ENXTPA:SEV

Stock Analysis Report

Executive Summary

Suez SA, together with its subsidiaries, engages in the water and waste cycle management business in France, Europe, and internationally.

Snowflake

Fundamentals

Good value second-rate dividend payer.


Similar Companies

Share Price & News

How has Suez's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

SEV

-0.2%

FR Integrated Utilities

-0.03%

FR Market


1 Year Return

8.7%

SEV

14.3%

FR Integrated Utilities

10.4%

FR Market

Return vs Industry: SEV underperformed the French Integrated Utilities industry which returned 14.3% over the past year.

Return vs Market: SEV matched the French Market which returned 10.4% over the past year.


Shareholder returns

SEVIndustryMarket
7 Day0.6%-0.2%-0.03%
30 Day-4.3%1.2%-0.8%
90 Day4.3%2.9%-0.8%
1 Year14.7%8.7%20.2%14.3%14.2%10.4%
3 Year11.6%-3.5%25.0%5.5%42.3%28.5%
5 Year29.6%3.8%16.0%-10.9%72.6%46.3%

Price Volatility Vs. Market

How volatile is Suez's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Suez undervalued compared to its fair value and its price relative to the market?

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEV (€13.67) is trading below our estimate of fair value (€26.63)

Significantly Below Fair Value: SEV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SEV is good value based on its PE Ratio (20.5x) compared to the Integrated Utilities industry average (22.4x).

PE vs Market: SEV is poor value based on its PE Ratio (20.5x) compared to the French market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: SEV is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SEV is good value based on its PB Ratio (1.4x) compared to the XE Integrated Utilities industry average (1.8x).


Next Steps

Future Growth

How is Suez forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEV's forecast earnings growth (9.5% per year) is above the savings rate (0.7%).

Earnings vs Market: SEV's earnings (9.5% per year) are forecast to grow slower than the French market (11.5% per year).

High Growth Earnings: SEV's earnings are forecast to grow, but not significantly.

Revenue vs Market: SEV's revenue (2.1% per year) is forecast to grow slower than the French market (4.4% per year).

High Growth Revenue: SEV's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEV's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Suez performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SEV's earnings have declined by -4% per year over the past 5 years.

Accelerating Growth: SEV's earnings growth over the past year (34.8%) exceeds its 5-year average (-4% per year).

Earnings vs Industry: SEV earnings growth over the past year (34.8%) exceeded the Integrated Utilities industry -2.8%.


Return on Equity

High ROE: SEV's Return on Equity (7.7%) is considered low.


Return on Assets

ROA vs Industry: SEV's Return on Assets is below or equal to the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: SEV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Suez's financial position?


Financial Position Analysis

Short Term Liabilities: SEV's short term assets (€11.5B) do not cover its short term liabilities (€12.4B)

Long Term Liabilities: SEV's short term assets (11.5B) do not cover its long term liabilities (13.9B)


Debt to Equity History and Analysis

Debt Level: SEV's debt to equity ratio (140.2%) is considered high

Reducing Debt: SEV's debt to equity ratio has increased from 134.2% to 140.2% over the past 5 years.

Debt Coverage: SEV's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: SEV's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: SEV has a high level of physical assets or inventory.

Debt Coverage by Assets: SEV's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Suez's current dividend yield, its reliability and sustainability?

4.76%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.5%markettop25%4.7%industryaverage4.7%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SEV's dividend (4.76%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: SEV's dividend (4.76%) is in the top 25% of dividend payers in the French market (4.72%)

Stable Dividend: SEV's dividend payments have been volatile in the past 10 years.

Growing Dividend: SEV's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (97.6%), SEV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEV's dividends in 3 years are forecast to be covered by earnings (78.2% payout ratio).


Next Steps

Management

What is the CEO of Suez's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Bertrand Camus (52yo)

0.4yrs

Tenure

0

Mr. Bertrand Camus is Chief Executive Officer and Director at SUEZ SA since May 14, 2019. He was Deputy CEO in charge of the Africa, Middle East, India, Asia & Australia-Pacific regions at SUEZ SA since 20 ...


Management Age and Tenure

1.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: SEV's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

6.2yrs

Average Tenure

60yo

Average Age

Experienced Board: SEV's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Julian Waldron (55yo)

    Group Chief Financial Officer

    • Tenure: 0.4yrs
  • Gilles Benoist (73yo)

    Executive Officer

    • Tenure: 0yrs
  • Marie-Ange Debon (54yo)

    Senior Executive Vice President Group - France

    • Tenure: 12yrs
  • Christophe Cros (60yo)

    Senior Executive Vice President Group of Water Technologies & Solutions (WTS) - North America

    • Tenure: 1.7yrs
  • Angel Simon Grimaldos (62yo)

    Senior Executive Vice President of Group - Spain

    • Tenure: 6.5yrs
  • Jean-Marc Boursier (52yo)

    COO and Senior Executive VP of Group - Northern Europe & IWS Europe

    • Tenure: 0.4yrs
  • Bertrand Camus (52yo)

    CEO & Director

    • Tenure: 0.4yrs
  • Tiphaine Hecketsweiler

    Group Chief Communications Officer

    • Tenure: 0.3yrs
  • Loïc Voisin

    Senior Vice President of Group Innovation

    • Tenure: 0yrs
  • Isabelle Calvez (54yo)

    Group Chief Human Resources Officer

    • Tenure: 2.5yrs

Board Members

  • Nicolas Bazire (62yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: €65.62k
  • Anne L. Marie Lauvergeon (60yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: €99.33k
  • Guillaume Pepy (61yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: €73.06k
  • Gérard Mestrallet (70yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: €53.06k
  • Jean-Louis Chaussade (68yo)

    Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: €2.91m
  • Christophe Cros (60yo)

    Senior Executive Vice President Group of Water Technologies & Solutions (WTS) - North America

    • Tenure: 1.7yrs
  • Isabelle Kocher (53yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: €29.39k
  • Bertrand Camus (52yo)

    CEO & Director

    • Tenure: 0.4yrs
  • Delphine Cunci (53yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: €49.33k
  • Miriem Bensalah-Chaqroun (57yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: €23.62k

Company Information

Suez SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suez SA
  • Ticker: SEV
  • Exchange: ENXTPA
  • Founded: 1858
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €8.443b
  • Shares outstanding: 617.83m
  • Website: https://www.suez.com

Number of Employees


Location

  • Suez SA
  • CB21 Tower
  • 16 Place de l'Iris
  • Paris
  • Ile-de-France
  • 92040
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEVENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 2008
SZ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2008
0NRVLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2008
SZ1XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJul 2008
SZEV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2008
SEVPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2008
SEVSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJul 2008
SZEV.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 2008

Biography

Suez SA, together with its subsidiaries, engages in the water and waste cycle management business in France, Europe, and internationally. The company operates through five segments: Water Europe, Recycling ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:06
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.