VALEO (FR.PA) Stock Fundamental Analysis
Europe - EPA:FR - FR0013176526 - Common Stock
10.57 EUR
-0.08 (-0.8%)
Overall FR gets a fundamental rating of 4 out of 10. We evaluated FR against 29 industry peers in the Automobile Components industry. There are concerns on the financial health of FR while its profitability can be described as average. FR is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FR had positive earnings in the past year.
FR had a positive operating cash flow in the past year.
Of the past 5 years FR 4 years were profitable.
FR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FR's Return On Assets of 0.61% is in line compared to the rest of the industry. FR outperforms 51.72% of its industry peers.
The Return On Equity of FR (3.93%) is comparable to the rest of the industry.
FR has a Return On Invested Capital of 6.06%. This is in the better half of the industry: FR outperforms 62.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FR is below the industry average of 6.57%.
The 3 year average ROIC (4.55%) for FR is below the current ROIC(6.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 3.93% | ||
| ROIC | 6.06% |
ROA(3y)0.94%
ROA(5y)-0.41%
ROE(3y)5.52%
ROE(5y)-2.49%
ROIC(3y)4.55%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.59%, FR is in line with its industry, outperforming 51.72% of the companies in the same industry.
In the last couple of years the Profit Margin of FR has declined.
FR's Operating Margin of 4.52% is on the low side compared to the rest of the industry. FR is outperformed by 62.07% of its industry peers.
FR's Operating Margin has declined in the last couple of years.
FR has a Gross Margin of 19.59%. This is in the lower half of the industry: FR underperforms 75.86% of its industry peers.
FR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.52% | ||
| PM (TTM) | 0.59% | ||
| GM | 19.59% |
OM growth 3Y1.83%
OM growth 5Y-4.23%
PM growth 3Y-9.41%
PM growth 5Y-14.05%
GM growth 3Y2.54%
GM growth 5Y1.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FR is creating some value.
The number of shares outstanding for FR has been reduced compared to 1 year ago.
The number of shares outstanding for FR has been increased compared to 5 years ago.
FR has a better debt/assets ratio than last year.
2.2 Solvency
FR has an Altman-Z score of 1.29. This is a bad value and indicates that FR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, FR is doing worse than 75.86% of the companies in the same industry.
The Debt to FCF ratio of FR is 11.66, which is on the high side as it means it would take FR, 11.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.66, FR is in line with its industry, outperforming 51.72% of the companies in the same industry.
FR has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.72, FR is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 11.66 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.21
WACC5%
2.3 Liquidity
FR has a Current Ratio of 0.79. This is a bad value and indicates that FR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, FR is doing worse than 86.21% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that FR may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, FR is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for FR have decreased strongly by -27.47% in the last year.
Measured over the past years, FR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.75% on average per year.
The Revenue has decreased by -4.16% in the past year.
FR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.99% yearly.
EPS 1Y (TTM)-27.47%
EPS 3Y-2.75%
EPS 5Y-12.75%
EPS Q2Q%-26.25%
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y7.58%
Revenue growth 5Y1.99%
Sales Q2Q%-4.11%
3.2 Future
Based on estimates for the next years, FR will show a very strong growth in Earnings Per Share. The EPS will grow by 58.05% on average per year.
The Revenue is expected to grow by 1.12% on average over the next years.
EPS Next Y80.56%
EPS Next 2Y67.59%
EPS Next 3Y58.05%
EPS Next 5YN/A
Revenue Next Year-4.44%
Revenue Next 2Y-0.87%
Revenue Next 3Y1.12%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.02, the valuation of FR can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of FR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.27, FR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 5.70, the valuation of FR can be described as very cheap.
Based on the Price/Forward Earnings ratio, FR is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, FR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 5.7 |
4.2 Price Multiples
89.66% of the companies in the same industry are more expensive than FR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FR is valued a bit cheaper than 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.58 | ||
| EV/EBITDA | 2.07 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FR's earnings are expected to grow with 58.05% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y67.59%
EPS Next 3Y58.05%
5. Dividend
5.1 Amount
FR has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
FR's Dividend Yield is a higher than the industry average which is at 4.68.
Compared to an average S&P500 Dividend Yield of 2.38, FR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of FR decreases each year by -20.41%.
Dividend Growth(5Y)-20.41%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
82.40% of the earnings are spent on dividend by FR. This is not a sustainable payout ratio.
DP82.4%
EPS Next 2Y67.59%
EPS Next 3Y58.05%
EPA:FR (9/16/2025, 3:55:01 PM)
10.57
-0.08 (-0.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners52.35%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap2.59B
Analysts72.5
Price Target10.83 (2.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend0.4
Dividend Growth(5Y)-20.41%
DP82.4%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.44%
PT rev (3m)4.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-11.46%
EPS NY rev (3m)-11.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.48%
Revenue NY rev (3m)-3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 5.7 | ||
| P/S | 0.12 | ||
| P/FCF | 4.58 | ||
| P/OCF | 1.03 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.07 |
EPS(TTM)0.66
EY6.24%
EPS(NY)1.85
Fwd EY17.54%
FCF(TTM)2.31
FCFY21.85%
OCF(TTM)10.27
OCFY97.15%
SpS85.99
BVpS13
TBVpS-12.66
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 3.93% | ||
| ROCE | 9.41% | ||
| ROIC | 6.06% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 33.26% | ||
| OM | 4.52% | ||
| PM (TTM) | 0.59% | ||
| GM | 19.59% | ||
| FCFM | 2.69% |
ROA(3y)0.94%
ROA(5y)-0.41%
ROE(3y)5.52%
ROE(5y)-2.49%
ROIC(3y)4.55%
ROIC(5y)N/A
ROICexc(3y)6.21%
ROICexc(5y)N/A
ROICexgc(3y)22.27%
ROICexgc(5y)N/A
ROCE(3y)7.3%
ROCE(5y)N/A
ROICexcg growth 3Y36.11%
ROICexcg growth 5Y17.24%
ROICexc growth 3Y10.81%
ROICexc growth 5Y1.46%
OM growth 3Y1.83%
OM growth 5Y-4.23%
PM growth 3Y-9.41%
PM growth 5Y-14.05%
GM growth 3Y2.54%
GM growth 5Y1.38%
F-Score5
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 11.66 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 97.89% | ||
| Cap/Sales | 9.26% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 85.47% | ||
| Profit Quality | 452% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.29 |
F-Score5
WACC5%
ROIC/WACC1.21
Cap/Depr(3y)101.47%
Cap/Depr(5y)92.97%
Cap/Sales(3y)8.95%
Cap/Sales(5y)8.73%
Profit Quality(3y)226.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.47%
EPS 3Y-2.75%
EPS 5Y-12.75%
EPS Q2Q%-26.25%
EPS Next Y80.56%
EPS Next 2Y67.59%
EPS Next 3Y58.05%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y7.58%
Revenue growth 5Y1.99%
Sales Q2Q%-4.11%
Revenue Next Year-4.44%
Revenue Next 2Y-0.87%
Revenue Next 3Y1.12%
Revenue Next 5YN/A
EBIT growth 1Y3.26%
EBIT growth 3Y9.55%
EBIT growth 5Y-2.33%
EBIT Next Year251.93%
EBIT Next 3Y59.92%
EBIT Next 5YN/A
FCF growth 1Y580.72%
FCF growth 3Y19.88%
FCF growth 5Y-0.77%
OCF growth 1Y35.71%
OCF growth 3Y18.41%
OCF growth 5Y1.87%