Veolia Environnement shares have returned to important technical levels around 18.23 EUR based on weekly price data. The timing seems attractive to be a buyer of this stock.
Summary
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 18.23 EUR in weekly data.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● As regards fundamentals, the enterprise value to sales ratio is at 0.76 for the current period. Therefore, the company is undervalued.
Weaknesses
● The company sustains low margins.
● The group shows a rather high level of debt in proportion to its EBITDA.
● The company's earnings releases usually do not meet expectations.
● Below the resistance at 22.8 EUR, the stock shows a negative configuration when looking looking at the weekly chart.
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%).