VEOLIA ENVIRONNEMENT (VVD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:VVD - FR0000124141 - Common Stock
30.26 EUR
+0.9 (+3.07%)
We assign a fundamental rating of 4 out of 10 to VVD. VVD was compared to 17 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- VVD had positive earnings in the past year.
- In the past year VVD had a positive cash flow from operations.
- 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 has a worse Return On Assets (1.61%) than 94.12% of its industry peers.
- VVD's Return On Equity of 10.56% is on the low side compared to the rest of the industry. VVD is outperformed by 70.59% of its industry peers.
- VVD has a Return On Invested Capital of 6.22%. This is comparable to the rest of the industry: VVD outperforms 47.06% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VVD is in line with the industry average of 6.01%.
- The last Return On Invested Capital (6.22%) for VVD 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
- VVD has a Profit Margin of 2.48%. This is amonst the worse of the industry: VVD underperforms 88.24% of its industry peers.
- In the last couple of years the Profit Margin of VVD has remained more or less at the same level.
- With a Operating Margin value of 7.76%, VVD is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
- VVD's Operating Margin has improved in the last couple of years.
- The Gross Margin of VVD (18.28%) is worse than 88.24% of its industry peers.
- In the last couple of years the Gross Margin of VVD has remained more or less at the same level.
| 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
- 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.
- VVD has more shares outstanding than it did 5 years ago.
- VVD has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.87, we must say that VVD is in the distress zone and has some risk of bankruptcy.
- VVD has a Altman-Z score of 0.87. This is in the lower half of the industry: VVD underperforms 76.47% of its industry peers.
- The Debt to FCF ratio of VVD is 15.12, which is on the high side as it means it would take VVD, 15.12 years of fcf income to pay off all of its debts.
- VVD has a better Debt to FCF ratio (15.12) than 88.24% of its industry peers.
- VVD has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
- VVD's Debt to Equity ratio of 2.00 is on the low side compared to the rest of the industry. VVD is outperformed by 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 15.12 | ||
| Altman-Z | 0.87 |
ROIC/WACC1.34
WACC4.63%
2.3 Liquidity
- VVD has a Current Ratio of 0.88. 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's Current ratio of 0.88 is on the low side compared to the rest of the industry. VVD is outperformed by 64.71% of its industry peers.
- A Quick Ratio of 0.83 indicates that VVD may have some problems paying its short term obligations.
- The Quick ratio of VVD (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- VVD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.14%.
- Measured over the past 5 years, VVD shows a small growth in Earnings Per Share. The EPS has been growing by 7.31% on average per year.
- VVD shows a decrease in Revenue. In the last year, the revenue decreased by -0.31%.
- VVD 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
- VVD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.58% yearly.
- The Revenue is expected to grow by 3.50% on average over the next years.
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.
- 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
- A Price/Earnings ratio of 20.17 indicates a rather expensive valuation of VVD.
- Based on the Price/Earnings ratio, VVD is valued more expensive than 88.24% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. VVD is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 12.43 indicates a correct valuation of VVD.
- VVD's Price/Forward Earnings ratio is rather cheap when compared to the industry. VVD is cheaper than 82.35% of the companies in the same industry.
- VVD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 12.43 |
4.2 Price Multiples
- VVD's Enterprise Value to EBITDA is on the same level as the industry average.
- 88.24% of the companies in the same industry are more expensive than VVD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.28 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VVD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.64
PEG (5Y)2.76
EPS Next 2Y8.58%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
- VVD has a Yearly Dividend Yield of 4.69%, which is a nice return.
- VVD's Dividend Yield is a higher than the industry average which is at 4.55.
- Compared to an average S&P500 Dividend Yield of 1.82, VVD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
5.2 History
- On average, the dividend of VVD 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
- VVD pays out 116.53% of its income as dividend. 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.
DP116.53%
EPS Next 2Y8.58%
EPS Next 3Y8.85%
VEOLIA ENVIRONNEMENT / VVD.DE FAQ
Can you provide the ChartMill fundamental rating for VEOLIA ENVIRONNEMENT?
ChartMill assigns a fundamental rating of 4 / 10 to VVD.DE.
Can you provide the valuation status for VEOLIA ENVIRONNEMENT?
ChartMill assigns a valuation rating of 4 / 10 to VEOLIA ENVIRONNEMENT (VVD.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for VEOLIA ENVIRONNEMENT?
VEOLIA ENVIRONNEMENT (VVD.DE) has a profitability rating of 4 / 10.
Can you provide the financial health for VVD stock?
The financial health rating of VEOLIA ENVIRONNEMENT (VVD.DE) is 2 / 10.
How sustainable is the dividend of VEOLIA ENVIRONNEMENT (VVD.DE) stock?
The dividend rating of VEOLIA ENVIRONNEMENT (VVD.DE) is 6 / 10 and the dividend payout ratio is 116.53%.