Veolia: Why 2026E Is Likely To Be Excellent

Wolf ReportInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummaryVeolia remains a top-tier defensive investment, excelling in water, waste, and energy with strong recurring revenues and inflation-protected cash flows.VEOEY exceeded 2025 strategic targets two years early, achieving 150 bps margin expansion, 9.5% ROIC, and robust organic growth in high-potential segments.The company offers a 5%+ dividend yield, targets 4-8% annual dividend growth, and maintains a conservative capital structure with limited key risks.With a €36.5/share price target and 16.4% annualized upside, I reiterate a 'BUY' rating, citing sector leadership, Suez synergies, and attractive valuation.Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More » Teamjackson/iStock Editorial via Getty Images Veolia (VEOEY) has been one of my primary buys for some time. I thought the company, as of recently, was on the "way up", given the trends we were seeing with the stock hitting native share prices ofThis article was written byWolf Report35.02K FollowersFollowWolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.He covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.Analyst’s Disclosure: I/we have a beneficial long position in the shares of VEOLIA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.