Veolia Environnement (VIE) AI Stock Analysis

• Market Cap: €20.62B
• Dividend Yield: 4.89%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.80
• Revenue Growth: -0.31%
• EPS Growth: 1.28%
• Country: FR
• Employees: 202,332
• Sector: Utilities
• Sector Strength: 65
• Industry: Waste Management
• EPS (TTM): 0.51
• Shares Outstanding: 741,723,450
• 10 Day Avg. Volume: 1,918,759
• 30 Day Avg. Volume: 1,563,847
• PEG Ratio: 1.18
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 3.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €35.40
• Price Target Upside: 23.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: €32.00 ▲(11.42% Upside)

Veolia Environnement's overall stock score reflects its strong financial performance, particularly in cash flow generation and profitability margins. The technical analysis indicates a neutral trend, while the valuation suggests a fair market price with a good dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Generation

Strong cash flow generation supports financial stability and investment capacity, enabling Veolia to fund operations and growth initiatives effectively.

Profitability Margins

Improved profitability margins indicate effective cost management and operational efficiency, enhancing Veolia's ability to sustain earnings.

Leverage Management

Better leverage management reduces financial risk, increasing Veolia's financial flexibility and resilience against economic fluctuations.

Negative Factors

Revenue Decline

A decline in revenue growth may indicate challenges in market expansion or pricing power, potentially impacting future growth prospects.

High Debt Levels

High debt levels can strain cash flow and limit Veolia's ability to invest in growth opportunities, posing long-term financial risks.

Negative Revenue Growth Rate

Negative revenue growth suggests potential challenges in maintaining market share or adapting to competitive pressures, affecting long-term viability.

Veolia Environnement Business Overview & Revenue Model

Company Description

Veolia Environnement (VIE) is a global leader in optimized resource management, specializing in water management, waste management, and energy services. The company operates in three main sectors: Water, Waste, and Energy, providing innovative solutions to enhance environmental sustainability while supporting urban development. Veolia offers a wide range of services including drinking water supply, wastewater treatment, recycling, and waste recovery, as well as energy efficiency and renewable energy solutions.

How the Company Makes Money

Veolia Environnement generates revenue through multiple key streams: its Water segment earns money by providing drinking water and wastewater services to municipalities and industrial clients, often under long-term contracts. The Waste segment generates income through collection, treatment, and recycling of waste materials, leveraging both municipal contracts and commercial agreements. Additionally, the Energy segment contributes revenue by offering energy management services, including the production of electricity and heat from waste and renewable sources. Significant partnerships with local governments and private sector companies enhance its service offerings and expand its customer base. Overall, Veolia's diversified portfolio and commitment to sustainability position it well for revenue growth in the evolving environmental services market.

Veolia Environnement Financial Statement Overview

Summary

Veolia Environnement demonstrates strong financial health with robust cash flow generation and improved profitability margins. Despite a slight revenue decline, the company improved its profit margins and equity position, reducing leverage risks. However, the high debt level remains a critical area to monitor.

Income Statement

Veolia Environnement shows stable revenue generation with a slight decrease in total revenue from 2023 to 2024. The gross profit margin remained robust at 17.4% in 2024, and the net profit margin improved to 2.5%, indicating effective cost management. EBITDA and EBIT margins are healthy at 13.5% and 6.4%, respectively, suggesting operational efficiency. However, the revenue growth rate turned negative in the latest year, signaling potential challenges in expanding market share or pricing power.

Balance Sheet

The balance sheet reflects an improved equity base with stockholders' equity increasing to €12.9 billion in 2024, enhancing the equity ratio to 17.7%. The debt-to-equity ratio decreased significantly to 1.55, indicating better leverage management. Return on equity improved to 8.5%, showcasing increased profitability relative to equity. However, the company still carries a substantial debt load, which could pose risks if not managed carefully.

Cash Flow

Veolia Environnement exhibits strong cash flow generation, with operating cash flow reaching €5.04 billion in 2024, supporting a free cash flow of €5.04 billion, which indicates efficient capital expenditure management. The operating cash flow to net income ratio stands at a robust 4.59, and the free cash flow to net income ratio is impressive at 4.59, highlighting the company’s ability to convert earnings into cash. The free cash flow growth rate is exceptionally high due to capital expenditure adjustments, reflecting substantial cash generation capacity.

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	7.83B	7.71B	7.45B	7.11B	4.58B	3.86B
EBITDA	5.91B	5.93B	5.53B	5.00B	3.23B	2.63B
Net Income	1.10B	1.10B	937.00M	715.80M	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	30.08B	19.96B	31.98B	21.88B	12.97B	12.77B
Total Liabilities	56.25B	57.65B	57.86B	58.44B	40.31B	37.05B
Stockholders Equity	10.49B	12.91B	8.68B	3.57B	11.52B	7.22B
Cash Flow
Free Cash Flow	1.99B	2.07B	1.86B	1.36B	1.42B	1.12B
Operating Cash Flow	4.93B	5.04B	5.00B	4.15B	3.15B	2.73B
Investing Cash Flow	-2.54B	-2.12B	-2.12B	4.52B	-850.60M	-6.14B
Financing Cash Flow	-1.82B	-1.86B	-3.14B	-10.17B	2.29B	3.52B

Veolia Environnement Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VIE, the sentiment is Negative. The current price of 28.72 is below the 20-day moving average (MA) of 29.28, below the 50-day MA of 28.92, and below the 200-day MA of 29.28, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:VIE.

Veolia Environnement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIE	―	€20.62B	18.97	15.69%	4.89%	-0.31%	1.28%
DBG	―	€922.91M	8.65	10.31%	2.24%	1.10%	10.21%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AURE	―	€54.71M	-34.18	―	―	-11.23%	43.27%
SCHP	―	€546.03M	12.50	12.51%	1.72%	14.77%	33.13%
ALTUV	―	€21.82M	24.92	―	―	-7.99%	―