Environnement S.A., branded as Veolia, is a French transnational company with
activities in three main service and utility areas traditionally managed by
public authorities – water management, waste management and energy services.
price tells us that the situation hasn’t been the best there over the
long-term. However, since 2009 the returns have been ok, but it also means you
need to time your investment very well as the stock is extremely volatile in
relation to cycles. A thing common to all the waste management
stocks we analysed by now.
market capitalization is EUR 13 billion, its debt is 10 billion and year
finance costs of 400 million. This means the company is highly leveraged, its
business requires constant capex investments in a highly competitive
environment. Given the leverage, high investments necessary, policy related
issues etc. it is another high risk investment and we can see that by taking a
look at the stock performance over the last 20 years.
However, if you
time your investment well and you invest when the trend turns positive, you can
do really good by taking advantage of those dividend increases.
This is another typical waste management company with high leverage and dependent on the economy, contracts and consumption. It looks like these are sustainable, recycling, waste management companies oriented to the future, but it is mostly utilities in a highly competitive environment.