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Veolia Environnement S.A. (VEOEY)
:VEOEY
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Veolia Environnement
(OTC:VEOEY)
Rating:80Outperform
Price Target:
$20.50
▲(14.53%Upside)
Veolia Environnement (VEOEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.14B
Dividend Yield4.38%
Average Volume (3M)3.73K
Price to Earnings (P/E)21.7
Beta (1Y)0.30
Revenue Growth-1.40%
EPS Growth14.80%
CountryUS
Employees202,332
SectorIndustrials
Sector Strength85
IndustryWaste Management
Share Statistics
EPS (TTM)0.57
Shares Outstanding1,481,589,600
10 Day Avg. Volume11,195
30 Day Avg. Volume3,731
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.95
Price to Sales (P/S)0.00
P/FCF Ratio9.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Veolia Environnement Business Overview & Revenue Model
Company DescriptionVeolia Environnement S.A. (VEOEY) is a global leader in optimized resource management. The company operates across three main sectors: water management, waste management, and energy services. Veolia provides comprehensive solutions that focus on environmental sustainability, including water treatment and distribution, waste recovery and recycling, and energy management services. The company's offerings are designed to help cities and industries manage their environmental impacts and improve resource efficiency.
How the Company Makes MoneyVeolia Environnement generates revenue through its diverse range of services in water, waste, and energy management. In the water sector, the company earns money by providing water treatment solutions, wastewater management, and distribution services for municipalities and industries. The waste management segment contributes to revenue through waste collection, recycling, and recovery operations, where Veolia transforms waste into valuable resources. The energy services sector includes energy efficiency solutions, heating and cooling network management, and renewable energy production, enabling clients to optimize energy use and reduce carbon footprints. Veolia's earnings are bolstered by long-term contracts with municipalities and industrial clients, strategic partnerships, and continuous innovation in sustainable practices.
Veolia Environnement Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Veolia's Q1 2025 earnings call reflects a positive outlook with strong financial performance, strategic acquisitions, and growth in key segments. While there are temporary challenges in specific areas, the overall sentiment is optimistic, supported by improved leverage ratios and strategic investments.Q1-2025 Updates
Positive Updates
Strong Q1 2025 Results
Veolia's Q1 2025 results are strong, with sales reaching €11.5 billion, up 3.9% excluding energy prices. EBITDA increased by 5.5% on a like-for-like basis to €1.695 billion, showing a margin improvement of 60 basis points. Current EBIT was up 8.4% to €915 million.
Strategic Acquisition of CDPQ Stake
Veolia acquired a 30% minority stake of CDPQ in its Water Technology business, achieving full ownership. This strategic move is expected to deliver €90 million of additional synergies.
Improved Leverage Ratio
Net financial debt decreased to €18.8 billion, and the leverage ratio improved from 2.88 times last year to 2.75 times.
Growth in Key Segments
Hazardous Waste revenue increased by 5.6% in Europe and 8.5% in the US. Strong growth was also noted in Bioenergy Flexibility Energy Efficiency, with revenue up 16.7% excluding energy prices.
Negative Updates
Temporary Stability in Water Technologies Revenue
Water Technologies revenue was stable in Q1 2025 due to a high comparison basis in Q1 2024 and the timing of contract deliveries.
Exposure to Macro Uncertainties
Although Veolia is mostly macro immune, about 15% of its revenue is exposed to macroeconomic factors, particularly in C&I Waste.
Company Guidance
During the Veolia Q1 2025 conference call, the company confirmed its guidance for the year, showcasing strong financial performance despite challenging macroeconomic conditions. Key metrics highlighted included a 3.9% increase in sales to €11.5 billion, excluding energy prices; a 5.5% like-for-like EBITDA increase to €1.695 billion; and a current EBIT rise of 8.4% to €915 million. The company's leverage ratio improved from 2.88 times last year to 2.75 times, with net financial debt down to €18.8 billion. Veolia also announced the acquisition of CDPQ's 30% stake in its Water Technology business, aiming for €90 million in synergies by 2027, with the transaction priced at an EV/EBITDA multiple of 11 times post-synergies. The acquisition aligns with their GreenUp strategic plan and supports their 2027 guidance of 10% average annual net income growth and a ROCE of over 9%.Veolia Environnement Financial Statement Overview
Summary
Veolia Environnement exhibits strong financial health with robust revenue growth, improved profitability, and solid cash flow generation. The company's efficient use of equity and stable capital structure position it well for future growth, despite moderate leverage and potential interest rate risks.Income Statement
Veolia Environnement demonstrates strong revenue growth, with a significant increase from 2020 to 2024. The company shows a healthy gross profit margin of approximately 17.4% in 2024, indicating efficient cost management. Net profit margin improved over the years, reaching 2.5% in 2024, reflecting enhanced profitability. EBIT and EBITDA margins also indicate stable operating performance, contributing to overall financial health.85
Very Positive
Balance Sheet
The balance sheet shows a reasonable debt-to-equity ratio of 1.55 in 2024, suggesting moderate leverage. Return on equity is strong at 8.5%, indicating efficient use of equity. The equity ratio stands at 17.7%, highlighting a stable capital structure, though the company relies significantly on debt financing, which could pose risks if interest rates rise.78
Positive
Cash Flow
Veolia's cash flow statement reveals robust operating cash flow, consistently covering net income, with a ratio of 4.59 in 2024. Free cash flow has shown substantial growth from previous years, reflecting improved cash generation capabilities. The positive cash flow metrics indicate strong liquidity and the ability to invest in growth opportunities.82
Very Positive
| 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 | 7.11B | 4.58B | 3.89B |
| EBITDA | 6.02B | 5.86B | 5.34B | 3.44B | 2.51B |
| Net Income | 1.10B | 937.00M | 716.00M | 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 | 9.20B | 10.65B | 6.84B |
| Total Debt | 19.96B | 20.46B | 32.08B | 23.50B | 21.94B |
| Total Liabilities | 57.65B | 57.86B | 61.93B | 42.77B | 37.03B |
| Stockholders Equity | 12.91B | 12.31B | 8.76B | 9.06B | 7.24B |
Cash Flow | |||||
| Free Cash Flow | 5.04B | 1.40B | 855.50M | 1.28B | 786.90M |
| Operating Cash Flow | 5.04B | 5.00B | 3.64B | 3.01B | 2.40B |
| Investing Cash Flow | -2.12B | -2.12B | 4.39B | -1.07B | -6.22B |
| Financing Cash Flow | -1.86B | -3.14B | -9.53B | 2.65B | 3.92B |
Veolia Environnement Technical Analysis
Positive
17.90
Price Trends
17.42
Positive
16.63
Positive
15.65
Positive
Market Momentum
0.18
Negative
59.30
Neutral
95.66
Negative
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 17.9 is above the 20-day moving average (MA) of 17.51, above the 50-day MA of 17.42, and above the 200-day MA of 15.65, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 95.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VEOEY.
Veolia Environnement Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $26.14B | 21.71 | 13.31% | 4.38% | -1.40% | 14.80% | |
71 Outperform | $14.69B | 18.42 | 11.70% | 0.10% | 0.57% | -5.62% | |
71 Outperform | $14.69B | 18.42 | 11.70% | 0.10% | 0.57% | -5.62% | |
69 Neutral | $12.55B | 32.44 | 16.02% | ― | 8.52% | 4.51% | |
69 Neutral | $12.55B | 32.44 | 16.02% | ― | 8.52% | 4.51% | |
65 Neutral | $10.75B | 15.69 | 5.29% | 1.89% | 3.09% | -27.41% | |
63 Neutral | $12.06B | 30.57 | 7.44% | 3.17% | 3.96% | -17.48% | |
63 Neutral | $12.06B | 30.57 | 7.44% | 3.17% | 3.96% | -17.48% | |
62 Neutral | $7.19B | 516.64 | 1.00% | ― | 21.63% | -30.27% | |
62 Neutral | $7.19B | 516.64 | 1.00% | ― | 21.63% | -30.27% | |
57 Neutral | $19.27B | 40.15 | 5.63% | 2.11% | 3.26% | 27.77% | |
57 Neutral | $19.27B | 40.15 | 5.63% | 2.11% | 3.26% | 27.77% |
* Industrials Sector Average
Performance Comparison
VEOEY
Veolia Environnement
17.91
2.77
18.30%
CWST
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113.30
13.01
12.97%
CWST
Casella Waste
113.30
13.01
12.97%
CLH
Clean Harbors
234.71
14.47
6.57%
CLH
Clean Harbors
234.71
14.47
6.57%
LUV
Southwest Airlines
33.81
6.97
25.97%
LUV
Southwest Airlines
33.81
6.97
25.97%
TXT
Textron
81.37
-3.67
-4.32%
TXT
Textron
81.37
-3.67
-4.32%
RTO
Rentokil Initial
23.79
-5.93
-19.95%
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.