Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

The Market Seems To Believe Veolia Has Turned The Corner

France-based global utility Veolia Environnement (VE) has given investors a pretty wild ride. The company's excessive ambition for growth stoked a lot of bullish sentiment early in the decade, but the combination of Europe's deep recession and sloppy execution lead to disappointing margins, cash flows, and investors.

Veolia management started taking turnaround efforts seriously in 2013, pushing ahead with cost cuts, asset sales, and a restructuring of the company's operating priorities. The company still has a lot to do if its going to produce margins on par with its close peer Suez Environnement (OTCPK:SZEVY), let alone American comps like American States Water (NYSE:AWR) or Waste Management (NYSE:WM), but the better than 100% trough-to-peak move...

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