Veolia: Resource management giant (water, waste, energy) due for a rerating

The world leader in environmental services is very resilient, able to grow even in a difficult macro context and is perfectly positioned to ride many megatrends over the next years and decades

Welcome to the 19th investment case, 16th resilience, 10th reshoring/sovereignty idea on Crack the Market (and the most comprehensive Veolia investment case you will find online)! Join me as I dissect the environmental services giant, building the vital water, waste management and energy infrastructure required to enable our economies to become more resilient and decarbonized, continue to function and grow, reshore our industries, do more with less and bring us closer to a circular economy.

Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.

Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.

You can already read my first 18 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:

• ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.

• LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.

• Atlas Copco (resilience, reshoring & China idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.

• Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.

• Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.

• Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.

• Itron (resilience & reshoring idea): Riding the grid investment super cycle and enabling smart grids.

• Roper (resilience idea): A resilient cashflow compounder in the software space with inflecting growth.

• RELX (resilience idea): The company to own forever – one of the very best businesses on Earth.

• CPKC (resilience & reshoring idea): The rail connecting Canada/US/Mexico and benefiting from reshoring.

• Novo Nordisk (resilience idea): The most exciting pharma company in the world is misunderstood and its growth engine is ready to roar back to life.

• Kurita (resilience, reshoring & China idea): Water services expert with improving margins and benefiting from reshoring of semiconductor production.

• Halma (resilience idea): High quality compounder in safety, health and environmental technologies.

• Quanta Services (resilience & reshoring idea): Countercyclical compounder riding a multi decade infrastructure buildout.

• Infineon (China idea): Power semiconductor leader with strong structural drivers (AI power and China auto) amidst a cyclical recovery.

• Hubbell (resilience & reshoring idea): Pure play on US electrification demand driven by AI and grid investment cycle.

• Iberdrola (resilience & reshoring idea): Best integrated utility in the world with a stellar track record and solid growth driven by networks and renewables

• Nvidia (AI & data center idea): The backbone of the AI world is unstoppable.

After reading this article, you will understand why this company is so critical to our everyday life and our ability to grow our societies and economy, what it does, why it is so diversified, resilient and innovative, both providing predictable growth and capturing many of the most critical megatrends of the next few years and decades, why its valuation remains so depressed and why a rerating is not only possible but likely.

In this article I go through:

1. Veolia’s very large, diverse and world leading environmental services portfolio.

2. How the company has transformed from a cyclical French waste management and water services business to a stable, all weather environmental titan driven by climate change and regulatory infrastructure needs.

3. How the transformational Suez acquisition makes Veolia the world leader in water and waste management.

4. How its international push and focus on its Stronghold and Booster activities will deliver DD growth for the company in the next years.

5. Why its valuation has remained well below its peers and why it could change.

Veolia Investment Case