veolia stock

Veolia Environment Stock Analysis – the 3.51% dividend is not high enough for me

Veolia Environment Stock Analysis is part of a full Waste Management stocks sector investing analysis alongside a list of 15 waste management stocks, all analyzed.

Veolia Environment Stock Analysis

Veolia 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.

Veolia’s stock 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.

Veolia Environment stock analysis - Veolia stock price
Veolia Environment stock analysis – Veolia stock price

Veolia’s stock 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.

Veolia stock dividend
Veolia stock dividend

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.

Sven Carlin Ph.D., the author, is an independent stock market researcher and investor managing the Sven Carlin Stock Market Research Platform.

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