Veolia Environnement S.A. (VEOEY)
OTHER OTC:VEOEY
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Veolia Environnement
(OTC:VEOEY)
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Rating:62Neutral
Price Target:
$22.00
▲(27.24% Upside)
Action:Reiterated
Date:05/06/26
The score is held back mainly by financial risks—especially the sharp increase in leverage and volatile free cash flow—despite improving profitability. Offsetting factors include constructive technical trends, an attractive P/E and dividend yield, and a positive earnings call with reaffirmed 2026 guidance and better near-term cash generation.
Positive Factors
Diversified, contract-based model
Veolia’s diversified multi-local model and high indexation across water, waste and energy secures recurring, contract-linked revenues. That structural mix and local footprint provide predictable cash flows, pass-through pricing and resilience to regional cycles over the medium term.
Negative Factors
Sharp increase in leverage
Debt-to-equity jumping to ~4.7x materially increases balance-sheet risk. Elevated leverage reduces financial flexibility for capex, M&A or dividends, heightens refinancing and covenant exposure, and makes performance more sensitive to cash-flow volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified, contract-based model
Veolia’s diversified multi-local model and high indexation across water, waste and energy secures recurring, contract-linked revenues. That structural mix and local footprint provide predictable cash flows, pass-through pricing and resilience to regional cycles over the medium term.
Read all positive factors
Veolia Environnement (VEOEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.64B
Dividend Yield5.25%
Average Volume (3M)91.99K
Price to Earnings (P/E)20.9
Beta (1Y)0.30
Revenue Growth3.73%
EPS Growth14.01%
CountryUS
Employees202,332
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)1.29
Shares Outstanding1,484,993,300
10 Day Avg. Volume14,211
30 Day Avg. Volume91,994
Financial Highlights & Ratios
PEG Ratio-0.39
Price to Book (P/B)3.12
Price to Sales (P/S)0.51
P/FCF Ratio15.61
Enterprise Value/Market Cap1.71
Enterprise Value/Revenue1.15
Enterprise Value/Gross Profit6.49
Enterprise Value/Ebitda8.03
Forecast
1Y Price Target
$23.00Price Target Upside33.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.39
Revenue Forecast (FY)$54.09B
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, treatm...
How the Company Makes Money
Veolia makes money primarily by delivering contracted environmental services to public-sector and industrial customers across three main businesses: (1) Water: Revenue is generated from operating and maintaining water and wastewater facilities and...
Veolia Environnement Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone: management reported resilient organic revenue (+2.1%) and solid EBITDA growth (+5.1%) with margin expansion (+73 bps), improved free cash flow (+EUR 144m), clear M&A progress (Clean Earth cleared and on-track) and active portfolio management and efficiency gains (EUR 96m in Q1). The main negatives were temporary and situational — weather-related volume disruptions, Middle East-driven project-signing delays in Water Technology, and translation/ForEx headwinds (EUR 33m EBITDA impact). Management reiterated full-year guidance and emphasized structural strengths (diversified multi-local model, high indexation, strong liquidity and targeted innovation), indicating that positives materially outweigh the identified headwinds.Positive Updates
Strong Q1 Financial Performance
Revenue of EUR 11,427 million (EUR 11.4bn), up 2.1% organic (constant scope & FX, excluding energy prices). EBITDA EUR 1,766 million, up 5.1% organic (5.8% including tuck-ins). EBITDA margin expanded by 73 bps to 15.5%. Current EBIT EUR 971 million, up 7.2% organic.
Negative Updates
Middle East Geopolitical Impact — Project Delays
Middle East crisis led to delays in signing Water Technology projects (timing/booking & milestone delays). Management expects some of these project-signing delays to continue into Q2; projects are ~30% of activity and are more volatile by nature.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Financial Performance
Revenue of EUR 11,427 million (EUR 11.4bn), up 2.1% organic (constant scope & FX, excluding energy prices). EBITDA EUR 1,766 million, up 5.1% organic (5.8% including tuck-ins). EBITDA margin expanded by 73 bps to 15.5%. Current EBIT EUR 971 million, up 7.2% organic.
Read all positive updates
Company Guidance
Management fully confirmed 2026 guidance and the GreenUp trajectory: organic EBITDA to grow 5–6% and current net income to rise ~8% at constant FX and before PPA (both figures exclude Clean Earth), with Clean Earth assumed to close mid‑2026 and be accretive to current net income from 2027 (before PPA) and after PPA from 2028; leverage is expected to be ≈3x (equal or slightly above) including Clean Earth and the dividend will grow in line with the current year. They reiterated disciplined cash generation and spending—Q1 net free cash flow improved by €144m, Q1 CapEx was €860m (vs >€1bn last year), net financial debt stood at €20.8bn, net group liquidity €6.7bn and 85% of debt is fixed—supporting the guidance while noting a Q1 FX translation headwind of ~‑€33m on EBITDA. Management also flagged progress on transformation metrics (Water Tech synergies €30m of €90m planned, €96m efficiency gains in Q1, €8.5bn of assets targeted for rotation over four years and €2bn of non‑strategic divestitures planned in the two years after Clean Earth).Veolia Environnement Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
38
Negative
Cash Flow
47
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 42.64B | 44.69B | 45.35B | 42.89B | 28.51B |
| Gross Profit | 7.51B | 7.77B | 7.50B | 7.11B | 4.58B |
| EBITDA | 6.32B | 6.02B | 5.86B | 5.14B | 3.44B |
| Net Income | 1.17B | 1.10B | 937.00M | 716.00M | 404.30M |
Balance Sheet | |||||
| Total Assets | 70.64B | 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 | 33.33B | 19.96B | 20.46B | 28.58B | 21.04B |
| Total Liabilities | 61.21B | 57.65B | 57.86B | 61.93B | 42.77B |
| Stockholders Equity | 7.02B | 12.91B | 12.31B | 12.26B | 11.52B |
Cash Flow | |||||
| Free Cash Flow | 1.40B | 5.04B | 1.86B | 855.50M | 1.28B |
| Operating Cash Flow | 4.34B | 5.04B | 5.00B | 3.64B | 3.01B |
| Investing Cash Flow | -3.27B | -2.12B | -2.12B | 4.52B | -850.60M |
| Financing Cash Flow | -2.51B | -1.86B | -3.14B | -10.17B | 2.29B |
Veolia Environnement Technical Analysis
Positive
17.29
Price Trends
19.69
Positive
19.05
Positive
17.82
Positive
Market Momentum
0.08
Positive
52.60
Neutral
67.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEOEY, the sentiment is Positive. The current price of 17.29 is below the 20-day moving average (MA) of 20.26, below the 50-day MA of 19.69, and below the 200-day MA of 17.82, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.60 is Neutral, neither overbought nor oversold. The STOCH value of 67.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VEOEY.
Veolia Environnement Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $61.67B | 28.56 | 18.12% | 1.11% | 3.19% | 5.11% | |
69 Neutral | $14.85B | 37.53 | 14.37% | ― | 1.90% | 2.13% | |
67 Neutral | $84.92B | 30.52 | 28.85% | 1.50% | 10.87% | 4.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $29.64B | 20.94 | 13.90% | 5.25% | 3.73% | 14.01% | |
58 Neutral | $5.23B | 731.09 | 0.46% | ― | 14.92% | -48.77% |
* Industrials Sector Average
VEOEY
Veolia Environnement
20.26
3.25
19.12%
CWST
Casella Waste
82.17
-34.81
-29.76%
CLH
Clean Harbors
281.03
55.26
24.48%
RSG
Republic Services
200.44
-54.83
-21.48%
WM
Waste Management
211.46
-27.03
-11.33%
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.