VEOLIA ENVIRONNEMENT (VIE.PA)
FR0000124141 - Common Stock
We assign a fundamental rating of 4 out of 10 to VIE. VIE was compared to 12 industry peers in the Multi-Utilities industry. There are concerns on the financial health of VIE while its profitability can be described as average. VIE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VIE was profitable.
In the past year VIE had a positive cash flow from operations.
Each year in the past 5 years VIE has been profitable.
VIE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.49%, VIE is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
VIE has a worse Return On Equity (8.85%) than 83.33% of its industry peers.
VIE's Return On Invested Capital of 5.64% is in line compared to the rest of the industry. VIE outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIE is below the industry average of 6.48%.
The 3 year average ROIC (4.13%) for VIE is below the current ROIC(5.64%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 2.38%, VIE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of VIE has grown nicely.
VIE has a Operating Margin of 7.21%. This is in the lower half of the industry: VIE underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of VIE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 17.75%, VIE is doing worse than 91.67% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VIE is creating some value.
VIE has more shares outstanding than it did 1 year ago.
VIE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VIE is higher compared to a year ago.
2.2 Solvency
VIE has an Altman-Z score of 0.84. This is a bad value and indicates that VIE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VIE (0.84) is comparable to the rest of the industry.
The Debt to FCF ratio of VIE is 16.38, which is on the high side as it means it would take VIE, 16.38 years of fcf income to pay off all of its debts.
VIE has a better Debt to FCF ratio (16.38) than 75.00% of its industry peers.
VIE has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.63, VIE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 16.38 | ||
| Altman-Z | 0.84 |
ROIC/WACC1.35
WACC4.19%
2.3 Liquidity
VIE has a Current 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 worse Current ratio (0.89) than 66.67% 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
The Earnings Per Share has been growing slightly by 3.86% over the past year.
VIE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.60% yearly.
VIE shows a decrease in Revenue. In the last year, the revenue decreased by -1.56%.
VIE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.81% yearly.
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
VIE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.86% yearly.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y15.43%
EPS Next 2Y12.17%
EPS Next 3Y11.1%
EPS Next 5Y8.86%
Revenue Next Year0.37%
Revenue Next 2Y1.73%
Revenue Next 3Y2.74%
Revenue Next 5Y3.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.61, which indicates a rather expensive current valuation of VIE.
Based on the Price/Earnings ratio, VIE is valued more expensive than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.54, VIE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.68, the valuation of VIE can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIE indicates a slightly more expensive valuation: VIE is more expensive than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, VIE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIE is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
66.67% of the companies in the same industry are more expensive than VIE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.14 | ||
| EV/EBITDA | 5.77 |
4.3 Compensation for Growth
VIE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.21
PEG (5Y)1.19
EPS Next 2Y12.17%
EPS Next 3Y11.1%
5. Dividend
5.1 Amount
VIE has a Yearly Dividend Yield of 4.66%, which is a nice return.
Compared to an average industry Dividend Yield of 5.15, VIE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, VIE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
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
133.06% of the earnings are spent on dividend by VIE. 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 2Y12.17%
EPS Next 3Y11.1%
VEOLIA ENVIRONNEMENT
EPA:VIE (12/24/2024, 7:00:00 PM)
26.8
+0.07 (+0.26%)
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 Cap19.85B
Analysts80
Price Target36.65 (36.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
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)-0.09%
PT rev (3m)0.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 11.68 | ||
| P/S | 0.44 | ||
| P/FCF | 11.14 | ||
| P/OCF | 4.05 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.77 |
EPS(TTM)1.44
EY5.37%
EPS(NY)2.3
Fwd EY8.56%
FCF(TTM)2.41
FCFY8.98%
OCF(TTM)6.62
OCFY24.7%
SpS60.4
BVpS16.24
TBVpS-10.49
PEG (NY)1.21
PEG (5Y)1.19
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 | 0.84 |
F-Score6
WACC4.19%
ROIC/WACC1.35
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 Y15.43%
EPS Next 2Y12.17%
EPS Next 3Y11.1%
EPS Next 5Y8.86%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y20.36%
Revenue growth 5Y11.81%
Sales Q2Q%-2.7%
Revenue Next Year0.37%
Revenue Next 2Y1.73%
Revenue Next 3Y2.74%
Revenue Next 5Y3.53%
EBIT growth 1Y16.09%
EBIT growth 3Y36.67%
EBIT growth 5Y12.3%
EBIT Next Year110.28%
EBIT Next 3Y32.83%
EBIT Next 5Y20.66%
FCF growth 1Y113.26%
FCF growth 3Y18.68%
FCF growth 5Y6.59%
OCF growth 1Y56.16%
OCF growth 3Y22.47%
OCF growth 5Y12%