The factors in favour of a drop in the Veolia share price:
If the Veolia share has real appeal for private investors who decide to trade it in line with CFDs, this share also has some weak points that it is also necessary to take into account and of which here are some concrete examples:
Firstly, a significant part of the business is showing significant cyclicality with the crisis, due in particular to the fall in prices in Germany, the renegotiation of contracts in France and the end of the Indianapolis contract.
In addition, the utilities segment is experiencing a bearish phase on the stock markets with a downward renegotiation of French contracts and doubts from investors who fear an imminent rise in interest rates.
Veolia's various business lines also show a strong disparity in terms of profitability, with high margins in the water sector, which accounts for ¾ of operating profit, followed by waste management, which accounts for the remaining quarter. The geographical distribution is also very disparate, since Veolia makes more profit in the rest of the world than in France and Europe.
Finally, the recent postponement of the financial targets that the group had set for 2018 has had a major impact on investor morale.