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Veolia Environnement (VEOEY)
OTHER OTC:VEOEY
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Veolia Environnement
(OTC:VEOEY)
Rating:77Outperform
Price Target:
$19.50
▲(18.11% Upside)
Veolia Environnement (VEOEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.68B
Dividend Yield5.49%
Average Volume (3M)12.74K
Price to Earnings (P/E)20.0
Beta (1Y)0.29
Revenue Growth0.25%
EPS Growth1.94%
CountryUS
Employees202,332
SectorIndustrials
Sector Strength80
IndustryWaste Management
Share Statistics
EPS (TTM)0.58
Shares Outstanding1,483,446,900
10 Day Avg. Volume8,866
30 Day Avg. Volume12,737
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.53
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit7.70
Enterprise Value/Ebitda9.93
Forecast
1Y Price Target
$19.50Price Target Upside18.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Veolia Environnement Business Overview & Revenue Model
Company DescriptionVeolia 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 MoneyVeolia generates revenue through several key streams: its water management segment, which includes the sale of water and wastewater treatment services; its waste management segment, which involves the collection, treatment, and recycling of various waste types; and its energy services segment, which focuses on energy efficiency and recovery solutions. The company typically enters into long-term contracts with municipalities and industrial clients, providing a stable revenue base. Additionally, Veolia often partners with local governments and private entities to secure public service contracts, enhancing its market presence and profitability. Factors contributing to its earnings include a growing demand for sustainable solutions, regulatory pressures on waste and water management, and its commitment to innovation in resource recovery technologies.
Veolia Environnement Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with strategic growth initiatives and resilience in the face of macroeconomic challenges. The acquisition of CDPQ's stake in Water Technologies is expected to unlock significant synergies and drive future growth. Although there were some short-term challenges, such as the temporary stability in Water Technologies revenue and the impact of energy prices, the positive aspects and strategic moves significantly outweigh the negatives.Q1-2025 Updates
Positive Updates
Strong Revenue and Growth
Sales reached €11.5 billion, up 3.9% excluding energy prices. EBITDA increased by 5.5% on a like-for-like basis to €1.695 billion, with 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% stake in its Water Technology business from CDPQ, achieving full ownership. This move is aligned with the GreenUp strategic program and is expected to deliver €90 million additional synergies by 2027.
Resilient Business Model
Veolia's business model demonstrated resilience with no direct tariff exposure and minimal dependency on GDP, supported by long-term contracts and a diversified client base.
Successful Efficiency Gains
Achieved €91 million in efficiency gains in Q1, in line with the annual target of €350 million. Digital gains represent 15% of operational efficiency.
Hazardous Waste Revenue Growth
Hazardous Waste revenue increased by 5.6%, with strong growth in Europe and the US, demonstrating the segment's resilience against macroeconomic conditions.
Negative Updates
Temporary Stability in Water Technologies Revenue
Water Technologies revenue was stable in Q1 due to a high comparison basis and timing of contract deliveries, which is expected to improve in subsequent quarters.
Impact of Energy Prices
Revenue growth was tempered by the impact of lower energy prices, resulting in a 1.5% overall increase when energy is included.
Company Guidance
During Veolia's Q1 2025 conference call, CEO Estelle Brachlianoff and CFO Emmanuelle Menning highlighted the company's solid financial performance and affirmed their guidance for the year. Veolia's sales reached €11.5 billion, growing by 3.9% excluding energy prices, while EBITDA increased by 5.5% on a like-for-like basis to €1.695 billion. Current EBIT rose by 8.4% to €915 million, and net financial debt decreased to €18.8 billion, resulting in a leverage ratio of 2.75 times. The company's strategic acquisition of a 30% minority stake in its Water Technology business at an EV/EBITDA multiple of 11 times post-synergies is expected to deliver €90 million in additional synergies by 2027. Veolia aims for a 10% average annual growth in current net income and an ROCE above 9% by 2027, supported by its GreenUp plan and a continued focus on growth, performance, and capital allocation.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
Negative
16.51
Price Trends
17.53
Negative
17.36
Negative
15.98
Positive
Market Momentum
-0.23
Positive
35.38
Neutral
3.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEOEY, the sentiment is Negative. The current price of 16.51 is below the 20-day moving average (MA) of 17.32, below the 50-day MA of 17.53, and above the 200-day MA of 15.98, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 35.38 is Neutral, neither overbought nor oversold. The STOCH value of 3.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VEOEY.
Veolia Environnement Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.99B | 34.02 | 14.93% | ― | 5.49% | -1.66% | |
77 Outperform | $23.68B | 20.04 | 15.29% | 5.49% | 0.25% | 1.94% | |
73 Outperform | $73.05B | 34.58 | 18.41% | 0.99% | 5.13% | 13.29% | |
70 Outperform | $1.10B | ― | -7.61% | ― | 17.78% | 2.57% | |
69 Neutral | $91.20B | 33.59 | 32.67% | 1.39% | 14.18% | 7.02% | |
64 Neutral | $10.74B | 15.86 | 8.15% | 2.00% | 2.70% | -15.17% | |
58 Neutral | $6.26B | 545.13 | 0.85% | ― | 20.35% | -45.38% |
* Industrials Sector Average
Performance Comparison
VEOEY
Veolia Environnement
16.51
0.49
3.06%
CWST
Casella Waste
98.56
-6.19
-5.91%
CLH
Clean Harbors
242.21
5.70
2.41%
RSG
Republic Services
233.97
30.30
14.88%
WM
Waste Management
226.39
19.93
9.65%
MEG
Montrose Environmental Group
31.06
-0.53
-1.68%
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.