Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, French waste management and water supply company Veolia Environnement (NYSE: VE ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Veolia's business and see what CAPS investors are saying about the stock right now.
Veolia facts
| Headquarters (Founded) |
Paris (1853) |
| Market Cap |
$6.4 billion |
| Industry |
Multi-utilities |
| Trailing-12-Month Revenue |
$49.5 billion |
| Management |
CEO Antoine Frerot (since 2009)
CFO Pierre-Francois Riolacci (since 2010) |
| Return on Equity (Average, Past 3 Years) |
4% |
| Cash/Debt |
$8.6 billion / $28.3 billion |
| Dividend Yield |
12.7% |
| Competitors |
General Electric (NYSE: GE )
Siemens (NYSE: SI )
Waste Management (NYSE: WM ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96.5% of the 971 members who have rated Veolia believe the stock will outperform the S&P 500 going forward. These bulls include Clint35 and NeuroNerd.
Just last month, Clint35 wrote that Veolia was just too beaten down to pass up: "Very cheap with a good dividend. ... I just hope they don't have to cut it. But even if they do the stock is so cheap the dividend is just a bonus."
Veolia even sports a particularly paltry price-to-cash flow of 1.5. That represents a clear discount to competitors like GE (5.1), Siemens (8.6), and Waste Management (6.3).
CAPS member NeuroNerd elaborates on the bargain opportunity:
An international giant providing essential services (water, garbage collection, energy, etc) trading for a cheaper price than during the financial crisis? With water looking set to be worth its weight in [insert favorite commodity here] over the long run? YES. Euro concerns probably overblown -- a quarter of revenues coming in from outside the EU, and another half from Germany and France, the strongest members of the EU. Sure, they're levered to the hilt and the dividend may take a cut, but ... I think the upside's a heckuva lot more compelling than the downside from here.
What do you think about Veolia, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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