Author: admin

Make better investment decisions with Simply Wall St’s easy, visual tools that give you a competitive edge.

Veolia Environnement (ENXTPA:VIE) is back in the spotlight after a US labor complaint involving Teamsters Local 63, which highlighted potential risks around operating costs, reputation, and public contracts ahead of the next earnings update.

See our latest analysis for Veolia Environnement.

At a share price of €32.02, Veolia Environnement has posted a 30 day share price return of 5.29% and a 90 day share price return of 11.03%. Its 1 year total shareholder return of 20.56% and 5 year total shareholder return of 80.05% indicate momentum that has held up through both recent US workforce initiatives and the ongoing Teamsters complaint.

If labour issues and infrastructure demand are on your radar, it could be worth seeing what else is moving in essential services and utilities through our 24 power grid technology and infrastructure stocks.

With Veolia trading at €32.02 and indicators like a value score of 3 and an intrinsic discount estimate, the key question is whether current momentum leaves any upside on the table or if markets are already pricing in future growth.

With Veolia Environnement at €32.02 against a narrative fair value of €35.71, the current price sits below what this widely followed storyline implies.

Strong multi-year growth in Water Technologies and Hazardous Waste segments is being driven by rising health, resilience, and environmental compliance requirements worldwide, as reflected in Veolia’s record order book and robust +8.9% growth in booster activities. This is likely to support sustained revenue and EBITDA growth, underpinned by tightening global regulations on pollution and water safety.

Read the complete narrative.

Want to see what is behind that fair value gap? The narrative leans on steady revenue expansion, thicker profit margins, and a higher earnings multiple than many peers. The full story connects those moving parts into one valuation roadmap.

Result: Fair Value of €35.71 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, earnings pressure from flat tariffs in France and weaker France Municipal Waste revenue could quickly challenge the idea that Veolia’s current valuation gap will persist.

Find out about the key risks to this Veolia Environnement narrative.

If you set the story about future cash flows aside and just look at earnings, Veolia trades on a P/E of 19.4x, roughly in line with its 19.4x fair ratio and slightly below the 20.4x peer average, while sitting a touch above the 19.3x global industry level. That kind of tight clustering hints that much of the good news may already be in the price, so the key question is what would need to change for the market to shift that ratio meaningfully in either direction.

See what the numbers say about this price — find out in our valuation breakdown.

If you read this and feel the story should look different, you can put the data to work yourself and build a custom view in a few minutes: Do it your way.

A great starting point for your Veolia Environnement research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

If Veolia has your attention, do not stop here. Casting a wider net with focused screeners can surface opportunities you might regret missing later.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include VIE.PA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com