VEOLIA ENVIRONNEMENT (VVD.DE) Stock Fundamental Analysis
FRA:VVD - Deutsche Boerse Ag - FR0000124141 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to VVD. VVD was compared to 13 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
In the past year VVD was profitable.
In the past year VVD had a positive cash flow from operations.
In the past 5 years VVD has always been profitable.
VVD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VVD has a Return On Assets of 1.51%. This is amonst the worse of the industry: VVD underperforms 92.31% of its industry peers.
VVD's Return On Equity of 8.52% is on the low side compared to the rest of the industry. VVD is outperformed by 76.92% of its industry peers.
VVD has a Return On Invested Capital of 5.75%. This is comparable to the rest of the industry: VVD outperforms 46.15% of its industry peers.
VVD had an Average Return On Invested Capital over the past 3 years of 5.04%. This is in line with the industry average of 6.44%.
The last Return On Invested Capital (5.75%) for VVD is above the 3 year average (5.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 8.52% | ||
| ROIC | 5.75% |
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 2.46%. This is amonst the worse of the industry: VVD underperforms 92.31% of its industry peers.
In the last couple of years the Profit Margin of VVD has remained more or less at the same level.
VVD's Operating Margin of 7.50% is on the low side compared to the rest of the industry. VVD is outperformed by 76.92% of its industry peers.
In the last couple of years the Operating Margin of VVD has grown nicely.
VVD's Gross Margin of 18.04% is on the low side compared to the rest of the industry. VVD is outperformed by 92.31% of its industry peers.
VVD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.5% | ||
| PM (TTM) | 2.46% | ||
| GM | 18.04% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VVD is still creating some value.
VVD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VVD has been increased compared to 5 years ago.
The debt/assets ratio for VVD is higher compared to a year ago.
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.
The Altman-Z score of VVD (0.87) is comparable to the rest of the industry.
VVD has a debt to FCF ratio of 14.13. This is a negative value and a sign of low solvency as VVD would need 14.13 years to pay back of all of its debts.
The Debt to FCF ratio of VVD (14.13) is better than 61.54% of its industry peers.
A Debt/Equity ratio of 1.55 is on the high side and indicates that VVD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.55, VVD is doing worse than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 14.13 | ||
| Altman-Z | 0.87 |
ROIC/WACC1.27
WACC4.53%
2.3 Liquidity
VVD has a Current Ratio of 0.91. 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 Current ratio value of 0.91, VVD is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that VVD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, VVD is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
VVD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.01%, which is quite good.
VVD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.31% yearly.
Looking at the last year, VVD shows a decrease in Revenue. The Revenue has decreased by -1.45% in the last year.
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)15.01%
EPS 3Y31.56%
EPS 5Y7.31%
EPS Q2Q%7.14%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y16.17%
Revenue growth 5Y10.45%
Sales Q2Q%-0.2%
3.2 Future
The Earnings Per Share is expected to grow by 7.38% on average over the next years.
The Revenue is expected to grow by 3.49% on average over the next years.
EPS Next Y7.74%
EPS Next 2Y8.34%
EPS Next 3Y8.65%
EPS Next 5Y7.38%
Revenue Next Year2.07%
Revenue Next 2Y3.09%
Revenue Next 3Y3.44%
Revenue Next 5Y3.49%
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 stable.
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 20.81, which indicates a rather expensive current valuation of VVD.
VVD's Price/Earnings ratio is rather expensive when compared to the industry. VVD is more expensive than 92.31% of the companies in the same industry.
VVD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
VVD is valuated correctly with a Price/Forward Earnings ratio of 13.84.
Based on the Price/Forward Earnings ratio, VVD is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, VVD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 13.84 |
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 61.54% of the companies listed in the same industry.
84.62% 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 | ||
| EV/EBITDA | 5.8 |
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)2.69
PEG (5Y)2.85
EPS Next 2Y8.34%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, VVD is a good candidate for dividend investing.
VVD's Dividend Yield is comparable with the industry average which is at 5.17.
VVD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
The dividend of VVD is nicely growing with an annual growth rate of 14.14%!
Dividend Growth(5Y)14.14%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
110.63% 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.
DP110.63%
EPS Next 2Y8.34%
EPS Next 3Y8.65%
FRA:VVD (7/11/2025, 7:00:00 PM)
30.8
+0.07 (+0.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners62.28%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap22.81B
Analysts76.8
Price Target36.42 (18.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend1.72
Dividend Growth(5Y)14.14%
DP110.63%
Div Incr Years4
Div Non Decr Years4
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)1.58%
PT rev (3m)-1.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 13.84 | ||
| P/S | 0.51 | ||
| P/FCF | 11 | ||
| P/OCF | 4.53 | ||
| P/B | 1.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.8 |
EPS(TTM)1.48
EY4.81%
EPS(NY)2.23
Fwd EY7.22%
FCF(TTM)2.8
FCFY9.09%
OCF(TTM)6.8
OCFY22.08%
SpS60.34
BVpS17.44
TBVpS-9.39
PEG (NY)2.69
PEG (5Y)2.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 8.52% | ||
| ROCE | 7.92% | ||
| ROIC | 5.75% | ||
| ROICexc | 8.05% | ||
| ROICexgc | 23.25% | ||
| OM | 7.5% | ||
| PM (TTM) | 2.46% | ||
| GM | 18.04% | ||
| FCFM | 4.64% |
ROA(3y)1.26%
ROA(5y)0.95%
ROE(3y)7.32%
ROE(5y)5.34%
ROIC(3y)5.04%
ROIC(5y)4.36%
ROICexc(3y)6.81%
ROICexc(5y)6.13%
ROICexgc(3y)18.27%
ROICexgc(5y)16.36%
ROCE(3y)6.95%
ROCE(5y)6.02%
ROICexcg growth 3Y15.28%
ROICexcg growth 5Y0.49%
ROICexc growth 3Y14.61%
ROICexc growth 5Y-0.23%
OM growth 3Y18.91%
OM growth 5Y3.17%
PM growth 3Y20.1%
PM growth 5Y1.34%
GM growth 3Y3.77%
GM growth 5Y1.11%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 14.13 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 96.55% | ||
| Cap/Sales | 6.63% | ||
| Interest Coverage | 4.55 | ||
| Cash Conversion | 78.45% | ||
| Profit Quality | 188.28% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.87 |
F-Score6
WACC4.53%
ROIC/WACC1.27
Cap/Depr(3y)95.76%
Cap/Depr(5y)89.42%
Cap/Sales(3y)6.68%
Cap/Sales(5y)6.46%
Profit Quality(3y)191.78%
Profit Quality(5y)437.08%
High Growth Momentum
Growth
EPS 1Y (TTM)15.01%
EPS 3Y31.56%
EPS 5Y7.31%
EPS Q2Q%7.14%
EPS Next Y7.74%
EPS Next 2Y8.34%
EPS Next 3Y8.65%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y16.17%
Revenue growth 5Y10.45%
Sales Q2Q%-0.2%
Revenue Next Year2.07%
Revenue Next 2Y3.09%
Revenue Next 3Y3.44%
Revenue Next 5Y3.49%
EBIT growth 1Y7.58%
EBIT growth 3Y38.14%
EBIT growth 5Y13.96%
EBIT Next Year98.78%
EBIT Next 3Y30.19%
EBIT Next 5Y18.78%
FCF growth 1Y10.91%
FCF growth 3Y13.48%
FCF growth 5Y7.99%
OCF growth 1Y0.58%
OCF growth 3Y16.98%
OCF growth 5Y10.29%