The technical chart pattern of stocks in Veolia Environnement strongly argues for an exit on the downside from the current accumulation zone.
Summary
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company's profit outlook over the next few years is a strong asset.
● With regards to fundamentals, the enterprise value to sales ratio is at 0.89 for the current period. Therefore, the company is undervalued.
● The company is one of the best yield companies with high dividend expectations.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Analyst opinion has improved significantly over the past four months.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company does not generate enough profits, which is an alarming weak point.
● The company is in debt and has limited leeway for investment
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● The group usually releases earnings worse than estimated.
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Veolia Environnement is the world leader in environmental management services. Net sales break down by activity as follows:
- water-related services (40.6%; No. 1 worldwide): water resources management, drinking water distribution and delivery, wastewater collection, treatment and recovery, engineering, design, construction of water treatment facilities and customer relationship management, etc.;
- waste management services (32.4%; no. 1 worldwide): collection, treatment and recycling of liquid, solid, non-hazardous and hazardous waste, waste treatment and recovery through composting, energy recovery from waste, etc. Veolia Environnement also provides urban waste management services (maintenance and cleaning of public spaces, provision of mechanized street cleaning and façade treatment services), maintenance of industrial sites, and dismantling of industrial facilities and equipment at the end of their useful life;
- energy services (27%; No. 1 in Europe): delegated management of urban heating and air conditioning networks, management of thermal and multi-technique services (operation of heating systems, facility design, construction, and maintenance, etc.) and industrial services (industrial process analysis, production equipment operation, service, and maintenance), general management of buildings and public lighting.
Net sales are distributed geographically as follows: France (21.5%), Europe (41.9%), North America (7.4%), Asia (5.6%), Africa and the Middle East (4.9%), Pacific (4.3%), Latin America (4%) and other (10.4%).