Veolia Environnement (VIE) AI Stock Analysis

• Market Cap: €21.38B
• Dividend Yield: 4.74%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.82
• Revenue Growth: -0.31%
• EPS Growth: 1.28%
• Country: FR
• Employees: 202,332
• Sector: Utilities
• Sector Strength: 88
• Industry: Waste Management
• EPS (TTM): 0.51
• Shares Outstanding: 740,794,800
• 10 Day Avg. Volume: 1,721,540
• 30 Day Avg. Volume: 1,742,476
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €34.26
• Price Target Upside: 15.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: ―

Veolia Environnement's strong financial performance, driven by robust cash flow and profitability margins, is the primary factor contributing to the stock score. While technical indicators show neutral sentiment, the valuation suggests limited upside given the current market expectations. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Acquisition Strategy

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

Financial Performance

Veolia reported solid results with a small beat on EBIT, reinforcing confidence in the company's financial performance.

Strategic Direction

Veolia's 2025 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.

Investment Appeal

Unattractive value proposition relative to defensives, struggling to attract incremental investors.

Macro Environment

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

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 its diverse service offerings across its three core sectors. In the water segment, the company earns money by providing water and wastewater management services, including water distribution, water treatment, and wastewater treatment for municipalities and industrial clients. The waste management segment contributes to revenue by offering waste collection, recycling, and disposal services, as well as converting waste into energy. In the energy services sector, Veolia provides solutions for energy efficiency, district heating, and cooling networks, as well as energy production. The company benefits from long-term contracts with municipalities and industrial clients, ensuring a stable revenue stream. Additionally, Veolia forms strategic partnerships and collaborations to expand its service offerings and enhance its market presence, further contributing to its financial performance.

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
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: 29.54
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 29.54 is below the 20-day moving average (MA) of 30.33, below the 50-day MA of 30.24, and above the 200-day MA of 28.45, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.82 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
VIE	72 Outperform	€21.38B	19.34	15.69%	4.74%	-0.31%	1.28%
Sector *	72 Outperform	€14.17B	47.28	13.35%	4.72%	0.08%	15.66%
0K8W	―	€902.19M	8.54	10.31%	2.22%	―	―
0OG6	―	$801.89M	22.43	10.11%	1.19%	―	―
AURE	57 Neutral	€53.12M	52.96		―	-0.37%	-76.92%
ALTUV	―	€23.79M	545.00		3.26%	―	―
GPE	―	€239.22M	17.14		4.03%	―	―