VEOLIA ENVIRONNEMENT (VIE.PA)
FR0000124141 - Common Stock
Overall VIE gets a fundamental rating of 4 out of 10. We evaluated VIE against 13 industry peers in the Multi-Utilities industry. While VIE is still in line with the averages on profitability rating, there are concerns on its financial health. VIE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VIE had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 1.41%, VIE is doing worse than 61.54% of the companies in the same industry.
With a Return On Equity value of 8.64%, VIE is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.54%, VIE is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VIE is in line with the industry average of 4.93%.
The 3 year average ROIC (3.66%) for VIE is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 8.64% | ||
| ROIC | 4.54% |
ROA(3y)0.64%
ROA(5y)0.88%
ROE(3y)3.53%
ROE(5y)5.5%
ROIC(3y)3.66%
ROIC(5y)4.26%
1.3 Margins
VIE has a Profit Margin (2.21%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VIE has grown nicely.
Looking at the Operating Margin, with a value of 6.46%, VIE is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
VIE's Operating Margin has been stable in the last couple of years.
VIE has a Gross Margin of 16.91%. This is in the lower half of the industry: VIE underperforms 69.23% of its industry peers.
VIE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.46% | ||
| PM (TTM) | 2.21% | ||
| GM | 16.91% |
OM growth 3Y0.39%
OM growth 5Y0.17%
PM growth 3Y-10.11%
PM growth 5Y4.66%
GM growth 3Y0.58%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIE is destroying value.
The number of shares outstanding for VIE has been increased compared to 1 year ago.
Compared to 5 years ago, VIE has more shares outstanding
VIE has a better debt/assets ratio than last year.
2.2 Solvency
VIE has an Altman-Z score of 0.86. This is a bad value and indicates that VIE is not financially healthy and even has some risk of bankruptcy.
VIE has a Altman-Z score of 0.86. This is in the lower half of the industry: VIE underperforms 69.23% of its industry peers.
The Debt to FCF ratio of VIE is 16.40, which is on the high side as it means it would take VIE, 16.40 years of fcf income to pay off all of its debts.
VIE has a Debt to FCF ratio of 16.40. This is in the better half of the industry: VIE outperforms 61.54% of its industry peers.
VIE has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
VIE has a Debt to Equity ratio of 1.82. This is in the lower half of the industry: VIE underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 16.4 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.95
WACC4.77%
2.3 Liquidity
VIE has a Current Ratio of 0.94. This is a bad value and indicates that VIE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of VIE (0.94) is worse than 61.54% 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 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
VIE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 185.71%, which is quite impressive.
VIE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.70% yearly.
The Revenue has grown by 29.63% in the past year. This is a very strong growth!
The Revenue has been growing by 11.56% on average over the past years. This is quite good.
EPS 1Y (TTM)185.71%
EPS 3Y-1.3%
EPS 5Y12.7%
EPS growth Q2Q117.48%
Revenue 1Y (TTM)29.63%
Revenue growth 3Y16.41%
Revenue growth 5Y11.56%
Revenue growth Q2Q12.67%
3.2 Future
The Earnings Per Share is expected to grow by 15.54% on average over the next years. This is quite good.
VIE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.52% yearly.
EPS Next Y23.24%
EPS Next 2Y20.81%
EPS Next 3Y17.29%
EPS Next 5Y15.54%
Revenue Next Year10.85%
Revenue Next 2Y6.7%
Revenue Next 3Y5.91%
Revenue Next 5Y5.52%
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 accelerating.
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 20.85 indicates a rather expensive valuation of VIE.
Based on the Price/Earnings ratio, VIE is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
VIE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.54.
The Price/Forward Earnings ratio is 13.15, which indicates a correct valuation of VIE.
Based on the Price/Forward Earnings ratio, VIE is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
VIE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 19.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VIE is on the same level as its industry peers.
VIE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VIE is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.63 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VIE's earnings are expected to grow with 17.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)1.64
EPS Next 2Y20.81%
EPS Next 3Y17.29%
5. Dividend
5.1 Amount
VIE has a Yearly Dividend Yield of 3.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.44, VIE is paying slightly less dividend.
VIE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
5.2 History
On average, the dividend of VIE grows each year by 6.93%, which is quite nice.
Dividend Growth(5Y)6.93%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VIE pays out 174.51% of its income as dividend. This is not a sustainable payout ratio.
VIE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP174.51%
EPS Next 2Y20.81%
EPS Next 3Y17.29%
VEOLIA ENVIRONNEMENT
EPA:VIE (11/30/2023, 5:29:48 PM)
28.98
+0.3 (+1.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.43B
Analysts75.79
Price Target34.2 (18.01%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
Dividend Growth(5Y)6.93%
DP174.51%
Div Incr Years1
Div Non Decr Years1
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
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
PT rev (1m)-1.31%
PT rev (3m)-0.99%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 13.15 | ||
| P/S | 0.45 | ||
| P/FCF | 11.63 | ||
| P/OCF | 4.36 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.66 |
EPS(TTM)1.39
EY4.8%
EPS(NY)2.2
Fwd EY7.61%
FCF(TTM)2.49
FCFY8.6%
OCF(TTM)6.65
OCFY22.94%
SpS64.48
BVpS16.46
TBVpS-12.12
PEG (NY)0.9
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 8.64% | ||
| ROCE | 6.85% | ||
| ROIC | 4.54% | ||
| ROICexc | 6.01% | ||
| ROICexgc | 15.7% | ||
| OM | 6.46% | ||
| PM (TTM) | 2.21% | ||
| GM | 16.91% | ||
| FCFM | 3.87% |
ROA(3y)0.64%
ROA(5y)0.88%
ROE(3y)3.53%
ROE(5y)5.5%
ROIC(3y)3.66%
ROIC(5y)4.26%
ROICexc(3y)5.39%
ROICexc(5y)6.04%
ROICexgc(3y)14.27%
ROICexgc(5y)15.59%
ROCE(3y)5.51%
ROCE(5y)6.44%
ROICexcg growth 3Y-10.39%
ROICexcg growth 5Y-2.99%
ROICexc growth 3Y-8.48%
ROICexc growth 5Y-3.58%
OM growth 3Y0.39%
OM growth 5Y0.17%
PM growth 3Y-10.11%
PM growth 5Y4.66%
GM growth 3Y0.58%
GM growth 5Y-0.81%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 16.4 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 87.1% | ||
| Cap/Sales | 6.44% | ||
| Interest Coverage | 4.3 | ||
| Cash Conversion | 74.42% | ||
| Profit Quality | 175.22% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 0.86 |
F-Score6
WACC4.77%
ROIC/WACC0.95
Cap/Depr(3y)82.46%
Cap/Depr(5y)82.39%
Cap/Sales(3y)6.25%
Cap/Sales(5y)6.12%
Profit Quality(3y)599.04%
Profit Quality(5y)477.22%
Growth
EPS 1Y (TTM)185.71%
EPS 3Y-1.3%
EPS 5Y12.7%
EPS growth Q2Q117.48%
EPS Next Y23.24%
EPS Next 2Y20.81%
EPS Next 3Y17.29%
EPS Next 5Y15.54%
Revenue 1Y (TTM)29.63%
Revenue growth 3Y16.41%
Revenue growth 5Y11.56%
Revenue growth Q2Q12.67%
Revenue Next Year10.85%
Revenue Next 2Y6.7%
Revenue Next 3Y5.91%
Revenue Next 5Y5.52%
EBIT growth 1Y37.69%
EBIT growth 3Y16.86%
EBIT growth 5Y11.75%
EBIT Next Year124.85%
EBIT Next 3Y36.24%
EBIT Next 5Y23.79%
FCF growth 1Y1.33%
FCF growth 3Y-1.75%
FCF growth 5Y6.98%
OCF growth 1Y39.47%
OCF growth 3Y10.11%
OCF growth 5Y10.96%