Rankings Utilities & power Veolia Environnement
Veolia Environnement
78
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Multiples vs own history and peers−7
- Debt−5
- ROIC−3
Strengths
- Estimates+2
- Diversified base+2
- Validation+1
How the score is built
From 100 to 78, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 33.20 EUR
- Median analyst target
- 37.90 EUR
- Upside to median
- +14.2%
- Analysts
- 19
- Target range
- 30.00 – 45.30 EUR
- 52-week change
- +15%
- P/E (trailing)
- 21.0
- Forward P/E
- 13.1
- PEG
- 1.41
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−8 of −30
- −3ROICROIC is 4.9% vs a WACC of 5.2%, i.e. below the cost of capital. ROCE has risen year by year from 4.9% (2021) to 8.2% TTM, though, and the net margin from 1.4% to 2.6%.
- −3Quality of growthOrganic revenue growth only 1.5% in H1 2026 (excluding energy prices), and revenue has been flat since 2023 (€45.4bn → 44.5bn). EBITDA rose 5.0% organically and the margin 70 bp to 16.0%, but the lift comes mainly from efficiencies (€195m in H1).
- −2Capital allocationClean Earth (US hazardous waste) was bought for $3bn and closed in early June 2026, funded with debt. Synergies ($120m in year four) only start in 2027, and the deal only contributes to earnings from 2027.
Price
Today's multiples against the company's own history and its peers. · 1 finding−7 of −35
- −7Multiples vs own history and peersForward P/E 12.4 vs 12.3–14.1 in 2022–25; EV/EBITDA 7.8 vs 7.3–8.1; P/FCF 10.5 vs 9.6–12.4 (14 after lease payments). The price is in the middle of the normal range since the Suez merger and in line with European utilities, but the stock is leveraged (EV €49.7bn vs a market value of €22.8bn). The earlier forward P/E of 18.7 was wrong.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−12 of −35
- −5DebtNet debt rose from €19.7bn to 24.5bn in H1 (Clean Earth €2.5bn, dividend €1.4bn), and leverage is slightly above its own 3x target. Moody's expects adjusted net debt of about €29bn at the peak in 2026. Gross debt/EBITDA 5.35 and current ratio 0.82; Baa1/BBB with a stable outlook.
- −3Cash flowVeolia's own net FCF was −€288m in H1 (seasonal, +€164m vs a year earlier). FCF after leases was €1.6bn TTM, and dividends (€1.2bn) plus buybacks (€0.4bn) use the whole amount, so acquisitions are debt-funded.
- −3Customers and execution (Milwaukee)Milwaukee's sewerage district MMSD voted unanimously on 28/9/2026 for Jacobs as the new operator from 2028, after 18 years with Veolia (about $700m over 10 years; Jacobs bid $54m lower). Operations had been criticised, and Veolia's lawsuit over the tender is decided around January 2027. The amount is small, but the case hurts its reputation in the US municipal market.
- −1
Plus
Only documented strengths. · 3 findings+5 of +15
- +2Estimates2026 guidance raised to at least 8% growth in net profit at constant currency, now including Clean Earth. Adjusted net profit rose 10.4% to €837m in H1.
- +2Diversified baseRevenue of €44.5bn spread across Europe (19.4), the Americas/Asia/Africa-Middle East (11.5), France and hazardous waste (8.9) and water technologies (4.8), mainly in long municipal and industrial contracts.
- +1ValidationMoody's (Baa1) and S&P (BBB) have affirmed the rating with a stable outlook after the Clean Earth deal; Moody's calls it a good strategic fit.
Caveats
What the score does not capture, or where the data is weak.
ROIC (4.9%) is below the cost of capital, and organic growth is only 1.5%; the earnings lift comes from efficiency gains. Net debt has risen to €24.5bn after Clean Earth, and Veolia's own net FCF was negative in H1. The Milwaukee contract is lost from 2028 (Veolia's lawsuit to be decided around January 2027). Insider trading and French tariff conditions have not been examined.
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