Veolia Environnement S.A.
Veolia Environnement S.A. Fundamental Analysis
Veolia Environnement S.A. (VEOEF) shows weak financial fundamentals with a PE ratio of 20.97, profit margin of 2.74%, and ROE of 13.90%. The company generates $44.2B in annual revenue with weak year-over-year growth of -1.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VEOEF's fundamental strength across five key dimensions:
Efficiency Score
WeakVEOEF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVEOEF trades at attractive valuation levels.
Growth Score
ModerateVEOEF shows steady but slowing expansion.
Financial Health Score
WeakVEOEF carries high financial risk with limited liquidity.
Profitability Score
WeakVEOEF struggles to sustain strong margins.
Key Financial Metrics
Is VEOEF Expensive or Cheap?
P/E Ratio
VEOEF trades at 20.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VEOEF's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values Veolia Environnement S.A. at 3.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.29 times EBITDA. This is generally considered low.
How Well Does VEOEF Make Money?
Net Profit Margin
For every $100 in sales, Veolia Environnement S.A. keeps $2.74 as profit after all expenses.
Operating Margin
Core operations generate 7.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.90 in profit for every $100 of shareholder equity.
ROA
Veolia Environnement S.A. generates $1.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Veolia Environnement S.A. generates limited operating cash flow of $4.05B, signaling weaker underlying cash strength.
Free Cash Flow
Veolia Environnement S.A. produces free cash flow of $1.65B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.26 in free cash annually.
FCF Yield
VEOEF converts 6.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How VEOEF Stacks Against Its Sector Peers
| Metric | VEOEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.97 | 26.72 | Better (Cheaper) |
| ROE | 13.90% | 1297.00% | Weak |
| Net Margin | 2.74% | -38908.00% (disorted) | Weak |
| Debt/Equity | 4.96 | 0.72 | Weak (High Leverage) |
| Current Ratio | 0.86 | 10.10 | Weak Liquidity |
| ROA | 1.72% | -1511770.00% (disorted) | Weak |
VEOEF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Veolia Environnement S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.04%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
0.23%
Industry Style: Cyclical, Value, Infrastructure
GrowingFCF CAGR
30.07%
Industry Style: Cyclical, Value, Infrastructure
High Growth