VEOLIA ENVIRONNEMENT (VVD.DE) Stock Fundamental Analysis
FRA:VVD - Deutsche Boerse Ag - FR0000124141 - Common Stock - Currency: EUR
Taking everything into account, VVD scores 3 out of 10 in our fundamental rating. VVD was compared to 13 industry peers in the Multi-Utilities industry. There are concerns on the financial health of VVD while its profitability can be described as average. VVD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VVD had positive earnings in the past year.
VVD had a positive operating cash flow in the past year.
Each year in the past 5 years VVD has been profitable.
Each year in the past 5 years VVD had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.49%, VVD is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 8.85%, VVD is doing worse than 76.92% of the companies in the same industry.
VVD has a Return On Invested Capital of 5.64%. This is in the lower half of the industry: VVD underperforms 69.23% of its industry peers.
VVD had an Average Return On Invested Capital over the past 3 years of 4.13%. This is below the industry average of 6.72%.
The 3 year average ROIC (4.13%) for VVD 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
VVD's Profit Margin of 2.38% is on the low side compared to the rest of the industry. VVD is outperformed by 84.62% of its industry peers.
VVD's Profit Margin has improved in the last couple of years.
The Operating Margin of VVD (7.21%) is worse than 69.23% of its industry peers.
In the last couple of years the Operating Margin of VVD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 17.75%, VVD is doing worse than 92.31% of the companies in the same industry.
VVD's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VVD is still creating some value.
The number of shares outstanding for VVD has been increased compared to 1 year ago.
The number of shares outstanding for VVD has been increased compared to 5 years ago.
Compared to 1 year ago, VVD has a worse debt to assets ratio.
2.2 Solvency
VVD has an Altman-Z score of 0.87. This is a bad value and indicates that VVD is not financially healthy and even has some risk of bankruptcy.
VVD has a worse Altman-Z score (0.87) than 84.62% of its industry peers.
VVD has a debt to FCF ratio of 16.38. This is a negative value and a sign of low solvency as VVD would need 16.38 years to pay back of all of its debts.
VVD's Debt to FCF ratio of 16.38 is fine compared to the rest of the industry. VVD outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that VVD has dependencies on debt financing.
VVD's Debt to Equity ratio of 1.63 is on the low side compared to the rest of the industry. VVD is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 16.38 | ||
| Altman-Z | 0.87 |
ROIC/WACC1.25
WACC4.5%
2.3 Liquidity
A Current Ratio of 0.89 indicates that VVD may have some problems paying its short term obligations.
VVD has a Current ratio of 0.89. This is in the lower half of the industry: VVD underperforms 69.23% of its industry peers.
VVD has a Quick Ratio of 0.89. This is a bad value and indicates that VVD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.84, VVD is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
VVD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.86%.
Measured over the past years, VVD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.60% on average per year.
The Revenue has decreased by -1.56% in the past year.
Measured over the past years, VVD shows a quite strong growth in Revenue. The Revenue has been growing by 11.81% on average per year.
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 Y11.55%
EPS Next 2Y11.32%
EPS Next 3Y10.15%
EPS Next 5Y9.28%
Revenue Next Year0.03%
Revenue Next 2Y1.66%
Revenue Next 3Y2.65%
Revenue Next 5Y3.47%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 21.37, the valuation of VVD can be described as rather expensive.
92.31% of the companies in the same industry are cheaper than VVD, based on the Price/Earnings ratio.
VVD is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.61 indicates a correct valuation of VVD.
VVD's Price/Forward Earnings ratio is rather expensive when compared to the industry. VVD is more expensive than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, VVD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
76.92% of the companies in the same industry are cheaper than VVD, based on the Enterprise Value to EBITDA ratio.
VVD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.79 | ||
| EV/EBITDA | 6.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.85
PEG (5Y)1.37
EPS Next 2Y11.32%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, VVD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.81, VVD is paying slightly less dividend.
VVD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
The dividend of VVD 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 VVD. This is not a sustainable payout ratio.
The dividend of VVD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP133.06%
EPS Next 2Y11.32%
EPS Next 3Y10.15%
FRA:VVD (3/7/2025, 7:00:00 PM)
30.77
+0.36 (+1.18%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners59.93%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap22.79B
Analysts80
Price Target36.96 (20.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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)1.08%
PT rev (3m)0.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-3.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 13.61 | ||
| P/S | 0.51 | ||
| P/FCF | 12.79 | ||
| P/OCF | 4.65 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.24 |
EPS(TTM)1.44
EY4.68%
EPS(NY)2.26
Fwd EY7.35%
FCF(TTM)2.41
FCFY7.82%
OCF(TTM)6.62
OCFY21.51%
SpS60.4
BVpS16.24
TBVpS-10.49
PEG (NY)1.85
PEG (5Y)1.37
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 | 0.87 |
F-Score6
WACC4.5%
ROIC/WACC1.25
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 Y11.55%
EPS Next 2Y11.32%
EPS Next 3Y10.15%
EPS Next 5Y9.28%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y20.36%
Revenue growth 5Y11.81%
Sales Q2Q%-2.7%
Revenue Next Year0.03%
Revenue Next 2Y1.66%
Revenue Next 3Y2.65%
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%