ENXTPA:SEV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Suez SA, together with its subsidiaries, engages in the water cycle and waste cycle management business in France, Europe, North America, South America, Africa, the Middle East, and the Asia-Pacific.


Snowflake Analysis

Good value with moderate growth potential.


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

Stable Share Price: SEV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.9%

SEV

4.4%

FR Integrated Utilities

6.4%

FR Market


1 Year Return

-9.7%

SEV

4.5%

FR Integrated Utilities

-4.4%

FR Market

Return vs Industry: SEV underperformed the French Integrated Utilities industry which returned 3.7% over the past year.

Return vs Market: SEV underperformed the French Market which returned -6.6% over the past year.


Shareholder returns

SEVIndustryMarket
7 Day10.9%4.4%6.4%
30 Day15.2%9.4%13.0%
90 Day-26.7%-13.9%-5.7%
1 Year-5.7%-9.7%6.6%4.5%-2.7%-4.4%
3 Year-21.2%-32.2%11.8%-1.4%8.2%-0.5%
5 Year-18.8%-35.5%11.6%-12.7%27.0%10.8%

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?

42.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEV (€11.13) is trading below our estimate of fair value (€19.43)

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


Price To Earnings Ratio

PE vs Industry: SEV is poor value based on its PE Ratio (22.9x) compared to the Integrated Utilities industry average (19.8x).

PE vs Market: SEV is poor value based on its PE Ratio (22.9x) compared to the French market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: SEV is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SEV is good value based on its PB Ratio (1.1x) compared to the XE Integrated Utilities industry average (1.7x).


Next Steps

Future Growth

How is Suez forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEV's forecast earnings growth (24% per year) is above the savings rate (0.6%).

Earnings vs Market: SEV's earnings (24% per year) are forecast to grow faster than the French market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SEV's revenue (1.7% per year) is forecast to grow slower than the French market (3.9% per year).

High Growth Revenue: SEV's revenue (1.7% 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 (7.6%).


Next Steps

Past Performance

How has Suez performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEV has high quality earnings.

Growing Profit Margin: SEV's current net profit margins (1.7%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: SEV's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: SEV's earnings growth over the past year (3.3%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: SEV earnings growth over the past year (3.3%) underperformed the Integrated Utilities industry 3.8%.


Return on Equity

High ROE: SEV's Return on Equity (6.6%) is considered low.


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 (€12.1B).

Long Term Liabilities: SEV's short term assets (€11.5B) do not cover its long term liabilities (€14.2B).


Debt to Equity History and Analysis

Debt Level: SEV's debt to equity ratio (135.3%) is considered high.

Reducing Debt: SEV's debt to equity ratio has increased from 133.2% to 135.3% over the past 5 years.

Debt Coverage: SEV's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: SEV's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEV's dividend (4.04%) is higher than the bottom 25% of dividend payers in the French market (1.71%).

High Dividend: SEV's dividend (4.04%) is low compared to the top 25% of dividend payers in the French market (5.03%).


Stability and Growth of Payments

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

Growing Dividend: SEV's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.8%), 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 (77.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Bertrand Camus (52yo)

1.08yrs

Tenure

€1,893,891

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Bertrand's total compensation ($USD2.12M) is below average for companies of similar size in the French market ($USD3.16M).

Compensation vs Earnings: Insufficient data to compare Bertrand's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Bertrand Camus
CEO & Director1.08yrs€1.89m0.0016% 114.7k
Julian Waldron
Group Senior Executive Vice President of Finance0.42yrno datano data
Jean-Marc Boursier
COO & Group Senior EVP - France Region1.08yrsno datano data
Tiphaine Hecketsweiler
Group Chief Communications Officer and Chief Engagement & Communications Officer0.92yrno datano data
Loïc Voisin
Senior Vice President of Group Innovationno datano datano data
Isabelle Calvez
Group Chief Human Resources Officer3.17yrsno datano data
Christophe Cros
Group Senior Executive VP of North America Region & President of WTS* BU7.25yrsno datano data
Angel Simon Grimaldos
Group Senior Executive Vice President of Southern Europe and Latin America0.42yrno datano data
Marie-Ange Debon
Senior Executive Vice President Group - France12.67yrsno datano data
Dominique Mangin D'Ouince
Senior Vice President of Strategy and Development New Markets - International Divisionno datano datano data

1.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: SEV's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bertrand Camus
CEO & Director1.08yrs€1.89m0.0016% 114.7k
Nicolas Bazire
Independent Director11.92yrs€46.13k0.00032% 22.3k
Anne L. Marie Lauvergeon
Independent Director5.67yrs€77.57k0.00041% 28.5k
Guillaume Pepy
Independent Director11.92yrs€83.38k0.00034% 23.6k
Isidro Fainé Casas
Director5.67yrs€24.51k0.00032% 22.3k
Gérard Mestrallet
Director12.5yrs€53.89k0.0027% 188.5k
Jean-Louis Chaussade
Chairman of the Board1.08yrs€479.43k0.013% 900.6k
Isabelle Kocher
Director8.33yrs€38.14k0.00072% 50.1k
Delphine Cunci
Independent Director8.08yrs€67.38k0.00033% 22.9k
Agatta Constantini
Employee Representative Director5.5yrsno data0.000020% 1.4k

6.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: SEV's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Suez SA
  • Ticker: SEV
  • Exchange: ENXTPA
  • Founded: 1869
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €6.954b
  • Shares outstanding: 624.83m
  • 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
SZ1ETLX (Eurotlx)YesOrdinary SharesITEURJul 2008
SZEV.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 2008

Biography

Suez SA, together with its subsidiaries, engages in the water cycle and waste cycle management business in France, Europe, North America, South America, Africa, the Middle East, and the Asia-Pacific. The company operates through five segments: Water Europe, Recycling and Recovery Europe, International, Water Technologies & Solutions, and Other. It provides water distribution and treatment services to individuals, local authorities, and industrial clients; and waste collection and treatment services, including collection, sorting, recycling, composting, energy recovery, and landfilling for non-hazardous and hazardous waste for local authorities and industrial clients. The company also offers water network management services; technical assistance, operation, cleaning, and maintenance services; and spare parts, refurbishment, and associated services, as well as designs and operates storage facilities for hazardous and non-hazardous residual waste. In addition, it provides resource management consulting services; engineering and construction contracts and other services; and digital technology solutions for resource and asset protection, as well as deconstructs sites in the end-of-life phase and decontaminates soil and water tables. The company serves food and beverage, chemical and pharmaceutical, construction, site deconstruction and soil decontamination, mining, oil and gas, power, and pulp and paper industries. Suez SA was founded in 1869 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 22:25
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.