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Veolia Environnement
(OTC:VEOEY)
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Rating:57Neutral
Price Target:
$19.00
▼(-3.75% Downside)
Action:Reiterated
Date:10/31/26
The score is held back primarily by financial risk factors—especially the sharp 2025 leverage increase and volatile/free cash flow decline—despite improving profitability. Offsetting these, the earnings call was constructive with upgraded 2026 guidance and H1 margin expansion, while valuation is supported by a strong dividend yield. Technically, near-term momentum is positive but looks stretched and the longer-term trend remains below key moving averages.
Positive Factors
Recurring Contract Model
Long-term, contract-based water, waste, and energy services can provide recurring revenue and visibility across economic cycles. Indexed tariffs, performance-linked fees, and asset-operation contracts also support retention and create durable customer relationships with municipalities and industrial clients.
Negative Factors
Elevated Leverage
The sharp increase in leverage reduces balance-sheet flexibility and leaves less capacity to absorb operating setbacks or fund additional growth internally. Higher debt also increases the importance of disposals, cash generation, and disciplined capital allocation for sustaining financial stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Contract Model
Long-term, contract-based water, waste, and energy services can provide recurring revenue and visibility across economic cycles. Indexed tariffs, performance-linked fees, and asset-operation contracts also support retention and create durable customer relationships with municipalities and industrial clients.
Read all positive factors
Veolia Environnement (VEOEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.93B
Dividend Yield4.94%
Average Volume (3M)7.81K
Price to Earnings (P/E)19.6
Beta (1Y)0.23
Revenue Growth7.13%
EPS Growth20.46%
CountryUS
Employees215,965
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)0.85
Shares Outstanding1,484,993,300
10 Day Avg. Volume0
30 Day Avg. Volume7,807
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 Cap2.53
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit8.57
Enterprise Value/Ebitda10.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.36
Revenue Forecast (FY)$52.52B
Veolia Environnement Business Overview & Revenue Model
Company Description
Veolia Environnement SA designs and provides water, waste, and energy management solutions. It operates through France and Hazardous Waste Europe; Europe; Americas, Asia Pacific, Africa Middle-East; Water Technologies; and Other segments. The comp...
How the Company Makes Money
Veolia primarily makes money by operating long-term, contract-based environmental services for cities and industrial clients, earning recurring revenue from fees tied to service delivery and asset operation. In its Water activities, revenues gener...
Veolia Environnement Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: Veolia delivered solid H1 results with revenue growth, notable EBITDA and margin expansion, strong current net income growth (+10.4%), improved net free cash flow and an upgraded full-year net income guidance (at least +8% including Clean Earth). Strategic moves — Clean Earth acquisition, continued asset rotation (~EUR 8–8.5bn over 4 years), booster/technology momentum (orders in MicroE, PFAS and data center solutions) and recurring efficiencies (EUR 195m in H1) — reinforce the constructive outlook. Key near-term headwinds include Water Technologies project delays tied to Middle East disruptions, temporary margin pressure from higher fuel/chemical costs (with pass-through lags), elevated net debt following M&A, and integration/non-current costs from Clean Earth. Management expects most negative effects to be temporary and to be offset by operational actions and indexation in H2, supporting the upgraded guidance and confidence in the mid/long-term trajectory.Positive Updates
Revenue Growth
H1 revenue of EUR 22.193 billion (reported as EUR 22.2bn), up +1.5% at current FX (excluding energy prices). Organic revenue growth supported by municipal water, district cooling traction and strong regional performance outside Europe.
Negative Updates
Water Technologies Project Delays
Water Technologies revenue was slightly down in H1 due to booking and milestone delays tied to the Middle East crisis (e.g., desalination and oil & gas effluent projects). Management expects recovery in H2 but H1 growth was impacted.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
H1 revenue of EUR 22.193 billion (reported as EUR 22.2bn), up +1.5% at current FX (excluding energy prices). Organic revenue growth supported by municipal water, district cooling traction and strong regional performance outside Europe.
Read all positive updates
Company Guidance
Management raised 2026 guidance: they now target current net income growth of at least +8% (explicitly including Clean Earth) with organic EBITDA growth of 5–6% and continued organic revenue growth excluding energy prices. H1 underpinned the move (revenue €22.2bn, +1.5% excl. energy; EBITDA €3.552bn, +5% at constant scope/FX; EBITDA margin +70bps to 16%; current net income +10.4%); net debt stands at €24.5bn (post‑Clean Earth) with year‑end leverage at ~or slightly above 3x. They reiterated delivery of €2bn disposals by mid‑2028 (≈€500m expected signed in 2026), confirmed cost‑of‑debt guidance ~€800m (other financial charges <€300m), a stable tax rate of 25.8%, ForEx now estimated around -€50m (vs. -€100m at the start of the year), and that the Clean Earth PPA (≈€15m est.) will be treated as non‑current while $120m of synergies are targeted by year 4.Veolia Environnement Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
38
Negative
Cash Flow
47
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.82B | 42.64B | 44.69B | 45.35B | 42.89B | 28.51B |
| Gross Profit | 7.95B | 7.51B | 7.77B | 7.50B | 7.11B | 4.58B |
| EBITDA | 6.75B | 6.39B | 6.02B | 5.86B | 5.84B | 3.44B |
| Net Income | 1.21B | 1.17B | 1.10B | 937.00M | 716.00M | 404.30M |
Balance Sheet | ||||||
| Total Assets | 74.61B | 70.64B | 72.96B | 72.57B | 73.30B | 53.08B |
| Cash, Cash Equivalents and Short-Term Investments | 7.28B | 8.02B | 11.76B | 10.79B | 10.86B | 11.96B |
| Total Debt | 37.51B | 33.33B | 19.96B | 20.46B | 28.58B | 21.04B |
| Total Liabilities | 64.86B | 61.21B | 57.65B | 57.86B | 61.93B | 42.77B |
| Stockholders Equity | 7.13B | 7.02B | 12.91B | 12.31B | 12.26B | 11.52B |
Cash Flow | ||||||
| Free Cash Flow | 1.40B | 1.40B | 5.04B | 1.86B | 855.50M | 1.28B |
| Operating Cash Flow | 4.50B | 4.34B | 5.04B | 5.00B | 3.64B | 3.01B |
| Investing Cash Flow | -5.67B | -3.27B | -2.12B | -2.12B | 4.52B | -850.60M |
| Financing Cash Flow | 994.71M | -2.51B | -1.86B | -3.14B | -10.17B | 2.29B |
Veolia Environnement Technical Analysis
Positive
19.74
Price Trends
18.22
Positive
19.37
Negative
19.30
Negative
Market Momentum
0.03
Negative
58.34
Neutral
96.70
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 19.74 is above the 20-day moving average (MA) of 17.80, above the 50-day MA of 18.22, and above the 200-day MA of 19.30, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 96.70 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $91.81B | 30.18 | 30.85% | 1.59% | 5.19% | 19.97% | |
74 Outperform | $72.35B | 32.68 | 18.47% | 1.08% | 3.21% | 4.30% | |
68 Neutral | $16.31B | 30.96 | 18.27% | ― | 10.09% | 38.12% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $5.75B | 968.99 | 0.36% | ― | 13.59% | -50.47% | |
57 Neutral | $26.93B | 19.55 | 17.55% | 4.94% | 7.13% | 20.46% | |
50 Neutral | $282.63M | -11.79 | -40.97% | ― | -4.73% | 0.30% |
* Industrials Sector Average
VEOEY
Veolia Environnement
18.34
2.23
13.86%
CWST
Casella Waste
90.31
1.74
1.96%
CLH
Clean Harbors
309.33
98.82
46.94%
PESI
Perma-Fix
13.32
-0.37
-2.70%
RSG
Republic Services
236.28
30.51
14.83%
WM
Waste Management
230.90
34.41
17.51%
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.