Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on VEOLIA ENVIRONNEMENT. We currently have 9 research reports from 2 professional analysts.
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Q3 16: weak top-line, compensated by cost cutting
03 Nov 16
Veolia released Q3 16 results. Revenues reached €18,288m (-3.2%, -1.2% at CER), EBITDA €2,206m (+2.7% and +5.1% at CER), EBIT €979m (+4%, +7.3% at CER) and net result €421m (+2.9%, +8.8% at CER). Net debt at 30 September reached €8.88bn (vs €8.98bn last year and €8.68bn at 30 June). The group reiterated its yearly targets, with a lower turnover goal though (flat turnover vs « slight increase », increase in EBITDA, free cash flow of at least €650m, net current result of at least €600m) and its FY18 targets announced in December last year.
Veolia is best Utility Company in Europe. Period
21 Sep 16
Veolia H1 2016 Top-Line growth was -1% L-f-L as Company had no new Orders and Sales were negatively impacted by drop in Construction billing (should slip to EUR 2 Bln from current EUR 2.5 Bln p.a. over the time) and lower Energy prices H2 2016 will be above H1 2016 at Veolia, thanks to EUR +200 Mln of new Orders (plus another EUR 300 Mln effective in 2017 = EUR 500 Mln total) and EUR -130 Mln of extra cost-cutting (after EUR -120 Mln in H1 2016 = EUR -300 Mln total this year) We expect 2016 Ebit at EUR 3.15 Bln (from EUR 3 Bln in 2015) and EUR 3.5 Bln in 2017 (both figures are revised up from EUR 3.1 Bln in 2016 and EUR 3.3 Bln in 2017 when we last met Company in May 2016) - Ebitda Margin was 13.2% in H1 2016 and will reach 13.5% by end of 2016 from 12.4% in H1 2015 (+ 110 Bps is massive for an Utility Company !)
H1 16 : a good set of results supporting our valuation
01 Aug 16
Veolia released H1 16 numbers. Revenues were down 2.9% to €11,956m (-1% at CER), EBITDA up +3.2% to €1,580m (+5.6% at CER), current EBIT up +5.3% to €749.7m (+8.2% at CER) and current net up +6.4% to €341.8m (+10.1% at CER). Net debt debt stood at €8,678m at the end of Q2 (€9.2bn a year ago, €8.3bn in Q1). The group confirmed its FY outlook (revenues and EBITDA growth, free cash flow over €650m, current net income over €600m). Lastly, the group announced the disposal of a 20% stake (from 50%) in Transdev to Caisse des Dépots (the co-owner of Transdev), with an option to sell the remaining 30%.
Small acquisition in the US in the industrial waste segment
15 Jun 16
Veolia has announced it has acquired in the US Chemours’ Sulfur Products division, which specialises in the recovery of sulphuric acid and gases in the refining process. These are regenerated into clean acid and steam which are used in a wide range of industrial activities. The turnover acquired is US$262m with 250 employees for a consideration of US$325m.
Q1 16 results in line
04 May 16
Revenues were down 3.4% to €6,089m (-1.7% at constant scope and forex), EBITDA up 3% to €840m (+5% on a constant basis), EBIT up 4.2% to €413m (+7.5%) and net income up 16% (excluding last year’s capital gains) to €173m. Net debt amounted to €8,265m vs €8,170m at year-end 2015 and €8,970m in Q1 15.
FY15 results confirm the group is back to normality
25 Feb 16
Veolia's FY15 results were disclosed. Revenues were up 4.5% to €24,965m (and +1.4% at CER), EBITDA up 11.3% to €2,997m (+8.1% at CER and +5.3% comparable at CER), current EBIT up 25% to €1,315m (+20.3% at CER, +18.6% comparable). Net debt reached €8,170m (vs €8,977m in Q3 and €8,311m a year ago). The dividend proposed will be €0.73 (vs €0.70). The outlook for the current year calls for revenue and EBITDA growth, a free cash flow of at least €650m and net income of at least €600m, in line with the trajectory of the 2016-18 business plan, which aims at reaching revenues of €27bn, an EBITDA of €3.5bn and net income of €800m at year-end 2018 with a c.€1bn free cash flow.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Taking the bull by the horns
15 Feb 17
Avon Rubber announced this morning that CEO Rob Rennie has left and been replaced with Paul McDonald, formerly managing director of Avon’s Dairy division. This news comes as a surprise and is likely to raise some questions over the CEO and CFO transition, with the CEO only being in post for just over a year. However, the group has appointed an executive already known to many who have followed the business, and as such should be seen as a good appointment with a track record of decisiveness and getting things done.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.