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Veolia Environnement

Market Cap

€11.3b

Last Updated

2021/04/16 18:08 UTC

Data Sources

Company Financials +

Executive Summary

Veolia Environnement S.A. designs and provides water, waste, and energy management solutions worldwide. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VIE is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VIE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

10.1%

VIE

1.2%

FR Integrated Utilities

2.1%

FR Market


1 Year Return

25.1%

VIE

19.6%

FR Integrated Utilities

42.7%

FR Market

Return vs Industry: VIE exceeded the French Integrated Utilities industry which returned 19.6% over the past year.

Return vs Market: VIE underperformed the French Market which returned 42.7% over the past year.


Shareholder returns

VIEIndustryMarket
7 Day10.1%1.2%2.1%
30 Day10.0%7.6%4.6%
90 Day7.5%1.7%12.1%
1 Year28.4%25.1%23.8%19.6%45.4%42.7%
3 Year44.2%28.8%32.7%16.6%30.9%20.4%
5 Year43.3%18.0%47.2%15.3%75.2%50.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VIE (€24.86) is trading below our estimate of fair value (€61.13)

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


Price To Earnings Ratio

PE vs Industry: VIE is poor value based on its PE Ratio (126.9x) compared to the XE Integrated Utilities industry average (22.8x).

PE vs Market: VIE is poor value based on its PE Ratio (126.9x) compared to the French market (25.7x).


Price to Earnings Growth Ratio

PEG Ratio: VIE is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: VIE is overvalued based on its PB Ratio (1.9x) compared to the XE Integrated Utilities industry average (1.7x).


Future Growth

How is Veolia Environnement forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIE's forecast earnings growth (37% per year) is above the savings rate (0.4%).

Earnings vs Market: VIE's earnings (37% per year) are forecast to grow faster than the French market (21.4% per year).

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

Revenue vs Market: VIE's revenue (3.4% per year) is forecast to grow slower than the French market (6.9% per year).

High Growth Revenue: VIE's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VIE's Return on Equity is forecast to be low in 3 years time (13.7%).


Past Performance

How has Veolia Environnement performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIE has a large one-off loss of €209.9M impacting its December 31 2020 financial results.

Growing Profit Margin: VIE's current net profit margins (0.4%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: VIE's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: VIE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VIE had negative earnings growth (-85.1%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-0.5%).


Return on Equity

High ROE: VIE's Return on Equity (2.7%) is considered low.


Financial Health

How is Veolia Environnement's financial position?


Financial Position Analysis

Short Term Liabilities: VIE's short term assets (€17.6B) do not cover its short term liabilities (€20.4B).

Long Term Liabilities: VIE's short term assets (€17.6B) exceed its long term liabilities (€16.6B).


Debt to Equity History and Analysis

Debt Level: VIE's debt to equity ratio (219.5%) is considered high.

Reducing Debt: VIE's debt to equity ratio has increased from 133% to 219.5% over the past 5 years.

Debt Coverage: VIE's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: VIE's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

What is Veolia Environnement current dividend yield, its reliability and sustainability?

2.82%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 17 2021Ex Dividend DateMay 10 2021Dividend Pay DateMay 12 20212 days from Ex DividendBuy in the next 23 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: VIE's dividend (2.82%) is higher than the bottom 25% of dividend payers in the French market (1.28%).

High Dividend: VIE's dividend (2.82%) is low compared to the top 25% of dividend payers in the French market (3.93%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (357.3%), VIE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VIE's dividends in 3 years are forecast to be covered by earnings (72.3% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Antoine Frérot (62 yo)

11.42yrs

Tenure

€2,795,739

Compensation

Mr. Antoine Frérot serves as the Chairman and Chief Executive Officer at Veolia Komodity CR, s.r.o. Mr. Frérot serves as the Chairman and Chief Executive Officer of Veolia Environmental Services North Amer...


CEO Compensation Analysis

Compensation vs Market: Antoine's total compensation ($USD3.34M) is about average for companies of similar size in the French market ($USD3.92M).

Compensation vs Earnings: Antoine's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VIE's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: VIE's board of directors are considered experienced (8.1 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Veolia Environnement S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veolia Environnement S.A.
  • Ticker: VIE
  • Exchange: ENXTPA
  • Founded: 1853
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €11.269b
  • Shares outstanding: 566.07m
  • Website: https://www.veolia.com/fr

Number of Employees


Location

  • Veolia Environnement S.A.
  • 30, rue Madeleine-Vionnet
  • Aubervilliers
  • Ile-de-France
  • 93300
  • France

Listings


Biography

Veolia 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 in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 18:08
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.