VIE FP

Veolia Environnement SA

Utilities, Energy


Presented:09/15/2017
Price:€19.73
Cap:$0.00B
Current Price:€29.85
Cap:$23.79B

Presented

Date09/15/2017
Price€19.73
Market Cap$0.00B
Ent Value$0.00B
P/E Ratio40.27x
Book Value€11.11
Div Yield4.05%
Shares O/S0.00M
Ave Daily Vol1,848,694
Short IntN/A

Current

Price€29.85
Market Cap$23.79B
Veolia Environnement SA engages in the management of water supplies and distribution systems and provides waste management services. It operates through the following business segments: Water, Environmental Services and Energy Services. The Water segment integrates drinking water and waste water activities such as water distribution, water and waste water treatment, industrial process water, and manufacture of water treatment equipment and systems. The Environmental Services segment collects, processes, and disposes household, trade, and industrial waste. The Energy Services segment includes heat production and distribution, energy optimization and related services, and electricity production. The company was founded in April 1999 and is headquartered in Nantes, France.

Publicly traded companies mentioned herein: Suez (SEV FP), Veolia Environnement SA (VIE FP)

Highlights

French water treatment and services group Veolia Environnement (VIE FP) is a “classic European utility” with long-term contracts and a self-help opportunity. The presenter is long at €19.73 and sees the potential for investors to realize a 30-35% total return over the next two years as CEO Antoine Frérot continues his cost cutting mission. While the overall business is complicated due to its global scale and various business units (VIE operates in scores of municipal markets globally), downside risk should be limited due to Frérot’s previous success cutting costs and the top line is growing. If his estimates are accurate, VIE’s EBITDA should grow 10-12% and EPS could rise from €90-1.00 to north of €1.50 over the next 18-24 months.

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