ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Veolia Environnement's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 4.74%.
As of today (2026-06-25), Veolia Environnement's WACC % is 6.63%. Veolia Environnement's ROIC % is 4.62% (calculated using TTM income statement data).
Veolia Environnement earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Veolia Environnement's WACC % is 6.63%. Veolia Environnement's ROIC % is 4.62% (calculated using TTM income statement data).
Veolia Environnement earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Waste Management subindustry, Veolia Environnement's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Veolia Environnement ROIC % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Veolia Environnement's ROIC % distribution charts can be found below:
* The bar in red indicates where Veolia Environnement's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Veolia Environnement (MEX:VIEN) has a ROIC % of 4.74% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Veolia Environnement and its competitors.
Is Veolia Environnement's ROIC % too high?
Veolia Environnement's current ROIC % is 4.74%. The Waste Management industry median ROIC % is 3.53. Veolia Environnement's value of 4.74% is 34.3% above this industry median. Overall, Veolia Environnement has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Veolia Environnement's ROIC % compare to WM and RSG?
Veolia Environnement's ROIC % of 4.74% can be compared against companies in the Waste Management industry. The industry median ROIC % is 3.53. Veolia Environnement's value of 4.74% is 34.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Waste Management company?
The median ROIC % among Waste Management companies is 3.53, based on 246 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Veolia Environnement's current ROIC % of 4.74% is 34.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Veolia Environnement and its competitors. For the Waste Management industry, the median ROIC % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Veolia Environnement's current ROIC % is 4.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Veolia Environnement stock overvalued right now?
Veolia Environnement (MEX:VIEN) has a current ROIC % of 4.74%. The stock's GF Value™ is MXN584.65, compared to a current price of MXN719.25 — trading 23% above its estimated fair value. The current ROIC % is 4.74% and 34.3% above the Waste Management industry median of 3.53. Veolia Environnement's overall GF Score™ is 85/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Veolia Environnement (MEX:VIEN), the current ROIC % is 4.74% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Veolia Environnement (MEX:VIEN) Overvalued in 2026?
Based on GuruFocus' analysis, Veolia Environnement stock appears to be overvalued.
The current stock price of MXN719.25 is trading 23% above its estimated GF Value™ of MXN584.65.
Key valuation signals for MEX:VIEN:
ROIC %: 4.74%
GF Value™: MXN584.65 vs. price of MXN719.25 (23% above fair value)
Industry Position: 34.3% above the Waste Management median
No single metric tells the full story. See the MEX:VIEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Veolia is the largest water company globally and a leading player in France. It is also involved in waste management with significant exposure to France, the United Kingdom, Germany, the United States, and Australia. The third pillar of the group is energy services, giving the group significant exposure to Central Europe. Veolia started to refocus its activities in 2011, leading to the exit of almost half of its countries and its transport activity The integration of most activities of Suez in 2022 drove an EBITDA increase of nearly 40%.
85GF Score
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