Veolia Environnement SA VIE

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€28.91 −0.01 (0.03%)

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As of Apr 25, 2024 4:06pm Delayed Price Closed

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Company Report

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Veolia: US Deep Dive Highlights Its Good Positioning and High Profitable Growth Potential

Tancrede Fulop Apr 22, 2024

No-moat Veolia held a presentation of its US business in New York on April 18, a field trip to its largest water treatment facility in New Jersey and to its largest US hazardous waste facility on April 19 in Port Arthur. We attended all of those, along with a few investors and another sell-side analyst. We confirm our EUR 32.50 per share fair value estimate. Shares are undervalued as the market neglects Veolia’s structural growth drivers.

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Price vs Fair Value

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VIE is trading at a 11% discount.

Price

€29.00

Apr 23, 2024

Fair Value

€16.60

Apr 17, 2024

Uncertainty

Medium

1-Star Price: €72.27
5-Star Price: €17.14
Economic Moat: Cyhk
Capital Allocation: Qmssbqdc

Bulls Say, Bears Say

Bulls

The acquisition of Suez will be significantly value-accretive for Veolia thanks to high synergies despite the high price paid. To get the comparable international assets through bolt-on acquisitions would have been much more costly.

Bears

The integration of Suez will be dilutive on returns on invested capital.

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News

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Suez Inks China Desalination-Plant Contract

Global News Select Apr 6, 2023 4:56pm

Trading Information

Previous Close Price: €28.92
Day Range: €28.59–29.37
52-Week Range: €24.86–30.70
Bid/Ask: €28.79 / €29.00
Market Cap: €20.67 Bil
Volume/Avg: 1.9 Mil / 1.8 Mil

Key Statistics

Price/Earnings (Normalized): 22.35
Price/Sales: 0.47
Dividend Yield (Trailing): 3.86%
Dividend Yield (Forward): 4.31%
Total Yield: 3.86%

Company Profile

Veolia is the largest water company globally and a leading player in France. It is also involved in waste management with significant exposure to France, the United Kingdom, Germany, the United States, and Australia. The third pillar of the group is energy services, giving the group significant exposure to Central Europe. Veolia started to refocus its activities in 2011, leading to the exit of almost half of its countries and its transport activity The integration of most activities of the historical rival Suez in 2022 drove a turnover increase of nearly 40%.

Sector: Industrials
Industry: Waste Management
Stock Style Box: Large Core
Total Number of Employees: 218,288
Website: https://www.veolia.com

Competitors

American Water Works Co Inc

AWK

Valuation

Metric	VIE	AWK
Price/Earnings (Normalized)	22.35	25.44
Price/Book Value	2.39	2.41
Price/Sales	0.47	5.53
Price/Cash Flow	4.97	13.03

Price/Earnings

VIE

AWK

Financial Strength

Metric	VIE	AWK
Quick Ratio	0.85	0.49
Current Ratio	0.93	0.65
Interest Coverage	3.14	3.44

Quick Ratio

VIE

AWK

Profitability

Metric	VIE	AWK
Return on Assets (Normalized)	1.84%	3.24%
Return on Equity (Normalized)	15.64%	10.12%
Return on Invested Capital (Normalized)	5.45%	5.82%

Return on Assets

VIE

AWK

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