Veolia Environnement (VIE) AI Stock Analysis

• Market Cap: €23.68B
• Dividend Yield: 4.77%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.82
• Revenue Growth: -0.31%
• EPS Growth: 1.28%
• Country: FR
• Employees: 202,332
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.58
• Shares Outstanding: 741,723,450
• 10 Day Avg. Volume: 1,918,759
• 30 Day Avg. Volume: 1,563,847
• PEG Ratio: 2.52
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 15.08
• 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: €38.50
• Price Target Upside: 17.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.41
• Revenue Forecast (FY): €47.39B

• Rating: 61 Neutral
• Price Target: €35.00 ▲(6.94% Upside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is held back mainly by balance-sheet risk (high leverage and weaker equity) and some volatility/inconsistency in reported financial metrics, despite resilient operating and free cash flow. Technicals are moderately supportive with price above key longer-term averages and positive MACD, and valuation is helped by a solid dividend yield with a mid-range P/E.

Positive Factors

Essential, diversified services

Veolia’s core businesses—water, waste and energy services—are essential to municipalities and industry, creating durable, contract-driven demand. Diversified service lines reduce single-market exposure and support recurring revenues that remain relevant over multi-year planning horizons.

Consistent operating cash generation

Sustained positive operating cash flow provides resilience and financial flexibility: it supports capex, dividend payments and M&A without sole dependence on capital markets. Over 2-6 months this underpins the business' ability to fund operations and strategic investments.

Strategic inorganic growth (Clean Earth acquisition)

Acquiring Clean Earth expands Veolia's waste-management footprint and recycling capabilities, enhancing scale and cross-selling in North America. A material bolt-on like this strengthens long-term market position and creates potential synergies that persist beyond short-term cycles.

Negative Factors

Elevated leverage and weakening equity

High and rising debt with a declining equity base increases financial risk and limits strategic optionality. Over the coming months higher leverage raises refinancing and interest-rate exposure, constraining ability to invest, pursue M&A, or withstand macro shocks.

Revenue volatility and recent decline

Significant variability in top-line growth and a sharp 2025 drop reduce revenue visibility and make forecasting cash flows harder. For a contract-focused services firm, such volatility may reflect timing, disposals or execution risk and weakens near-term predictability of earnings.

Choppy free cash flow / weak conversion

Variable free cash flow and modest conversion of earnings to FCF limit capacity to deleverage or increase discretionary investment. Persistent choppiness reduces margin of safety and can amplify funding stress if margins reverse or capex requirements rise.

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 generates revenue through multiple key streams, primarily by providing water and wastewater services, waste management solutions, and energy services. The company charges municipalities and industries for water supply and treatment services, which constitutes a significant portion of its income. Additionally, Veolia earns from waste management operations, including collection, recycling, and disposal services, often under long-term contracts with local governments and businesses. Another revenue stream comes from energy services, where Veolia offers solutions for energy efficiency and recovery. The company also benefits from strategic partnerships with public authorities and private companies, which often lead to long-term contracts, providing a stable and recurring revenue source. Moreover, Veolia's commitment to innovation and sustainability enhances its competitive edge and opens up new business opportunities in the growing market for environmental services.

Veolia Environnement Financial Statement Overview

Summary

Cash generation is consistently positive with steady operating cash flow and positive free cash flow, and profitability has improved versus earlier years. Offsetting this, the balance sheet shows elevated leverage with worsening equity in 2025, and reported growth/profitability metrics appear volatile/inconsistent, reducing confidence in earnings quality.

Income Statement

Revenue has expanded materially since 2020, but the latest year shows slight decline versus 2024 and a very large negative growth figure in 2025, indicating volatility and/or reporting noise. Profitability has improved versus earlier years (net margin rising from ~0.3% in 2020 to ~2.7% in 2025), and operating margin has generally trended higher over time. However, margins remain modest for the scale of the business, and the 2025 EBITDA level appears inconsistent with prior years (flat to EBIT), which reduces confidence in the quality/consistency of earnings.

Balance Sheet

Leverage looks elevated: total debt is large relative to equity across the period, with debt-to-equity ranging from ~1.1x to above 6x historically, and 2025 shows debt rising sharply while equity declines versus 2024. Total assets are stable-to-slightly lower versus 2022–2024, but the higher debt load and weaker equity base increase financial risk. Return on equity has been positive in recent years (where provided) but not strong enough to fully offset the leverage-driven balance-sheet pressure.

Cash Flow

Operating cash flow is consistently positive and sizable (roughly €2.7B–€5.0B from 2020–2025), supporting business resilience. Free cash flow is also consistently positive, but it is somewhat choppy—down in 2022, up in 2023–2024, then down in 2025—suggesting variability in capital spending and/or working capital. Free cash flow covers only a moderate portion of net income (about 0.32–0.45x), implying that accounting earnings are not fully converting into discretionary cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.40B	44.69B	45.35B	42.89B	28.51B
Gross Profit	7.82B	7.71B	7.45B	7.11B	4.58B
EBITDA	6.58B	5.93B	5.53B	5.00B	3.23B
Net Income	1.22B	1.10B	937.00M	715.80M	404.30M
Balance Sheet
Total Assets	70.67B	72.96B	72.57B	73.30B	53.08B
Cash, Cash Equivalents and Short-Term Investments	8.02B	11.76B	10.79B	10.86B	11.96B
Total Debt	33.35B	19.96B	31.98B	21.88B	12.97B
Total Liabilities	61.24B	57.65B	57.86B	58.44B	40.31B
Stockholders Equity	7.02B	12.91B	8.68B	3.57B	11.52B
Cash Flow
Free Cash Flow	1.46B	2.07B	1.86B	1.36B	1.42B
Operating Cash Flow	4.52B	5.04B	5.00B	4.15B	3.15B
Investing Cash Flow	-3.40B	-2.12B	-2.12B	4.52B	-850.60M
Financing Cash Flow	-2.62B	-1.86B	-3.14B	-10.17B	2.29B

Veolia Environnement Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 32.73 is below the 20-day moving average (MA) of 33.91, above the 50-day MA of 31.83, and above the 200-day MA of 30.10, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 11.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:VIE.

Veolia Environnement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBG	64 Neutral	€1.32B	6.86	11.12%	1.90%	-7.47%	63.02%
AURE	64 Neutral	€51.17M	-28.39	―	2.59%	-11.23%	43.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SCHP	63 Neutral	€517.95M	12.27	12.51%	1.69%	14.77%	33.13%
VIE	61 Neutral	€23.68B	9.74	15.69%	4.77%	-0.31%	1.28%
ALTUV	50 Neutral	€17.73M	4.82	―	―	-7.99%	―