Veolia Environnement (VIE) AI Stock Analysis

• Market Cap: €20.58B
• Dividend Yield: 4.95%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.80
• Revenue Growth: -0.31%
• EPS Growth: 1.28%
• Country: FR
• Employees: 202,332
• Sector: Utilities
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.51
• Shares Outstanding: 741,723,450
• 10 Day Avg. Volume: 1,507,862
• 30 Day Avg. Volume: 1,538,114
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €35.10
• Price Target Upside: 24.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: €32.00 ▲(13.07% Upside)

Veolia Environnement's strong financial performance, particularly its cash flow generation and improved profitability margins, are the primary strengths supporting the stock score. The technical analysis indicates potential bearish momentum, but the stock's valuation is reasonable with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Financial Performance

Veolia reported solid 1Q25 results with a small beat on EBIT and reassuring net financial debt evolution.

Strategic Acquisition

Acquisition of the remaining 30% stake in Water Technologies & Solutions is expected to generate additional synergies and be EPS accretive from 2026 onwards.

Total Shareholder Return

Veolia shares offer an attractive ~13% TSR, consisting of a combination of ~8% EPS CAGR and ~5% dividend yield.

Negative Factors

Earnings Growth

There is limited room for EPS upgrades for now, making a meaningful short-term share price rebound contingent on a significant and quick re-rating.

Macroeconomic Environment

Volatile macro environment makes the balance of risks on Veolia's earnings skewed to the downside.

Market Position

Growth uncertainty and lack of convincing catalysts could cause shares to lag.

Veolia Environnement Business Overview & Revenue Model

Company Description

Veolia Environnement S.A. designs and provides water, waste, and energy management solutions worldwide. The company is involved in the resource management, production, and delivery of drinking water and industrial process water; collection, treatment, and recycling of wastewater; and design and construction of treatment and network infrastructure. It also provides waste collection, waste material recovery, waste-to-energy, organic waste material recovery, hazardous waste treatment, dismantling and remediation, urban cleaning, and industrial maintenance and cleaning services. In addition, the company engages in the operation and maintenance of heating and cooling networks; development of energy services to reduce the energy consumption and CO2 emissions of buildings; optimization of industrial utilities; and energy use related to processes and industrial buildings, as well as produces electricity from biomass. It offers drinking water to 95 million people. The company was formerly known as Vivendi Environnement and changed its name to Veolia Environnement S.A. in 2003. Veolia Environnement S.A. was founded in 1853 and is based in Aubervilliers, France.

How the Company Makes Money

Veolia Environnement generates revenue through multiple key streams: its Water segment earns money by providing drinking water and wastewater services to municipalities and industrial clients, often under long-term contracts. The Waste segment generates income through collection, treatment, and recycling of waste materials, leveraging both municipal contracts and commercial agreements. Additionally, the Energy segment contributes revenue by offering energy management services, including the production of electricity and heat from waste and renewable sources. Significant partnerships with local governments and private sector companies enhance its service offerings and expand its customer base. Overall, Veolia's diversified portfolio and commitment to sustainability position it well for revenue growth in the evolving environmental services market.

Veolia Environnement Financial Statement Overview

Summary

Veolia Environnement demonstrates strong financial health with robust cash flow generation and improved profitability margins. Despite a slight revenue decline, the company managed to enhance its profit margins and equity position, reducing leverage risks. However, the high debt level remains a critical area to monitor.

Income Statement

Veolia Environnement shows stable revenue generation with a slight decrease in total revenue from 2023 to 2024. The gross profit margin remained robust at 17.4% in 2024, and the net profit margin improved to 2.5%, indicating effective cost management. EBITDA and EBIT margins are healthy at 13.5% and 6.4%, respectively, suggesting operational efficiency. However, the revenue growth rate turned negative in the latest year, signaling potential challenges in expanding market share or pricing power.

Balance Sheet

The balance sheet reflects an improved equity base with stockholders' equity increasing to €12.9 billion in 2024, enhancing the equity ratio to 17.7%. The debt-to-equity ratio decreased significantly to 1.55, indicating better leverage management. Return on equity improved to 8.5%, showcasing increased profitability relative to equity. However, the company still carries a substantial debt load, which could pose risks if not managed carefully.

Cash Flow

Veolia Environnement exhibits strong cash flow generation, with operating cash flow reaching €5.04 billion in 2024, supporting a free cash flow of €5.04 billion, which indicates efficient capital expenditure management. The operating cash flow to net income ratio stands at a robust 4.59, and the free cash flow to net income ratio is impressive at 4.59, highlighting the company’s ability to convert earnings into cash. The free cash flow growth rate is exceptionally high due to capital expenditure adjustments, reflecting substantial cash generation capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.69B	45.35B	42.89B	28.51B	26.01B
Gross Profit	7.77B	7.50B	7.15B	4.60B	3.89B
EBITDA	6.02B	5.86B	5.00B	3.09B	2.51B
Net Income	1.10B	937.00M	1.08B	404.30M	88.80M
Balance Sheet
Total Assets	72.96B	72.57B	73.30B	53.08B	45.36B
Cash, Cash Equivalents and Short-Term Investments	11.76B	10.79B	10.86B	11.96B	6.84B
Total Debt	19.96B	31.98B	21.88B	12.97B	12.77B
Total Liabilities	57.65B	57.86B	58.44B	40.31B	37.05B
Stockholders Equity	12.91B	8.68B	3.57B	11.52B	7.22B
Cash Flow
Free Cash Flow	5.04B	1.40B	1.36B	1.42B	1.12B
Operating Cash Flow	5.04B	5.00B	4.15B	3.15B	2.73B
Investing Cash Flow	-2.12B	-2.12B	4.52B	-850.60M	-6.14B
Financing Cash Flow	-1.86B	-2.51B	-10.17B	2.29B	3.52B

Veolia Environnement Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VIE, the sentiment is Negative. The current price of 28.3 is below the 20-day moving average (MA) of 29.79, below the 50-day MA of 30.12, and below the 200-day MA of 28.62, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 31.14 is Neutral, neither overbought nor oversold. The STOCH value of 10.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:VIE.

Veolia Environnement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$17.59B	18.19	5.33%	3.63%	7.33%	12.21%
VIE	66 Neutral	€20.58B	18.94	15.69%	4.95%	-0.31%	1.28%
0K8W	―	€950.81M	8.91	10.31%	―	―	―
0OG6	―	€740.26M	20.73	10.11%	1.30%	―	―
AURE	57 Neutral	€53.12M	52.25		―	-0.37%	-76.92%
ALTUV	―	€24.36M	541.25		3.26%	―	―
GPE	―	€231.50M	16.59		4.15%	―	―