Bureau Veritas (BVI) AI Stock Analysis

• Market Cap: €13.08B
• Dividend Yield: 3.32%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.87
• Revenue Growth: 7.12%
• EPS Growth: 31.41%
• Country: FR
• Employees: 80,283
• Sector: General
• Sector Strength: N/A
• Industry: Consulting Services
• EPS (TTM): 0.80
• Shares Outstanding: 453,871,520
• 10 Day Avg. Volume: 713,778
• 30 Day Avg. Volume: 1,078,337
• PEG Ratio: 4.33
• Price to Book (P/B): 7.08
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 14.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €33.62
• Price Target Upside: 14.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.57
• Revenue Forecast (FY): €6.77B

• Rating: 73 Outperform
• Price Target: €33.00 ▲(11.94% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

Overall score reflects solid fundamentals and strong cash generation, supported by an upward technical trend. The main offset is higher and rising leverage (and lower equity), while valuation looks reasonable with a supportive dividend yield.

Positive Factors

Strong free cash flow generation

Consistent high free cash flow (~€820M in 2025) and robust operating cash flow (~€967M) provide durable internal funding for dividends, capex, and strategic activity. FCF roughly ~0.85x of net income shows solid earnings-to-cash convertibility supporting financial flexibility over the medium term.

Recurring fee-for-service model and steady revenue

A diversified fee-for-service model with long-term contracts across sectors underpins recurring revenue and reduces client concentration risk. Steady top-line growth (2021–2025) reflects resilient demand and global scale, supporting durable revenue visibility and margin leverage across economic cycles.

Durable profitability and high ROE

Sustained operating margins (~14.1%) and net margins (~8–9%) paired with very strong ROE (~34% in 2025) indicate efficient capital deployment and lasting operating strength. This profile supports long-term shareholder returns and suggests the company can generate excess returns versus its capital base.

Negative Factors

Rising leverage and higher debt levels

Material increase in absolute debt and a jump in debt-to-equity to ~2.01x raise refinancing and interest-rate sensitivity. Elevated leverage reduces financial flexibility, increases fixed obligations, and amplifies earnings volatility if growth slows or rates rise, constraining longer-term strategic optionality.

Declining equity base reduces headroom

A falling equity base magnifies leverage metrics and diminishes the balance sheet's shock absorption capacity. Reduced equity restricts ability to fund large investments or acquisitions without raising external capital, and increases the downside risk to credit standing during economic stress.

Gross margin inconsistency and margin pressure

Volatile gross margins, including an unusually low 2025 reading, suggest possible mix shifts, pricing pressure, or classification changes that undermine confidence in margin trends. Persistent margin inconsistency can erode operating margin predictability and complicate medium-term planning.

Bureau Veritas Business Overview & Revenue Model

Company Description

Bureau Veritas SA provides laboratory testing, inspection, and certification services. It operates through six segments: Marine & Offshore; Agri-Food & Commodities; Industry; Buildings & Infrastructure; Certification; and Consumer Products. The company engages in the inspecting, analyzing, auditing, and certifying the products, assets, and management systems of its customers in relation to regulatory benchmarks or volunteers, as well as issues compliance reports. It also provides laboratory and on-site testing services for manufacturing and process industries; inspection services for products, services, assets, and installations, as well as designed to control quality, verify quantity, and meet regulatory requirements; and certification services for management systems, products, and people. The company serves automotive and transportation, building and infrastructure, chemicals, commodities and agriculture, consumer products and retail, food, marine and offshore, oil and gas, and power and utilities industries, as well as financial services and public sectors. It operates in approximately 140 countries through a network of 1,600 offices and laboratories. Bureau Veritas SA was founded in 1828 and is based in Neuilly-sur-Seine, France.

How the Company Makes Money

Bureau Veritas generates revenue through multiple streams, primarily from its testing, inspection, and certification services, which are billed on a fee-for-service basis. The company earns money by providing compliance and quality assurance services to clients in various industries, charging for both routine inspections and specialized assessments. Key revenue streams include the certification of management systems, product testing, and technical consulting services. Additionally, Bureau Veritas benefits from long-term contracts and partnerships with major corporations and government agencies that require ongoing compliance assessments. The company's global presence allows it to leverage economies of scale and diversify its service offerings, further enhancing its ability to generate consistent revenue.

Bureau Veritas Financial Statement Overview

Summary

Steady revenue growth (2025 up ~3.6% vs. 2024) with solid, durable profitability (net margin ~8–9%; 2025 operating margin ~14.1%) and strong free cash flow (~€820M in 2025). The main constraint is balance-sheet risk from rising leverage (debt-to-equity ~2.01x) and declining equity, plus some inconsistency in reported gross margin.

Income Statement

Revenue has grown steadily from 2021–2025 (2025 revenue up ~3.6% vs. 2024), and profitability is consistently solid, with net margin holding around ~8–9% over the last several years. Operating profitability remains healthy (2025 operating margin ~14.1%), though margins eased modestly versus 2024. A key weakness is volatility/consistency in reported gross margin across years (including an unusually low 2025 gross margin versus prior periods), which raises questions about mix or classification consistency and slightly reduces confidence in trend quality.

Balance Sheet

Returns on equity are strong (2025 ~34%), indicating effective profit generation on the equity base. However, leverage is elevated and has increased recently: total debt rose to ~€3.43B in 2025 from ~€2.87B in 2024, and debt-to-equity moved up to ~2.01x (from ~1.46x). Equity also declined year over year, which, combined with higher debt, increases financial risk and reduces balance-sheet flexibility despite stable total assets.

Cash Flow

Cash generation is a clear strength: free cash flow is high and improving over time (2025 ~€820M; strong multi-year expansion), and free cash flow remains well-supported relative to net income (roughly ~0.85x in 2025). Operating cash flow is also robust (~€967M in 2025). The main drawback is that cash flow coverage versus reported operating profit remains moderate (coverage ratio below 0.5 in recent years), suggesting some ongoing working-capital or cash-conversion drag even though overall free cash flow is healthy.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.47B	6.24B	5.87B	5.65B	4.98B
Gross Profit	992.60M	4.50B	1.76B	1.27B	1.12B
EBITDA	1.21B	1.25B	1.14B	1.11B	1.01B
Net Income	588.00M	569.40M	503.70M	466.70M	420.90M
Balance Sheet
Total Assets	7.06B	7.19B	6.64B	7.12B	6.75B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.22B	1.18B	1.66B	1.42B
Total Debt	3.43B	2.87B	2.54B	3.05B	2.89B
Total Liabilities	5.31B	5.16B	4.65B	5.19B	5.05B
Stockholders Equity	1.71B	1.97B	1.94B	1.86B	1.64B
Cash Flow
Free Cash Flow	819.70M	858.90M	662.10M	652.40M	596.70M
Operating Cash Flow	966.70M	1.00B	819.70M	782.50M	717.70M
Investing Cash Flow	-115.50M	-347.80M	-188.00M	-200.00M	-172.20M
Financing Cash Flow	-634.80M	-610.20M	-1.08B	-359.50M	-733.40M

Bureau Veritas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:BVI, the sentiment is Positive. The current price of 29.48 is above the 20-day moving average (MA) of 27.88, above the 50-day MA of 27.49, and above the 200-day MA of 27.41, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 70.34 is Negative, neither overbought nor oversold. The STOCH value of 96.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:BVI.

Bureau Veritas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVI	73 Outperform	€13.08B	22.29	42.80%	3.32%	7.12%	31.41%
FGR	69 Neutral	€14.10B	13.28	14.39%	3.87%	7.71%	-2.82%
SPIE	66 Neutral	€8.87B	43.44	10.66%	2.14%	10.87%	-10.35%
FR	59 Neutral	€2.88B	15.17	3.67%	3.66%	-4.16%	-48.55%
ATE	57 Neutral	€2.12B	21.01	6.98%	2.08%	-0.23%	-37.70%
ASY	57 Neutral	€659.11M	84.35	2.67%	2.41%	6.72%	-90.75%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%