VEOLIA ENVIRONNEMENT (VIE.PA) Stock Fundamental Analysis
EPA:VIE - Euronext Paris - Matif - FR0000124141 - Common Stock - Currency: EUR
Taking everything into account, VIE scores 3 out of 10 in our fundamental rating. VIE was compared to 14 industry peers in the Multi-Utilities industry. While VIE is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, VIE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year VIE was profitable.
VIE had a positive operating cash flow in the past year.
VIE had positive earnings in each of the past 5 years.
Each year in the past 5 years VIE had a positive operating cash flow.
1.2 Ratios
VIE has a worse Return On Assets (1.49%) than 85.71% of its industry peers.
The Return On Equity of VIE (8.85%) is worse than 64.29% of its industry peers.
With a decent Return On Invested Capital value of 5.64%, VIE is doing good in the industry, outperforming 64.29% of the companies in the same industry.
VIE had an Average Return On Invested Capital over the past 3 years of 4.13%. This is in line with the industry average of 6.12%.
The last Return On Invested Capital (5.64%) for VIE is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 8.85% | ||
| ROIC | 5.64% |
ROA(3y)1.01%
ROA(5y)0.95%
ROE(3y)5.65%
ROE(5y)5.74%
ROIC(3y)4.13%
ROIC(5y)4.3%
1.3 Margins
VIE's Profit Margin of 2.38% is on the low side compared to the rest of the industry. VIE is outperformed by 78.57% of its industry peers.
VIE's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.21%, VIE is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
VIE's Operating Margin has been stable in the last couple of years.
VIE has a Gross Margin of 17.75%. This is amonst the worse of the industry: VIE underperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of VIE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.21% | ||
| PM (TTM) | 2.38% | ||
| GM | 17.75% |
OM growth 3Y13.55%
OM growth 5Y0.44%
PM growth 3Y82.23%
PM growth 5Y7.46%
GM growth 3Y2.55%
GM growth 5Y-0.46%
2. Health
2.1 Basic Checks
VIE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
VIE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VIE has more shares outstanding
Compared to 1 year ago, VIE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that VIE is in the distress zone and has some risk of bankruptcy.
VIE has a Altman-Z score of 0.85. This is comparable to the rest of the industry: VIE outperforms 42.86% of its industry peers.
VIE has a debt to FCF ratio of 16.38. This is a negative value and a sign of low solvency as VIE would need 16.38 years to pay back of all of its debts.
VIE has a better Debt to FCF ratio (16.38) than 78.57% of its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that VIE has dependencies on debt financing.
VIE has a worse Debt to Equity ratio (1.63) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 16.38 | ||
| Altman-Z | 0.85 |
ROIC/WACC1.34
WACC4.21%
2.3 Liquidity
A Current Ratio of 0.89 indicates that VIE may have some problems paying its short term obligations.
VIE's Current ratio of 0.89 is on the low side compared to the rest of the industry. VIE is outperformed by 64.29% of its industry peers.
VIE has a Quick Ratio of 0.89. This is a bad value and indicates that VIE is not financially healthy enough and could expect problems in meeting its short term obligations.
VIE has a Quick ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
VIE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.86%.
The Earnings Per Share has been growing by 15.60% on average over the past years. This is quite good.
VIE shows a decrease in Revenue. In the last year, the revenue decreased by -1.56%.
The Revenue has been growing by 11.81% on average over the past years. This is quite good.
EPS 1Y (TTM)3.86%
EPS 3Y104.35%
EPS 5Y15.6%
EPS Q2Q%21.04%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y20.36%
Revenue growth 5Y11.81%
Sales Q2Q%-2.7%
3.2 Future
The Earnings Per Share is expected to grow by 9.28% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.47% on average over the next years.
EPS Next Y11.72%
EPS Next 2Y11.4%
EPS Next 3Y10.2%
EPS Next 5Y9.28%
Revenue Next Year0.16%
Revenue Next 2Y2%
Revenue Next 3Y2.97%
Revenue Next 5Y3.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.10, the valuation of VIE can be described as rather expensive.
VIE's Price/Earnings ratio is a bit more expensive when compared to the industry. VIE is more expensive than 78.57% of the companies in the same industry.
VIE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.15, VIE is valued correctly.
VIE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. VIE is more expensive than 64.29% of the companies in the same industry.
VIE is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VIE is on the same level as its industry peers.
VIE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VIE is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.43 | ||
| EV/EBITDA | 5.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.63
PEG (5Y)1.22
EPS Next 2Y11.4%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
VIE has a Yearly Dividend Yield of 4.54%, which is a nice return.
VIE's Dividend Yield is slightly below the industry average, which is at 4.91.
VIE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
5.2 History
The dividend of VIE is nicely growing with an annual growth rate of 17.26%!
Dividend Growth(5Y)17.26%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
VIE pays out 133.06% of its income as dividend. This is not a sustainable payout ratio.
VIE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP133.06%
EPS Next 2Y11.4%
EPS Next 3Y10.2%
VEOLIA ENVIRONNEMENT
EPA:VIE (2/5/2025, 11:38:21 AM)
27.5
-0.25 (-0.9%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners59.81%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap20.37B
Analysts80
Price Target36.55 (32.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
Yearly Dividend1.79
Dividend Growth(5Y)17.26%
DP133.06%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.1%
PT rev (3m)-0.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.22%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 12.15 | ||
| P/S | 0.46 | ||
| P/FCF | 11.43 | ||
| P/OCF | 4.15 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.88 |
EPS(TTM)1.44
EY5.24%
EPS(NY)2.26
Fwd EY8.23%
FCF(TTM)2.41
FCFY8.75%
OCF(TTM)6.62
OCFY24.07%
SpS60.4
BVpS16.24
TBVpS-10.49
PEG (NY)1.63
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 8.85% | ||
| ROCE | 7.86% | ||
| ROIC | 5.64% | ||
| ROICexc | 7.45% | ||
| ROICexgc | 20.31% | ||
| OM | 7.21% | ||
| PM (TTM) | 2.38% | ||
| GM | 17.75% | ||
| FCFM | 3.98% |
ROA(3y)1.01%
ROA(5y)0.95%
ROE(3y)5.65%
ROE(5y)5.74%
ROIC(3y)4.13%
ROIC(5y)4.3%
ROICexc(3y)5.86%
ROICexc(5y)6.09%
ROICexgc(3y)15.52%
ROICexgc(5y)16.1%
ROCE(3y)5.76%
ROCE(5y)6.01%
ROICexcg growth 3Y15.21%
ROICexcg growth 5Y2.78%
ROICexc growth 3Y12.75%
ROICexc growth 5Y-0.61%
OM growth 3Y13.55%
OM growth 5Y0.44%
PM growth 3Y82.23%
PM growth 5Y7.46%
GM growth 3Y2.55%
GM growth 5Y-0.46%
F-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 16.38 | ||
| Debt/EBITDA | 3.12 | ||
| Cap/Depr | 102.22% | ||
| Cap/Sales | 6.97% | ||
| Interest Coverage | 4.16 | ||
| Cash Conversion | 78.1% | ||
| Profit Quality | 167.35% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.85 |
F-Score6
WACC4.21%
ROIC/WACC1.34
Cap/Depr(3y)90.79%
Cap/Depr(5y)86.64%
Cap/Sales(3y)6.49%
Cap/Sales(5y)6.37%
Profit Quality(3y)245.79%
Profit Quality(5y)444.5%
High Growth Momentum
Growth
EPS 1Y (TTM)3.86%
EPS 3Y104.35%
EPS 5Y15.6%
EPS Q2Q%21.04%
EPS Next Y11.72%
EPS Next 2Y11.4%
EPS Next 3Y10.2%
EPS Next 5Y9.28%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y20.36%
Revenue growth 5Y11.81%
Sales Q2Q%-2.7%
Revenue Next Year0.16%
Revenue Next 2Y2%
Revenue Next 3Y2.97%
Revenue Next 5Y3.47%
EBIT growth 1Y16.09%
EBIT growth 3Y36.67%
EBIT growth 5Y12.3%
EBIT Next Year110.28%
EBIT Next 3Y32.83%
EBIT Next 5Y20.7%
FCF growth 1Y113.26%
FCF growth 3Y18.68%
FCF growth 5Y6.59%
OCF growth 1Y56.16%
OCF growth 3Y22.47%
OCF growth 5Y12%