
Industry outlook

Orège’s SLG product offers a technological innovation to a market that is characterised by well-established and consolidated technologies. The size of the market where Orège operates is significant: according to a study by Frost&Sullivan, the market for the business areas where Orège operates generate $9.5bn revenues annually (excluding revenues from services associated with the equipment sale, which we estimate are equivalent to 50–100% of the equipment business). According to Global Water and Intelligence, the growth rate of the global wastewater market is 5–6% a year.

Last updated on 19/03/2019
Share price graph
Balance sheet
Forecast net debt (€m) 44
Forecast gearing ratio (%) 268
Price performance
Actual 14.4 (18.9) (35.6)
Relative* 8.9 (28.4) (37.2)
52-week high/low €3.7/€1.9
*% relative to local index
Key management
Pascal Gendrot CEO
George Gonsalves CFO