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1. Company Snapshot

1.a. Company Description

Waga Energy SA designs, builds, and operates landfill gas recovery, upgrading, and grid-injection projects.The company develops WAGABOX, a landfill gas upgrading unit that delivers biomethane that can be injected directly into the gas grid or used as fuel for vehicles.The company was founded in 2015 and is based in Meylan, France.

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1.b. Last Insights on WAGA

Waga Energy Société anonyme's recent performance was hindered by the shift in focus away from renewables by major players like BP, which may impact the demand for renewable natural gas (RNG) projects. Despite strong results from RNG companies at the end of the year, this development could potentially dampen the growth prospects of Waga Energy.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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EQT could acquire majority stake in landfill RNG company Waga Energy

Jun -06

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EQT Buys Majority Stake in Waga Energy for $331 Million Ahead of Potential Takeover

Jun -06

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Waste companies report RNG progress; plus news from Aemetis, Waga and more

Mar -04

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Rockingham County Selects Waga Energy To Produce RNG at the Rockingham County Landfill

May -14

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Waga Energy and Steuben County Commence RNG Production at the Bath Landfill in New York

Mar -18

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Waga Energy Partners with Scott County to Produce RNG in Davenport, Iowa

Jul -31

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Waga Energy and Casella Will Produce RNG at Three Landfills in the US

Jul -10

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Casella Waste Systems, Inc. and Waga Energy Sign Agreement to Develop Renewable Natural Gas Capacity at Select Landfills

Jul -10

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.90%)

6. Segments

Biomethane Gas and Purification Services

Expected Growth: 10.95%

Waga Energy's biomethane gas and purification services exhibit 10.95% growth driven by increasing demand for renewable energy, government incentives for biogas production, and rising adoption in transportation and industrial applications. Additionally, Waga Energy's innovative membrane-based purification technology and strategic partnerships with waste management companies contribute to its growth momentum.

Equipment

Expected Growth: 10.77%

Waga Energy's 10.77% growth is driven by increasing adoption of renewable energy, government incentives for biogas production, and rising demand for waste management solutions. Additionally, the company's innovative equipment for landfill gas upgrading and its expanding global presence contribute to its rapid growth.

Operating & Maintenance and Others

Expected Growth: 10.95%

Waga Energy's 10.95% growth in Operating & Maintenance and Others segments is driven by increasing adoption of biogas solutions, expansion into new markets, and strategic partnerships. Additionally, investments in digitalization and process optimization have improved operational efficiency, reducing costs and enhancing profitability.

Subsidies

Expected Growth: 9.98%

Waga Energy Société anonyme's 9.98% growth is driven by increasing adoption of renewable energy sources, government incentives for biogas production, and strategic partnerships to develop waste-to-energy projects. Additionally, rising energy demand and declining costs of biogas production contribute to the company's growth momentum.

Research Tax Credit

Expected Growth: 14.07%

Waga Energy Société anonyme's 14.07% growth in Research Tax Credit is driven by increasing investments in renewable energy projects, favorable government policies, and rising demand for clean energy solutions. Additionally, the company's focus on innovation and R&D has led to improved efficiency and reduced costs, further contributing to the growth.

7. Detailed Products

Renewable Natural Gas (RNG)

Waga Energy produces Renewable Natural Gas (RNG) from organic waste, offering a carbon-neutral alternative to fossil fuels for transportation, industrial, and residential uses.

Biogas Upgrading

Waga Energy's biogas upgrading technology converts raw biogas from landfills, agricultural waste, and wastewater treatment plants into high-quality RNG.

Landfill Gas Management

Waga Energy designs, builds, and operates landfill gas management systems to capture and utilize landfill gas, reducing greenhouse gas emissions and odors.

Wastewater Treatment Plant (WWTP) Biogas Management

Waga Energy's WWTP biogas management solutions optimize biogas production and utilization from wastewater treatment plants, reducing energy costs and emissions.

8. Waga Energy Société anonyme's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Waga Energy Société anonyme is medium, as there are alternative energy sources available, but they are not yet widely adopted.

Bargaining Power Of Customers

The bargaining power of customers for Waga Energy Société anonyme is low, as the company has a strong brand presence and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Waga Energy Société anonyme is medium, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants for Waga Energy Société anonyme is high, as the energy industry is rapidly evolving and new companies are emerging with innovative technologies.

Intensity Of Rivalry

The intensity of rivalry for Waga Energy Société anonyme is high, as the energy industry is highly competitive and companies are constantly competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.15%
Debt Cost 3.95%
Equity Weight 61.85%
Equity Cost 5.95%
WACC 5.19%
Leverage 61.68%

11. Quality Control: Waga Energy Société anonyme passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ITM Power

A-Score: 4.0/10

Value: 6.8

Growth: 5.8

Quality: 2.7

Yield: 0.0

Momentum: 8.5

Volatility: 0.0

1-Year Total Return ->

Stock-Card
Koenig & Bauer

A-Score: 3.7/10

Value: 6.2

Growth: 2.7

Quality: 1.4

Yield: 0.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

Stock-Card
Waga Energy

A-Score: 3.7/10

Value: 6.4

Growth: 3.6

Quality: 3.2

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

Stock-Card
LPKF Laser & Electronics

A-Score: 3.0/10

Value: 6.4

Growth: 2.7

Quality: 3.3

Yield: 0.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Nel

A-Score: 2.9/10

Value: 8.0

Growth: 5.6

Quality: 3.1

Yield: 0.0

Momentum: 0.5

Volatility: 0.3

1-Year Total Return ->

Stock-Card
Kornit Digital

A-Score: 2.6/10

Value: 6.7

Growth: 3.2

Quality: 3.9

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.4$

Current Price

22.4$

Potential

-0.00%

Expected Cash-Flows