SUEZ

Analysis of Suez share price

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If you're planning to buy Suez stock or add it to the stock portfolio, you must first of all have an excellent understanding of the company and be able to understand what its challenges and its evolution possibilities are. We'll cover the elements you need to perform a proper fundamental analyses of this stock step by step. We'll start with a detailed presentation of the group's activities, present its main competitors and recent partnerships and also explain how to analyse this value and what its advantages and drawbacks are.

Latest news

Remondis: German company interested in the "new Suez"

25/05/2021 - 07h50

The German company Remondis wants to participate in the capital of the future Suez. It has made an initial offer of 20%, before specifying that it could subscribe to up to 40%.

Elements that can influence the price of this asset:

Analysis N°1

The level of the group's debt must be closely monitored as well as the interest rates which will influence the profitability of the group.

Analysis N°2

Significant concession contracts that the Suez group may win or lose should also be monitored.

Analysis N°3

The regulations and their developments in the European Union as well as the pressure of local authorities on prices are also elements that can influence this value.

Analysis N°4

The evolution of the group's activity in the waste sector is also to be taken into account during your analyses.

Analysis N°5

You should also monitor communications and the achievement of objectives set by the company with regard to revenue and operating profits.

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General presentation of Suez

Let's start our overview of the Suez share with a complete presentation of the company and an update on its activities and different sources of income.

The Suez group is a French company operating in the environmental services sector. This company is currently one of the main providers in this sector internationally. It is however interesting to know the details of its activities by dividing them according to the share of the turnover that they generate.

  • Firstly, there's the hazardous and non-hazardous waste collection and treatment in Europe, which generates 35.9% of sales for Suez, making it number 2 in Europe in this segment.
  • Next comes the drinking water distribution and wastewater treatment sector in Europe, which represents 25.7% of the company's turnover, also number 2 in Europe.
  • Water treatment for industrial customers represents 14.4% of the group's turnover with the subsidiary WTS.
  • Finally, the remaining 30% of turnover comes from ancillary activities such as international activities along with the engineering, design and construction of water treatment facilities with the Degrémont subsidiary.

From a geographic point of view, the Suez group generates nearly 28.2% of its turnover in France, 32.3% in Europe and 39.5% in the rest of the world.

Analysis of Suez share price
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The major competitors of Suez

The Suez group is currently one of the major players in its sector of activity in Europe but is obviously not the only one in this segment. It has to face some major competitors that you, as an investor, should be familiar with. Here they are in detail:

Véolia 

The leader in this business sector is of course the Véolia group, formerly known as Véolia environment or Vivendi environment. This is a French group specializing in collective services. The company markets water management, energy waste management and recovery services to clients made up of local communities and businesses. The group has 163,000 employees worldwide and is listed on the Euronext Paris market. It was also formerly listed on the NYSE US Stock Exchange until 2014.

SAUR

There is also the SAUR group as a direct competitor of Suez. It's a company that supports local communities and manufacturers in their water-related development projects, including engineering, construction and operation, as well as leisure activities such as the management of golf courses and campsites. It is therefore a provider of delegated management of water services managing drinking water and wastewater on behalf of local communities and manufacturers.

RWE

Finally, Suez's last major competitor is the RWE AG group, which is a German conglomerate specializing in the energy sector. This company was established in 1898 and is based in Essen. The group has several subsidiaries which enable it to offer electricity, gas, water and environmental services distribution activities to no less than 120 million individual or business customers, particularly in Europe and North America. RWE is also the second largest electricity producer in Germany.


The major partners of Suez

Although the Suez group has many competitors, therefore enemies, it is also supported by strategic partners. In fact, both in the past and today, the company sets up selected strategic alliances with companies in the same sector or in complementary sectors. Check out some of its main partners.

Airbus 

In 2018, the French group Airbus entered into a partnership with Suez in order to achieve its environmental objectives. To carry out its environmental policy, Airbus has renewed its partnership with Suez for a facility management service adapted to its aeronautical activity. Among the missions entrusted to Suez are the collection of waste or its disposal, treatment management and recycling channels, material resale, regulatory management, keeping the legal register, activity reporting and flow monitoring. Suez also took charge of snow removal, salting and track and road weeding, along with the collection of bio-waste from the 15 restaurants on the site and the treatment of hazardous waste.

Engie 

In 2019, the Engie group and the Suez group inaugurated the fruit of their partnership, a photovoltaic solar park resulting from their partnership in favour of the energy transition of the regions. The park is located in Drambon-Pontailler in the Côte d'Or. This is the very first installation resulting from the partnership which aims to develop renewable energies in metropolitan France by transforming waste storage centres into solar farms.

Total 

Finally, the Total group has also signed a 10-year partnership with Suez, which aims to increase the volumes of used cooking oils collected by over 20% and to supply the bio refinery in La Mede. The two companies have joined forces in order to recycle used cooking oils in France. As part of this ten-year partnership, the Suez group has committed to deliver 20,000 tonnes of used cooking oils per year to the Total group. These oils are collected throughout the territory then transformed into biofuel on the site of Total's bio-refinery in La Mède.

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Frequently Asked Questions

What are the latest results published by Suez?

For the 2019 financial year, the Suez group achieved a turnover of 18 billion euros. The number of the company's employees is currently 89,352. Also in 2019, the Suez Company produced 7.6 billion m3 of water and biologically treated nearly 5.1 billion m3 of wastewater. The group has recovered over 16.3 million tonnes of waste. To date, more than 32.7 million people benefit from the waste collection service as well as 450,000 industrial and commercial customers.

Is the Suez group part of the CAC 40 stock market index?

It was in 2008, after the merger between Suez and Gaz de France that the group was floated on the French market. Following this transaction, Suez Environnement has in fact partially drawn itself back from the GDF Suez group and entered the stock market in July. That same year, in September, the Suez group also integrated several of the main indices of this financial centre, including the CAC 40.

How is the capital of the Suez group distributed?

The capital of Suez is still 32.1% owned by Engie, other shareholders are also included, Fundacion Bancaria Caixa d'Estalvis at 5.88%, group employees at 3.82%; Francesco Gaetano Caltagirone at 3.49%, Pictet Asset management at 2.69%, Impax Asset management at 2.36%, Capital Research & Management at 2.26%, Norges Bank Investment Management at 2.02%, The Vanguard Group at 1.61% and Amundi Asset Management SA at 0.96 %.

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The content in question is provided for information purposes only and should not be considered as investment advice. Past performance is no guarantee of future results. The trading history is less than 5 years old and may not be sufficient to serve as a basis for an investment decision.

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