tiprankstipranks
Trending News
More News >
Veolia Environnement (FR:VIE)
:VIE

Veolia Environnement (VIE) AI Stock Analysis

Compare
52 Followers

Top Page

FR

Veolia Environnement

(LSE:VIE)

Rating:72Outperform
Price Target:
Veolia Environnement's solid financial performance, marked by strong cash flow and improved margins, serves as the cornerstone of its stability and growth potential. The company's fair valuation and attractive dividend yield further bolster its appeal. Technical analysis suggests a stable stock with potential for upward movement. However, high debt levels and lack of recent earnings call data are areas to monitor.
Positive Factors
Financial performance
Veolia reported solid results with a small beat on EBIT and reassuring net financial debt evolution.
Strategic direction
Veolia's financial targets are fully confirmed, reinforcing confidence in the company's strategic direction.
Negative Factors
Growth uncertainty
Growth uncertainty and lack of convincing catalysts could cause shares to lag.
Macro environment
Volatile macro environment makes the balance of risks on Veolia's earnings skewed to the downside.
Valuation
Complex growth profile makes understanding Veolia's valuation difficult.

Veolia Environnement (VIE) vs. iShares MSCI France ETF (EWQ)

Veolia Environnement Business Overview & Revenue Model

Company DescriptionVeolia 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 MoneyVeolia Environnement makes money through a diversified revenue model that includes several key streams. In the water sector, the company generates revenue by supplying water and wastewater services to municipalities and industrial clients, including water treatment, distribution, and recycling services. In the waste management sector, Veolia earns income by providing waste collection, treatment, and recycling services, helping clients manage their waste sustainably. The energy services sector contributes to revenue through energy production, distribution, and optimization services, which include district heating, energy efficiency solutions, and renewable energy projects. Significant partnerships with local governments and industries, long-term contracts, and a focus on innovation and sustainability also contribute to Veolia's earnings, enabling the company to capitalize on the growing demand for environmentally responsible solutions.

Veolia Environnement Financial Statement Overview

Summary
Veolia Environnement shows strong financial health with robust cash flow generation and improved profitability margins. Despite a slight revenue decline, the company enhanced its profit margins and equity position, reducing leverage risks. However, the high debt level remains a critical area to monitor.
Income Statement
78
Positive
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
72
Positive
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
81
Very Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
44.69B45.35B42.89B28.51B26.01B
Gross Profit
7.77B7.50B7.15B4.60B3.89B
EBIT
2.88B2.72B7.92B1.32B919.50M
EBITDA
6.02B5.86B5.00B3.09B2.51B
Net Income Common Stockholders
1.10B937.00M1.08B404.30M88.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.76B10.79B10.86B11.96B6.84B
Total Assets
72.96B72.57B73.30B53.08B45.36B
Total Debt
19.96B31.98B21.88B12.97B12.77B
Net Debt
10.36B23.29B12.86B2.45B6.93B
Total Liabilities
57.65B57.86B58.44B40.31B37.05B
Stockholders Equity
12.91B8.68B3.57B11.52B7.22B
Cash FlowFree Cash Flow
5.04B1.40B1.36B1.42B1.12B
Operating Cash Flow
5.04B5.00B4.15B3.15B2.73B
Investing Cash Flow
-2.12B-2.12B4.52B-850.60M-6.14B
Financing Cash Flow
-1.86B-2.51B-10.17B2.29B3.52B

Veolia Environnement Technical Analysis

Technical Analysis Sentiment
Positive
Last Price30.65
Price Trends
50DMA
30.04
Positive
100DMA
28.85
Positive
200DMA
28.11
Positive
Market Momentum
MACD
0.05
Positive
RSI
56.10
Neutral
STOCH
68.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VIE, the sentiment is Positive. The current price of 30.65 is above the 20-day moving average (MA) of 30.43, above the 50-day MA of 30.04, and above the 200-day MA of 28.11, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.10 is Neutral, neither overbought nor oversold. The STOCH value of 68.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:VIE.

Veolia Environnement Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRVIE
72
Outperform
€22.19B19.9313.14%4.62%-1.45%14.74%
64
Neutral
$8.54B10.404.24%4.63%4.14%-13.05%
€902.19M8.4310.31%2.30%
€734.02M20.5110.11%1.28%
64
Neutral
€47.99M47.84
-0.37%-76.92%
€29.02M651.56
3.26%
FRGPE
€258.51M18.52
1.86%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:VIE
Veolia Environnement
30.65
2.66
9.49%
GB:0K8W
Derichebourg
5.72
1.12
24.35%
GB:0OG6
Seche Environnement
94.90
-1.14
-1.19%
FR:AURE
Aurea SA
5.28
-0.48
-8.33%
FR:ALTUV
Bio-UV Group SA
2.08
0.00
0.00%
FR:GPE
Groupe Pizzorno Environnement SA
67.00
-14.70
-17.99%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.