VEOLIA ENVIRONNEMENT (VVD.DE) Stock Fundamental Analysis
FRA:VVD - Deutsche Boerse Ag - FR0000124141 - Common Stock - Currency: EUR
VVD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 14 industry peers in the Multi-Utilities industry. While VVD is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, VVD is valued expensive at the moment.
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.
In the past 5 years VVD has always been profitable.
Each year in the past 5 years VVD had a positive operating cash flow.
1.2 Ratios
VVD's Return On Assets of 1.49% is on the low side compared to the rest of the industry. VVD is outperformed by 92.86% of its industry peers.
The Return On Equity of VVD (8.85%) is worse than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.64%, VVD is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VVD is in line with the industry average of 6.12%.
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
The Profit Margin of VVD (2.38%) is worse than 85.71% of its industry peers.
In the last couple of years the Profit Margin of VVD has grown nicely.
VVD has a worse Operating Margin (7.21%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of VVD has remained more or less at the same level.
The Gross Margin of VVD (17.75%) is worse than 92.86% of its industry peers.
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
VVD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
VVD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VVD has more shares outstanding
Compared to 1 year ago, VVD has a worse debt to assets ratio.
2.2 Solvency
VVD has an Altman-Z score of 0.85. This is a bad value and indicates that VVD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VVD (0.85) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of VVD (16.38) is better than 71.43% of its industry peers.
VVD has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VVD (1.63) is worse than 71.43% 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 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 71.43% 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.
VVD 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.
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.
Looking at the last year, VVD shows a decrease in Revenue. The Revenue has decreased by -1.56% in the last year.
VVD 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
VVD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.28% yearly.
VVD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.47% yearly.
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.
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 19.28, VVD is valued on the expensive side.
Based on the Price/Earnings ratio, VVD is valued more expensive than 85.71% of the companies in the same industry.
VVD is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.26, the valuation of VVD can be described as correct.
Based on the Price/Forward Earnings ratio, VVD is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
VVD 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 | 19.28 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VVD indicates a slightly more expensive valuation: VVD is more expensive than 64.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VVD is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 5.88 |
4.3 Compensation for Growth
VVD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.65
PEG (5Y)1.24
EPS Next 2Y11.4%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.54%, VVD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.91, VVD has a dividend in line with its industry peers.
VVD'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
On average, the dividend of VVD grows each year by 17.26%, which is quite nice.
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.
VVD'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
FRA:VVD (2/4/2025, 7:00:00 PM)
27.76
+0.41 (+1.5%)
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 Cap20.56B
Analysts80
Price Target36.57 (31.74%)
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)-0.06%
PT rev (3m)-0.32%
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 | 19.28 | ||
| Fwd PE | 12.26 | ||
| P/S | 0.46 | ||
| P/FCF | 11.54 | ||
| P/OCF | 4.19 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.88 |
EPS(TTM)1.44
EY5.19%
EPS(NY)2.26
Fwd EY8.16%
FCF(TTM)2.41
FCFY8.67%
OCF(TTM)6.62
OCFY23.84%
SpS60.4
BVpS16.24
TBVpS-10.49
PEG (NY)1.65
PEG (5Y)1.24
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%