Is Veolia (ENXTPA:VIE) Still Undervalued After Its Steady Share Price Gains?

Simply Wall St

Veolia Environnement (ENXTPA:VIE) has quietly outpaced the market over the past year, and its recent climb continues to draw attention from investors who care about steady returns rather than flashy headlines.

See our latest analysis for Veolia Environnement.

At a latest share price of $29.43, Veolia’s solid year to date share price return of 8.08 percent and a 1 year total shareholder return of 9.50 percent suggest steady, rather than speculative, momentum that aligns with its gradual earnings growth.

If Veolia’s consistent progress appeals to you, it might be a good time to see what else is working in the utilities space and compare them with fast growing stocks with high insider ownership

Yet with analysts seeing further upside and intrinsic value models hinting at a sizable discount, investors now face a key question: is Veolia still undervalued or is the market already pricing in its future growth?

Most Popular Narrative Narrative: 17.6% Undervalued

With Veolia last closing at €29.43 against a narrative fair value of about €35.71, the story framing this gap leans on durable earnings power and regulation driven growth.

Strong multi year growth in Water Technologies and Hazardous Waste segments is being driven by rising health, resilience, and environmental compliance requirements worldwide, as reflected in Veolia's record order book and robust +8.9% growth in booster activities. This is likely to support sustained revenue and EBITDA growth, underpinned by tightening global regulations on pollution and water safety.

Read the complete narrative.

Curious what kind of long term revenue path, margin lift, and earnings multiple can justify that higher value, and how far those projections really stretch?

Result: Fair Value of $35.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, flat tariffs in core French water operations and integration risks from recent acquisitions could easily derail the margin and earnings story.

Find out about the key risks to this Veolia Environnement narrative.

Build Your Own Veolia Environnement Narrative

If you would rather dig into the numbers yourself instead of relying on this view, you can build a tailored thesis in just a few minutes: Do it your way

A great starting point for your Veolia Environnement research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Before you move on, take a moment to explore other opportunities that could complement a Veolia position and help keep your portfolio working efficiently.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we're here to simplify it.

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