ENXTPA:VIE

Stock Analysis Report

Veolia Environnement

Executive Summary

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

Rewards

Trading at 19.9% below its fair value

Earnings are forecast to grow 7.66% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.27% is not well covered by earnings



Snowflake Analysis

Questionable track record unattractive dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

VIE

2.7%

FR Integrated Utilities

1.4%

FR Market


1 Year Return

47.0%

VIE

20.6%

FR Integrated Utilities

17.0%

FR Market

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

Return vs Market: VIE exceeded the French Market which returned 17.2% over the past year.


Shareholder returns

VIEIndustryMarket
7 Day3.7%2.7%1.4%
30 Day9.8%5.9%-0.02%
90 Day23.2%14.6%3.9%
1 Year53.8%47.0%26.7%20.6%21.1%17.0%
3 Year100.9%75.9%51.1%27.6%44.4%30.8%
5 Year107.5%69.2%33.6%2.8%56.1%34.0%

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?

19.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VIE (€28.16) is trading below our estimate of fair value (€35.15)

Significantly Below Fair Value: VIE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VIE is poor value based on its PE Ratio (34.1x) compared to the Integrated Utilities industry average (24.4x).

PE vs Market: VIE is poor value based on its PE Ratio (34.1x) compared to the French market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: VIE is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: VIE is overvalued based on its PB Ratio (2.8x) compared to the XE Integrated Utilities industry average (2x).


Next Steps

Future Growth

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

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIE's forecast earnings growth (7.7% per year) is above the savings rate (-0.1%).

Earnings vs Market: VIE's earnings (7.7% per year) are forecast to grow slower than the French market (13.4% per year).

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

Revenue vs Market: VIE's revenue (3% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: VIE's revenue (3% 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 (13.4%).


Next Steps

Past Performance

How has Veolia Environnement performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIE has high quality earnings.

Growing Profit Margin: VIE's current net profit margins (1.7%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: VIE's earnings have grown by 16% 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 (-17.1%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-3.6%).


Return on Equity

High ROE: VIE's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veolia Environnement's financial position?


Financial Position Analysis

Short Term Liabilities: VIE's short term assets (€15.6B) do not cover its short term liabilities (€16.3B).

Long Term Liabilities: VIE's short term assets (€15.6B) do not cover its long term liabilities (€15.9B).


Debt to Equity History and Analysis

Debt Level: VIE's debt to equity ratio (220.1%) is considered high.

Reducing Debt: VIE's debt to equity ratio has increased from 119.4% to 220.1% over the past 5 years.

Debt Coverage: VIE's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: VIE's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet

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

Debt Coverage by Assets: VIE's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

3.27%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%4.5%industryaverage3.9%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: VIE's dividend (3.27%) is higher than the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: VIE's dividend (3.27%) is low compared to the top 25% of dividend payers in the French market (4.48%).


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 (111.5%), 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 (75.5% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Antoine Frérot (61yo)

10.3yrs

Tenure

€2,944,931

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 ($USD3.19M) is about average for companies of similar size in the French market ($USD3.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Antoine Frérot
Chairman & CEO10.3yrs€2.94m0.0071% 1.1m
Claude Laruelle
Chief Financial Officer1.3yrsno datano data
Estelle Brachlianoff
Chief Operating Officer1.4yrsno datano data
Jean-Christophe Laissy
Senior VP of Information Systems & Technology? and CIO2.1yrsno datano data
Ronald Wasylec
Head of Investor Relations0yrsno datano data
Éric Haza
Chief Legal Officer0yrsno datano data
Jean-Baptiste Carpentier
Chief Compliance Officer2.1yrsno datano data
Laurent Obadia
Senior VP of Communications and Advisor to the Chairman & CEO2.1yrsno datano data
Jean-Marie Lambert
Senior Executive Vice President of Human Resources0yrsno datano data
Laurent Auguste
Senior Executive Vice President of Development0yrsno datano data

2.1yrs

Average Tenure

54yo

Average Age

Experienced Management: VIE's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Antoine Frérot
Chairman & CEO10.3yrs€2.94m0.0071% 1.1m
Louis Schweitzer
Vice Chairman6.8yrs€122.88k0.0056% 876.5k
Paolo Scaroni
Director13.2yrs€48.40k0.00017% 26.6k
Isabelle Courville
Independent Director3.8yrs€69.71k0.00018% 28.1k
Jacques Aschenbroich
Independent Director7.8yrs€68.24k0.00039% 60.9k
Maryse Aulagnon
Senior Independent Director2.3yrs€104.52k0.00054% 84.4k
Nathalie Rachou
Independent Director7.8yrs€97.45k0.00015% 23.4k
Olivier Mareuse
Independent Director7.9yrs€37.00kno data
Marion Guillou
Independent Director7.2yrs€55.80k0.00014% 21.9k
Pavel Páša
Representative Director5.3yrs€48.40kno data

7.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: VIE's board of directors are considered experienced (7.5 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

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: €15.624b
  • Shares outstanding: 554.82m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEOE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2000
VIEENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 2000
VVDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2000
0NY8LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2000
VIEPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2000
VVDXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJul 2000
VIEWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2000
VIESWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJul 2000
VVDETLX (Eurotlx)YesOrdinary SharesITEURJul 2000
VIE NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2000
VEOE.YOTCPK (Pink Sheets LLC)ADR EACH REP ONE ORD EUR13.5(SPON)USUSDOct 2001
VVDHDB (Deutsche Boerse AG)ADR EACH REP ONE ORD EUR13.5(SPON)DEEUROct 2001
VVDHBST (Boerse-Stuttgart)ADR EACH REP ONE ORD EUR13.5(SPON)DEEUROct 2001
A1HEWBBST (Boerse-Stuttgart)4.45%-VAR SUB NTS PERP EUR1000DEEURJan 2013

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 industrial process water; collection, treatment, and recycling of wastewater, including the treatment and recovery of waste; 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; and optimization of industrial utilities, as well as energy use related to processes and industrial buildings. It offers drinking water to 95 million people; wastewater treatment services to 63 million people; and waste collection services to 43 million people, as well as supplies heating to approximately 8.4 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 headquartered in Aubervilliers, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 20:42
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
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.