VEOLIA ENVIRONNEMENT (VVD.DE) Stock Fundamental Analysis
FRA:VVD - Deutsche Boerse Ag - FR0000124141 - Common Stock - Currency: EUR
Overall VVD gets a fundamental rating of 4 out of 10. We evaluated VVD against 14 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. VVD is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years VVD always reported a positive cash flow from operatings.
1.2 Ratios
VVD's Return On Assets of 1.51% is on the low side compared to the rest of the industry. VVD is outperformed by 85.71% of its industry peers.
VVD has a worse Return On Equity (8.52%) than 71.43% of its industry peers.
With a Return On Invested Capital value of 5.75%, VVD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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 6.50%.
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 worse Profit Margin (2.46%) than 85.71% of its industry peers.
VVD's Profit Margin has been stable in the last couple of years.
VVD has a worse Operating Margin (7.50%) than 71.43% 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 85.71% 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
VVD 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 VVD has been increased compared to 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.
Looking at the Altman-Z score, with a value of 0.87, VVD is in line with its industry, outperforming 42.86% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 14.13, VVD is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
VVD has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VVD (1.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 14.13 | ||
| Altman-Z | 0.87 |
ROIC/WACC1.27
WACC4.52%
2.3 Liquidity
A Current Ratio of 0.91 indicates that VVD may have some problems paying its short term obligations.
VVD's Current ratio of 0.91 is on the low side compared to the rest of the industry. VVD is outperformed by 64.29% of its industry peers.
A Quick Ratio of 0.86 indicates that VVD may have some problems paying its short term obligations.
The Quick ratio of VVD (0.86) is worse than 71.43% of its industry peers.
| 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.
The Revenue has decreased by -1.45% in the past year.
Measured over the past years, VVD shows a quite strong growth in Revenue. The Revenue has been growing by 10.45% on average per year.
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
VVD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
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.
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
Based on the Price/Earnings ratio of 20.78, the valuation of VVD can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VVD indicates a rather expensive valuation: VVD more expensive than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.93, VVD is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.82, which indicates a correct valuation of VVD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VVD is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.78, VVD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
VVD's Enterprise Value to EBITDA ratio is in line with the industry average.
VVD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VVD is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.99 | ||
| 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)2.84
EPS Next 2Y8.34%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, VVD is a good candidate for dividend investing.
VVD's Dividend Yield is comparable with the industry average which is at 5.04.
VVD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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.
VVD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP110.63%
EPS Next 2Y8.34%
EPS Next 3Y8.65%
FRA:VVD (7/25/2025, 7:00:00 PM)
30.75
+0.05 (+0.16%)
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 Cap22.78B
Analysts76.8
Price Target36.41 (18.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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)-0.03%
PT rev (3m)0.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 13.82 | ||
| P/S | 0.51 | ||
| P/FCF | 10.99 | ||
| P/OCF | 4.52 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.8 |
EPS(TTM)1.48
EY4.81%
EPS(NY)2.23
Fwd EY7.24%
FCF(TTM)2.8
FCFY9.1%
OCF(TTM)6.8
OCFY22.12%
SpS60.33
BVpS17.43
TBVpS-9.39
PEG (NY)2.69
PEG (5Y)2.84
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
WACC4.52%
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%