Veolia Environnement (VEOEY)
OTHER OTC:VEOEY
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Veolia Environnement
(OTC:VEOEY)
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Rating:56Neutral
Price Target:
$20.00
▲(15.67% Upside)
Action:DowngradedDate:03/05/26
The score is held back primarily by financial risk factors—especially the balance-sheet leverage deterioration and volatile free cash flow—despite improving profitability. Offsetting this, the latest earnings call and guidance were positive (strong EBITDA/margin execution and growth targets), valuation is supported by a solid dividend yield, and technicals indicate a modest longer-term uptrend but with currently neutral momentum.
Positive Factors
Margin expansion and ROCE improvement
Sustained margin expansion and a ROCE of 9.4% signal stronger operating leverage and capital efficiency across core services. This supports durable cash generation potential and resilience to revenue cycles by converting incremental revenue into higher profits, improving long-term return profiles.
Negative Factors
Material increase in leverage
A sharp jump in leverage to ~4.7x materially constrains financial flexibility, raises refinancing and covenant risk, and limits capacity for opportunistic investment. Elevated debt makes the firm more sensitive to interest rates and operational setbacks, a persistent structural vulnerability.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and ROCE improvement
Sustained margin expansion and a ROCE of 9.4% signal stronger operating leverage and capital efficiency across core services. This supports durable cash generation potential and resilience to revenue cycles by converting incremental revenue into higher profits, improving long-term return profiles.
Read all positive factors
Veolia Environnement (VEOEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.55B
Dividend Yield5.25%
Average Volume (3M)14.52K
Price to Earnings (P/E)18.7
Beta (1Y)0.27
Revenue Growth0.25%
EPS Growth1.94%
CountryUS
Employees202,332
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)0.34
Shares Outstanding1,461,968,000
10 Day Avg. Volume0
30 Day Avg. Volume14,516
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 Cap1.77
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit6.47
Enterprise Value/Ebitda8.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.38
Revenue Forecast (FY)$54.35B
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 Environnement generates revenue through a diversified model that includes multiple key streams. The primary sources of income are from its water services, waste management, and energy services. The company earns money by providing water tre...
Veolia Environnement Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported a strong set of financial results (EBITDA growth +6.3%, record margin 15.9%, ROCE 9.4%), significant efficiency delivery (EUR 399m) and crystallized strategic M&A (Water Tech buyout, signed Clean Earth) that enhance growth and value creation. Headwinds exist—notably FX translation, one-off litigation and near-term leverage pressure around the Clean Earth close, plus timing-driven project volatility—but these were framed as manageable and temporary. On balance the positive performance, delivery of synergies and clear pipeline of tech-driven growth opportunities outweigh the challenges.Positive Updates
Organic EBITDA Growth Above Guidance
Organic EBITDA grew +6.3% in 2025, outperforming the guidance range of +5% to +6%, driven by strong operating leverage, efficiency programs and booster segment momentum.
Negative Updates
Foreign Exchange Headwinds
Significant negative FX translation impact in 2025 (lower U.S. dollar and Latin American currencies), reducing reported growth; management noted FX remains a volatile translation effect and had a notable negative effect in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Organic EBITDA Growth Above Guidance
Organic EBITDA grew +6.3% in 2025, outperforming the guidance range of +5% to +6%, driven by strong operating leverage, efficiency programs and booster segment momentum.
Read all positive updates
Company Guidance
Veolia's 2026 guidance calls for continued solid organic revenue growth (excluding energy prices), organic EBITDA growth of 5–6% and current net income growth of at least +8% at constant FX (guidance excludes Suez synergies and is before the Clean Earth contribution); management expects to keep leverage ≤3.0x pre‑Clean Earth (equal or slightly above 3.0x including Clean Earth at close, returning to ≤3.0x in 2027), assumes a mid‑2026 close of the $3bn Clean Earth deal (accretive from 2027 ex‑PPA with $120m synergies targeted 2027–2030 and ~$90m integration costs over four years) and will deliver a €2bn disposal program in the two years post‑close; Water Tech synergies of €90m by 2027 (≈€20m already achieved in H2‑25), a renewed annual efficiency target of ≈€350m (€399m delivered in 2025, 23% from digital/AI), dividend growth in line with EPS, and an FX net‑income impact broadly similar to 2025.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
19.22
Positive
18.20
Positive
17.71
Positive
Market Momentum
>-0.01
Negative
56.24
Neutral
99.21
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 17.29 is below the 20-day moving average (MA) of 18.79, below the 50-day MA of 19.22, and below the 200-day MA of 17.71, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 99.21 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.81B | 31.90 | 14.47% | ― | 2.85% | -6.27% | |
74 Outperform | $809.92M | -1,034.44 | -0.17% | ― | 22.77% | 44.73% | |
72 Outperform | $68.05B | 30.90 | 18.00% | 1.11% | 4.33% | 7.59% | |
68 Neutral | $94.10B | 32.67 | 28.99% | 1.50% | 15.88% | -3.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $28.55B | 18.75 | 13.90% | 5.25% | 0.25% | 1.94% | |
54 Neutral | $5.45B | 789.67 | 0.50% | ― | 20.54% | 106.35% |
* Industrials Sector Average
VEOEY
Veolia Environnement
20.22
5.01
32.97%
CWST
Casella Waste
86.71
-24.43
-21.98%
CLH
Clean Harbors
302.58
104.74
52.94%
RSG
Republic Services
216.51
-20.15
-8.52%
WM
Waste Management
231.43
10.36
4.69%
MEG
Montrose Environmental Group
22.55
9.82
77.14%
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.