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Veolia Environnement S.A. (VEOEY)
OTHER OTC:VEOEY
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Veolia Environnement
(OTC:VEOEY)
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Rating:74Outperform
Price Target:
$18.50
▲(8.76% Upside)
Veolia Environnement's strong financial performance and positive earnings call are the most significant factors driving the overall score. The company's robust international growth and strategic M&A activities contribute positively. However, bearish technical indicators and a relatively high P/E ratio slightly offset these strengths.
Positive Factors
International Growth
Strong international growth, especially in North America, Africa, and Latin America, enhances Veolia's market position and revenue diversification, supporting long-term stability and expansion.
EBITDA and Margin Improvement
Improved EBITDA and margins indicate strong operational efficiency and cost management, which are crucial for sustaining profitability and competitive advantage.
Strategic M&A Activities
Strategic acquisitions enhance Veolia's capabilities and market reach, particularly in high-growth segments, driving long-term revenue and EBITDA growth.
Negative Factors
Rising Debt Levels
High debt levels can strain financial flexibility and increase risk, especially if interest rates rise, potentially impacting future investment capacity.
Forex Impact
Forex volatility can adversely affect profitability and financial performance, posing a risk to earnings stability in the face of currency fluctuations.
France Performance Challenges
Challenges in the domestic market, particularly in the solid waste sector, could hinder overall growth and require strategic adjustments to maintain market share.
Veolia Environnement (VEOEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.77B
Dividend Yield5.25%
Average Volume (3M)14.52K
Price to Earnings (P/E)21.0
Beta (1Y)0.21
Revenue Growth0.25%
EPS Growth1.94%
CountryUS
Employees202,332
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)0.29
Shares Outstanding1,483,446,900
10 Day Avg. Volume0
30 Day Avg. Volume14,516
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)0.76
Price to Sales (P/S)0.22
P/FCF Ratio1.94
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit3.25
Enterprise Value/Ebitda4.19
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.29
Revenue Forecast (FY)$53.09B
Veolia Environnement Business Overview & Revenue Model
Company DescriptionVeolia Environnement (VEOEY) is a global leader in optimized resource management, providing innovative solutions in water management, waste management, and energy services. With operations spanning across multiple sectors, Veolia aims to enhance environmental quality and sustainability. The company's core products and services include water treatment and distribution, waste collection and recycling, and energy recovery services, all designed to support cities and industries in their transition to a more sustainable future.
How the Company Makes MoneyVeolia 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 treatment and supply services to municipalities and industries, which involves billing for the consumption of water and the treatment of wastewater. In waste management, Veolia collects, recycles, and disposes of waste materials, charging clients for these services, often under long-term contracts that ensure stable cash flow. Additionally, in the energy sector, the company produces energy from waste and offers energy management solutions, generating revenue from the sale of energy and energy savings. Veolia also engages in partnerships with governments and private entities, which can lead to joint ventures and public-private partnerships, enhancing its capacity to deliver large-scale projects and securing additional funding sources. These various revenue streams, combined with a focus on sustainable practices and innovation, contribute to Veolia's financial performance.
Veolia Environnement Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
Veolia reported a strong 9-month performance with significant international growth and successful M&A activities. Despite some challenges in France and negative Forex impacts, the overall business trends remain positive with a strong forecast for Q4.Q3-2025 Updates
Positive Updates
Strong International Performance
Veolia's international operations, which account for 80% of its revenue, showed strong growth with circa double-digit EBITDA growth, particularly in North America (+6.2%), Africa and Middle East (+10.5%), and Latin America (+9.4%).
EBITDA and Margin Improvement
EBITDA increased by 5.4% on a like-for-like basis, in line with guidance, with a margin improvement of 50 basis points. Current EBIT was up 7.9%.
M&A and Capital Allocation Success
Completed EUR 2.3 billion of acquisitions in Water Technology and Hazardous Waste, enhancing growth outside Europe and leading to a 10% EBITDA increase in these segments.
Guidance Confirmation
Veolia confirmed its guidance for 2025, expecting strong Q4 performance, and announced a share buyback plan to offset employee shareholding program impact.
Negative Updates
Forex Impact
Negative Forex impact on EBITDA at minus EUR 68 million and current EBIT at minus EUR 44 million due to weakening of currencies like the U.S. dollar and Australian dollar.
France Performance Challenges
Low growth in France's solid waste sector, offset by improvements in hazardous waste and water operations.
Company Guidance
In the recent conference call, Veolia provided strong guidance for the fiscal year, confirming expectations for a robust Q4. The company reported revenue of EUR 32 billion for the first nine months of 2025, up by 3.2% excluding energy prices, and a significant EBITDA increase of 5.4% on a like-for-like basis, aligning with their annual guidance of 5% to 6% growth. The EBITDA margin improved by 50 basis points, demonstrating strong operating leverage with a current EBIT increase of 7.9%. Veolia's net financial debt was EUR 19.9 billion, maintaining a trajectory to achieve a leverage ratio below 3x by year-end. Emphasizing its international presence, Veolia noted that 80% of its revenue is generated outside Europe, with high EBITDA margins of 17% in these regions compared to the group average of 15%. The company highlighted strong performance in the Rest of the World segment, with North America growing by 6.2%, driven by a 9% increase in Hazardous Waste, and notable growth in Africa and the Middle East at 10.5%, Latin America at 9.4%, and Asia at 5%. Veolia's strategic focus on its Boosters activities, particularly in Water Technology and Hazardous Waste, contributed to a 10% organic growth in EBITDA for these segments. The company's efficiency plan yielded EUR 295 million in gains, with expectations to achieve EUR 350 million by year-end, underlining the sustainability of its cost management strategy. Despite uncertainties in the economic environment, Veolia reiterated its commitment to delivering a 9% increase in current net income at constant ForEx and a dividend in line with EPS growth.Veolia Environnement Financial Statement Overview
Summary
Veolia Environnement demonstrates strong financial performance with consistent revenue growth, improved profitability, and solid cash flow generation. The company's moderate leverage is balanced by efficient equity use and a stable capital structure, positioning it well for future growth despite 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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.60B | 44.69B | 45.35B | 42.89B | 28.51B | 26.01B |
| Gross Profit | 7.85B | 7.77B | 7.50B | 7.11B | 4.58B | 3.89B |
| EBITDA | 6.10B | 6.02B | 5.86B | 5.14B | 3.44B | 2.51B |
| Net Income | 1.10B | 1.10B | 937.00M | 716.00M | 404.30M | 88.80M |
Balance Sheet | ||||||
| Total Assets | 68.97B | 72.96B | 72.57B | 73.30B | 53.08B | 45.36B |
| Cash, Cash Equivalents and Short-Term Investments | 9.46B | 11.76B | 10.79B | 10.86B | 11.96B | 6.84B |
| Total Debt | 20.59B | 19.96B | 20.46B | 28.58B | 21.04B | 13.40B |
| Total Liabilities | 56.25B | 57.65B | 57.86B | 61.93B | 42.77B | 37.03B |
| Stockholders Equity | 10.49B | 12.91B | 12.31B | 12.26B | 11.52B | 7.24B |
Cash Flow | ||||||
| Free Cash Flow | 4.96B | 5.04B | 1.86B | 855.50M | 1.28B | 786.90M |
| Operating Cash Flow | 4.93B | 5.04B | 5.00B | 3.64B | 3.01B | 2.40B |
| Investing Cash Flow | -2.42B | -2.12B | -2.12B | 4.52B | -850.60M | -6.14B |
| Financing Cash Flow | -2.50B | -1.86B | -3.14B | -10.17B | 2.29B | 3.52B |
Veolia Environnement Technical Analysis
Positive
17.01
Price Trends
16.99
Positive
17.02
Positive
17.12
Positive
Market Momentum
0.10
Negative
55.32
Neutral
70.09
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 17.01 is below the 20-day moving average (MA) of 17.12, above the 50-day MA of 16.99, and below the 200-day MA of 17.12, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 70.09 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.77B | 33.27 | 14.64% | ― | 2.85% | -6.27% | |
76 Outperform | $88.49B | 34.72 | 29.31% | 1.50% | 15.88% | -3.11% | |
74 Outperform | $24.77B | 20.97 | 15.29% | 5.25% | 0.25% | 1.94% | |
72 Outperform | $65.91B | 31.67 | 18.24% | 1.11% | 4.33% | 7.59% | |
69 Neutral | $920.90M | -27.66 | -4.17% | ― | 22.77% | 44.73% | |
69 Neutral | $6.33B | 416.67 | 0.98% | ― | 20.54% | 106.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
VEOEY
Veolia Environnement
17.27
3.69
27.17%
CWST
Casella Waste
99.96
-7.59
-7.06%
CLH
Clean Harbors
239.80
8.47
3.66%
RSG
Republic Services
213.06
11.07
5.48%
WM
Waste Management
220.34
18.33
9.07%
MEG
Montrose Environmental Group
26.11
8.46
47.93%
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.