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Veolia Environnement S.A. (VEOEY)
:VEOEY
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Veolia Environnement
(OTC:VEOEY)
79Outperform
Veolia Environnement (VEOEY) vs. S&P 500 (SPY)
Market Cap
$26.59B
Dividend Yield2.42%
Average Volume (3M)13.66K
Price to Earnings (P/E)22.2
Beta (1Y)0.43
Revenue Growth-1.40%
EPS Growth14.80%
CountryUS
Employees202,332
SectorIndustrials
Sector Strength79
IndustryWaste Management
Share Statistics
EPS (TTM)0.82
Shares Outstanding1,481,305,200
10 Day Avg. Volume0
30 Day Avg. Volume13,665
Financial Highlights & Ratios
PEG Ratio1.50
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
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. 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 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 Financial Statement Overview
Summary
Veolia Environnement shows strong financial performance with consistent revenue growth, improved profitability, and robust cash flow generation. The company's financial statements reveal efficient cost management and a stable capital structure, though moderate leverage poses some risk if interest rates rise.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 | EBIT |
| 2.88B | 2.90B | 2.89B | 1.64B | 959.70M | EBITDA |
| 6.02B | 5.86B | 5.34B | 3.44B | 2.51B | Net Income Common Stockholders |
| 1.10B | 937.00M | 716.00M | 404.30M | 88.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.76B | 10.79B | 9.20B | 10.65B | 6.84B | Total Assets |
| 72.96B | 72.57B | 73.30B | 53.08B | 45.36B | Total Debt |
| 19.96B | 20.46B | 32.08B | 23.50B | 21.94B | Net Debt |
| 10.36B | 11.76B | 23.06B | 12.98B | 16.10B | 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
18.33
Price Trends
16.81
Positive
15.50
Positive
15.65
Positive
Market Momentum
0.44
Negative
65.66
Neutral
91.69
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 18.33 is above the 20-day moving average (MA) of 17.34, above the 50-day MA of 16.81, and above the 200-day MA of 15.65, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 91.69 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $26.59B | 22.22 | 13.31% | 2.42% | -1.40% | 14.80% | |
78 Outperform | $11.99B | 30.65 | 7.44% | 2.16% | 3.96% | -17.48% | |
78 Outperform | $11.90B | 30.77 | 16.02% | ― | 8.52% | 4.51% | |
75 Outperform | $7.41B | 520.74 | 1.00% | ― | 23.15% | -50.55% | |
73 Outperform | $11.99B | 15.25 | 11.70% | 0.11% | 0.57% | -5.62% | |
64 Neutral | $4.28B | 11.80 | 5.33% | 250.46% | 4.10% | -9.26% | |
59 Neutral | $17.01B | 35.45 | 5.63% | 2.41% | 3.26% | 27.77% |
* Industrials Sector Average
Performance Comparison
VEOEY
Veolia Environnement
18.33
2.25
13.99%
CWST
Casella Waste
116.75
22.47
23.83%
CLH
Clean Harbors
222.11
9.57
4.50%
LUV
Southwest Airlines
29.85
3.07
11.46%
TXT
Textron
71.02
-15.79
-18.19%
RTO
Rentokil Initial
23.85
-1.64
-6.43%
Veolia Environnement Earnings Call Summary
Earnings Call Date:Feb 27, 2025
(Q4-2024)
| % Change Since: 23.27%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Veolia's strong financial performance in 2024, achieving or exceeding targets across key metrics. The introduction of the GreenUp plan and a share buyback program underscores a strategic commitment to long-term growth. However, challenges in the energy segment and external economic factors were noted. Overall, the positive aspects significantly outweigh the negative ones, indicating a positive sentiment.Q4-2024 Updates
Positive Updates
Strong 2024 Financial Performance
Veolia achieved or exceeded all targets for 2024 with revenue growth of 5%, EBITDA growth of 5.8%, and current net income growth of 14.6% to €1.530 billion.
GreenUp Plan and Share Buyback Announcement
Veolia launched the GreenUp plan, which aims to deliver steady growth from 2024 to 2027. The company also announced a share buyback program from 2025 to 2027 to neutralize the employee shareholding program's dilution impact.
Water Technologies and Hazardous Waste Growth
Water Technologies revenue increased by 7%, and Hazardous Waste revenue increased by 7.1% in 2024, contributing to the company's growth in Booster activities.
Debt Reduction and Strong Cash Flow
Veolia ended 2024 with a leverage ratio of 2.63x, better than expected, due to strong free cash flow generation and divestiture of nonstrategic assets.
Dividend Increase
The company proposed a 12% increase in the dividend to €1.40, reflecting the strong financial performance.
Negative Updates
Energy Segment Challenges
Energy revenue decreased by 10.7% due to lower energy prices, and the company faced a negative energy price impact of about €100 million in 2024 at the EBITDA level.
External Economic and Political Challenges
The macroeconomic and political environment in 2024 was challenging, particularly in France and Europe, with ongoing geopolitical tension and inflationary pressures.
Company Guidance
In the recent conference call presenting Veolia's 2024 results, CEO Estelle Brachlianoff highlighted the company's strong financial performance despite challenging market conditions. Revenue grew by 5% excluding energy prices, with key growth in Booster activities such as Water Technologies, Hazardous Waste, and Bioenergy, which increased by 6.6%. Veolia's EBITDA rose by 5.8% to €6.788 billion, enhancing the EBITDA margin by 80 basis points to 15.2%. Current net income saw a remarkable 14.6% increase to €1.530 billion, alongside a current EPS growth of 12.4% to €2.13. The company ended the year with a lower-than-targeted debt and a comfortable leverage ratio of 2.63x. Looking ahead to 2025, Veolia aims for solid revenue growth, EBITDA growth of 5% to 6%, and net income growth of around 9%, supported by raised synergy targets and the launch of a share buyback program to neutralize the impact of the employee shareholding program. The strategic focus continues to be on the GreenUp plan, aiming for steady growth in net results and dividends through 2027.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.