VEOLIA ENVIRONNEMENT (VIE.PA)

FR0000124141 - Common Stock

28.49  -0.06 (-0.21%)

Fundamental Rating

4

Overall VIE gets a fundamental rating of 4 out of 10. We evaluated VIE against 12 industry peers in the Multi-Utilities industry. There are concerns on the financial health of VIE while its profitability can be described as average. While showing a medium growth rate, VIE is valued expensive at the moment.



4

1. Profitability

1.1 Basic Checks

In the past year VIE was profitable.
VIE had a positive operating cash flow in the past year.
VIE had positive earnings in each of the past 5 years.
In the past 5 years VIE always reported a positive cash flow from operatings.

1.2 Ratios

VIE has a worse Return On Assets (1.29%) than 66.67% of its industry peers.
VIE has a Return On Equity of 7.61%. This is in the lower half of the industry: VIE underperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.25%, VIE is doing worse than 75.00% of the companies in the same industry.
VIE had an Average Return On Invested Capital over the past 3 years of 4.13%. This is below the industry average of 6.47%.
The 3 year average ROIC (4.13%) for VIE is below the current ROIC(5.25%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.29%
ROE 7.61%
ROIC 5.25%
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

VIE has a Profit Margin of 2.07%. This is amonst the worse of the industry: VIE underperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of VIE has grown nicely.
The Operating Margin of VIE (6.87%) is worse than 66.67% of its industry peers.
In the last couple of years the Operating Margin of VIE has remained more or less at the same level.
VIE's Gross Margin of 17.20% is on the low side compared to the rest of the industry. VIE is outperformed by 91.67% of its industry peers.
In the last couple of years the Gross Margin of VIE has remained more or less at the same level.
Industry RankSector Rank
OM 6.87%
PM (TTM) 2.07%
GM 17.2%
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

2. Health

2.1 Basic Checks

VIE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for VIE has been increased compared to 1 year ago.
The number of shares outstanding for VIE has been increased compared to 5 years ago.
The debt/assets ratio for VIE is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.86, we must say that VIE is in the distress zone and has some risk of bankruptcy.
VIE has a Altman-Z score (0.86) which is comparable to the rest of the industry.
The Debt to FCF ratio of VIE is 15.17, which is on the high side as it means it would take VIE, 15.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VIE (15.17) is better than 75.00% of its industry peers.
VIE has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
VIE has a Debt to Equity ratio of 1.68. This is in the lower half of the industry: VIE underperforms 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 15.17
Altman-Z 0.86
ROIC/WACC1.2
WACC4.38%

2.3 Liquidity

VIE has a Current Ratio of 0.93. This is a bad value and indicates that VIE is not financially healthy enough and could expect problems in meeting its short term obligations.
VIE's Current ratio of 0.93 is in line compared to the rest of the industry. VIE outperforms 50.00% of its industry peers.
A Quick Ratio of 0.88 indicates that VIE may have some problems paying its short term obligations.
VIE's Quick ratio of 0.88 is in line compared to the rest of the industry. VIE outperforms 50.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.88

5

3. Growth

3.1 Past

VIE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.30%, which is quite impressive.
The Earnings Per Share has been growing by 15.60% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.75% in the past year.
Measured over the past years, VIE shows a quite strong growth in Revenue. The Revenue has been growing by 11.81% on average per year.
EPS 1Y (TTM)30.3%
EPS 3Y104.35%
EPS 5Y15.6%
EPS Q2Q%-15.15%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y20.36%
Revenue growth 5Y11.81%
Sales Q2Q%-0.41%

3.2 Future

VIE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.39% yearly.
Based on estimates for the next years, VIE will show a small growth in Revenue. The Revenue will grow by 4.05% on average per year.
EPS Next Y13.1%
EPS Next 2Y11.82%
EPS Next 3Y10.75%
EPS Next 5Y10.39%
Revenue Next Year0.63%
Revenue Next 2Y2.19%
Revenue Next 3Y3.11%
Revenue Next 5Y4.05%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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.

3

4. Valuation

4.1 Price/Earnings Ratio

VIE is valuated rather expensively with a Price/Earnings ratio of 22.09.
Based on the Price/Earnings ratio, VIE is valued more expensive than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.19, VIE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.81, VIE is valued correctly.
Based on the Price/Forward Earnings ratio, VIE is valued expensively inside the industry as 91.67% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 20.63. VIE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.09
Fwd PE 13.81

4.2 Price Multiples

VIE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VIE is more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VIE is valued a bit cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.91
EV/EBITDA 5.66

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.69
PEG (5Y)1.42
EPS Next 2Y11.82%
EPS Next 3Y10.75%

5

5. Dividend

5.1 Amount

VIE has a Yearly Dividend Yield of 4.34%, which is a nice return.
Compared to an average industry Dividend Yield of 5.12, VIE has a dividend in line with its industry peers.
VIE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 4.34%

5.2 History

The dividend of VIE 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

134.58% of the earnings are spent on dividend by VIE. This is not a sustainable payout ratio.
VIE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP134.58%
EPS Next 2Y11.82%
EPS Next 3Y10.75%

VEOLIA ENVIRONNEMENT

EPA:VIE (7/16/2024, 5:35:15 PM)

28.49

-0.06 (-0.21%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.39B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.34%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 22.09
Fwd PE 13.81
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.69
PEG (5Y)1.42
Profitability
Industry RankSector Rank
ROA 1.29%
ROE 7.61%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.87%
PM (TTM) 2.07%
GM 17.2%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.93
Quick Ratio 0.88
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.3%
EPS 3Y104.35%
EPS 5Y
EPS Q2Q%
EPS Next Y13.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.75%
Revenue growth 3Y20.36%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y