OTCPK:SZEV.F

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 Analysis

Fair 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

Stable Share Price: SZEV.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.7%

SZEV.F

15.5%

US Integrated Utilities

10.5%

US Market


1 Year Return

-18.4%

SZEV.F

-9.2%

US Integrated Utilities

-11.5%

US Market

Return vs Industry: SZEV.F underperformed the US Integrated Utilities industry which returned -9.2% over the past year.

Return vs Market: SZEV.F underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

SZEV.FIndustryMarket
7 Day12.7%15.5%10.5%
30 Day-35.5%-12.3%-15.4%
90 Dayn/a-15.1%-21.4%
1 Year-18.4%-18.4%-6.0%-9.2%-9.6%-11.5%
3 Year-31.5%-31.5%15.6%3.9%12.6%5.4%
5 Year-36.8%-36.8%43.7%14.8%32.8%18.1%

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

No news available

Valuation

Is Suez 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: SZEV.F ($10.8) is trading below our estimate of fair value ($25.32)

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


Price To Earnings Ratio

PE vs Industry: SZEV.F is poor value based on its PE Ratio (20.1x) compared to the Integrated Utilities industry average (19.1x).

PE vs Market: SZEV.F is poor value based on its PE Ratio (20.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SZEV.F is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SZEV.F is good value based on its PB Ratio (0.9x) compared to the US Integrated Utilities industry average (1.6x).


Next Steps

Future Growth

How is Suez forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SZEV.F's forecast earnings growth (17.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SZEV.F's earnings (17.8% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: SZEV.F's revenue (1.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SZEV.F's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SZEV.F's Return on Equity is forecast to be low in 3 years time (6.5%).


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: SZEV.F has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: SZEV.F earnings growth over the past year (3.3%) underperformed the Integrated Utilities industry 5.7%.


Return on Equity

High ROE: SZEV.F'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: SZEV.F's short term assets (€11.5B) do not cover its short term liabilities (€12.1B).

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: SZEV.F'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?

6.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SZEV.F's dividend (6.67%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: SZEV.F's dividend (6.67%) is in the top 25% of dividend payers in the US market (5.45%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (134%), SZEV.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SZEV.F's dividends in 3 years are forecast to be covered by earnings (80.2% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Bertrand Camus (52yo)

0.83

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Gilles Benoist
Executive Officerno datano datano data
Bertrand Camus
CEO & Director0.83yrno datano data
Julian Waldron
Group Senior Executive Vice President of Finance0.83yrno datano data
Jean-Marc Boursier
COO & Group Senior EVP - France Region0.83yrno datano data
Tiphaine Hecketsweiler
Group Chief Engagement & Communications Officer0.67yrno datano data
Loïc Voisin
Senior Vice President of Group Innovationno datano datano data
Isabelle Calvez
Group Chief Human Resources Officer2.92yrsno datano data
Christophe Cros
Group Senior Executive VP of North America Region & President of WTS* BU7yrsno datano data
Angel Simon Grimaldos
Group Senior Executive Vice President of South Europe & LATAM Regions6.92yrsno datano data
Marie-Ange Debon
Senior Executive Vice President Group - France12.42yrsno datano data

1.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: SZEV.F's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bertrand Camus
CEO & Director0.83yrno datano data
Nicolas Bazire
Independent Director11.67yrs€65.62k0.00032% 21.6k
Anne L. Marie Lauvergeon
Independent Director5.42yrs€99.33k0.00041% 27.7k
Guillaume Pepy
Independent Director11.67yrs€73.06k0.00034% 23.0k
Isidro Fainé Casas
Director5.42yrs€26.62k0.00032% 21.6k
Gérard Mestrallet
Director12.25yrs€53.06k0.0031% 211.4k
Jean-Louis Chaussade
Chairman of the Board0.83yr€2.91m0.013% 874.7k
Isabelle Kocher
Director8.08yrs€29.39k0.00072% 48.6k
Delphine Cunci
Independent Director7.83yrs€49.33k0.00033% 22.3k
Agatta Constantini
Employee Representative Director5.25yrsno data0.000020% 1.4k

6.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: SZEV.F's board of directors are considered experienced (6.6 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: SZEV.F
  • Exchange: OTCPK
  • Founded: 1858
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €6.092b
  • Listing Market Cap: €6.755b
  • 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 and waste cycle management business in France, Europe, and internationally. 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 industrial sites in the end-of-life phase and decontaminates soil and water tables. Additionally, the company generates waste wood biomass energy, as well as engages in plastic recycling activities. It serves food and beverage, chemical and pharmaceutical, construction, mining and metal, oil and gas, power, pulp and paper, electronic and electronic products, leisure, and healthcare industries, as well as automotive, transport, and aeronautic sectors. Suez SA was founded in 1858 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 Analysis2020/03/28 03:28
End of Day Share Price2020/03/27 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.