VEOLIA ENVIRONNEMENT (VIE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:VIE - FR0000124141 - Common Stock
30 EUR
+0.04 (+0.13%)
We assign a fundamental rating of 4 out of 10 to VIE. VIE was compared to 17 industry peers in the Multi-Utilities industry. VIE has a medium profitability rating, but doesn't score so well on its financial health evaluation. VIE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- VIE had positive earnings in the past year.
- In the past year VIE had a positive cash flow from operations.
- Each year in the past 5 years VIE has been profitable.
- In the past 5 years VIE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of VIE (1.61%) is worse than 88.24% of its industry peers.
- With a Return On Equity value of 10.56%, VIE is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- The Return On Invested Capital of VIE (6.22%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for VIE is in line with the industry average of 6.01%.
- The last Return On Invested Capital (6.22%) for VIE is above the 3 year average (5.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 10.56% | ||
| ROIC | 6.22% |
ROA(3y)1.26%
ROA(5y)0.95%
ROE(3y)7.32%
ROE(5y)5.34%
ROIC(3y)5.04%
ROIC(5y)4.36%
1.3 Margins
- VIE's Profit Margin of 2.48% is on the low side compared to the rest of the industry. VIE is outperformed by 82.35% of its industry peers.
- VIE's Profit Margin has been stable in the last couple of years.
- With a Operating Margin value of 7.76%, VIE is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
- VIE's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 18.28%, VIE is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
- VIE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.76% | ||
| PM (TTM) | 2.48% | ||
| GM | 18.28% |
OM growth 3Y18.91%
OM growth 5Y3.17%
PM growth 3Y20.1%
PM growth 5Y1.34%
GM growth 3Y3.77%
GM growth 5Y1.11%
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.
- The number of shares outstanding for VIE has been increased compared to 1 year ago.
- The number of shares outstanding for VIE has been increased compared to 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 0.87. 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 (0.87) is worse than 82.35% of its industry peers.
- The Debt to FCF ratio of VIE is 15.12, which is on the high side as it means it would take VIE, 15.12 years of fcf income to pay off all of its debts.
- VIE has a better Debt to FCF ratio (15.12) than 94.12% of its industry peers.
- A Debt/Equity ratio of 2.00 is on the high side and indicates that VIE has dependencies on debt financing.
- VIE has a worse Debt to Equity ratio (2.00) than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 15.12 | ||
| Altman-Z | 0.87 |
ROIC/WACC1.35
WACC4.62%
2.3 Liquidity
- VIE has a Current Ratio of 0.88. 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 Current ratio of 0.88. This is comparable to the rest of the industry: VIE outperforms 41.18% of its industry peers.
- VIE has a Quick Ratio of 0.88. 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 of 0.83. This is comparable to the rest of the industry: VIE outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- VIE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.14%.
- VIE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.31% yearly.
- The Revenue has decreased by -0.31% in the past year.
- VIE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.45% yearly.
EPS 1Y (TTM)4.14%
EPS 3Y31.56%
EPS 5Y7.31%
EPS Q2Q%2.23%
Revenue 1Y (TTM)-0.31%
Revenue growth 3Y16.17%
Revenue growth 5Y10.45%
Sales Q2Q%-0.42%
3.2 Future
- Based on estimates for the next years, VIE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.58% on average per year.
- VIE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y7.63%
EPS Next 2Y8.58%
EPS Next 3Y8.85%
EPS Next 5Y8.58%
Revenue Next Year0.54%
Revenue Next 2Y2.3%
Revenue Next 3Y3.03%
Revenue Next 5Y3.5%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- With a Price/Earnings ratio of 20.00, VIE is valued on the expensive side.
- Based on the Price/Earnings ratio, VIE is valued expensively inside the industry as 82.35% of the companies are valued cheaper.
- VIE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- With a Price/Forward Earnings ratio of 12.32, VIE is valued correctly.
- Based on the Price/Forward Earnings ratio, VIE is valued cheaper than 88.24% of the companies in the same industry.
- VIE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 12.32 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as VIE.
- Based on the Price/Free Cash Flow ratio, VIE is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.18 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VIE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.62
PEG (5Y)2.74
EPS Next 2Y8.58%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
- VIE has a Yearly Dividend Yield of 4.69%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.55, VIE pays a bit more dividend than its industry peers.
- VIE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
5.2 History
- On average, the dividend of VIE grows each year by 14.14%, which is quite nice.
Dividend Growth(5Y)14.14%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 116.53% 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.
DP116.53%
EPS Next 2Y8.58%
EPS Next 3Y8.85%
VEOLIA ENVIRONNEMENT / VIE.PA FAQ
What is the fundamental rating for VIE stock?
ChartMill assigns a fundamental rating of 4 / 10 to VIE.PA.
What is the valuation status for VIE stock?
ChartMill assigns a valuation rating of 4 / 10 to VEOLIA ENVIRONNEMENT (VIE.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for VEOLIA ENVIRONNEMENT?
VEOLIA ENVIRONNEMENT (VIE.PA) has a profitability rating of 4 / 10.
How financially healthy is VEOLIA ENVIRONNEMENT?
The financial health rating of VEOLIA ENVIRONNEMENT (VIE.PA) is 2 / 10.
What is the expected EPS growth for VEOLIA ENVIRONNEMENT (VIE.PA) stock?
The Earnings per Share (EPS) of VEOLIA ENVIRONNEMENT (VIE.PA) is expected to grow by 7.63% in the next year.