Veolia Environnement (VIE) AI Stock Analysis

• Market Cap: €22.15B
• Dividend Yield: 4.61%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.79
• Revenue Growth: -1.45%
• EPS Growth: 14.74%
• Country: FR
• Employees: 202,332
• Sector: Utilities
• Sector Strength: 77
• Industry: Waste Management
• EPS (TTM): 0.51
• Shares Outstanding: 740,652,600
• 10 Day Avg. Volume: 1,751,574
• 30 Day Avg. Volume: 2,126,612
• PEG Ratio: 0.12
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.11
• 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: €33.84
• Price Target Upside: 11.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• 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 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 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

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
	EBIT
2.88B	2.72B	7.92B	1.32B	919.50M
	EBITDA
6.02B	5.86B	5.00B	3.09B	2.51B
	Net Income Common Stockholders
1.10B	937.00M	1.08B	404.30M	88.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.76B	10.79B	10.86B	11.96B	6.84B
	Total Assets
72.96B	72.57B	73.30B	53.08B	45.36B
	Total Debt
19.96B	31.98B	21.88B	12.97B	12.77B
	Net Debt
10.36B	23.29B	12.86B	2.45B	6.93B
	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: Positive
• Last Price: 30.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 30.35 is below the 20-day moving average (MA) of 30.41, above the 50-day MA of 30.01, and above the 200-day MA of 28.14, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 59.04 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIE	72 Outperform	€22.15B	19.90	13.14%	4.61%	-1.45%	14.74%
Sector *	64 Neutral	$8.57B	10.35	4.24%	4.64%	4.07%	-13.04%
0K8W		€881.47M	8.24	10.31%	2.36%	―	―
0OG6		€734.02M	20.44	10.11%	1.28%	―	―
AURE	60 Neutral	€47.10M	46.95		―	-0.37%	-76.92%
ALTUV		€26.93M	603.13		3.26%	―	―
GPE		€253.11M	18.14		1.91%	―	―