VALEO (FR.PA) Stock Fundamental Analysis
EPA:FR - Euronext Paris - Matif - FR0013176526 - Common Stock - Currency: EUR
FR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 industry peers in the Automobile Components industry. While FR is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on FR.
1. Profitability
1.1 Basic Checks
FR had positive earnings in the past year.
In the past year FR had a positive cash flow from operations.
Of the past 5 years FR 4 years were profitable.
Each year in the past 5 years FR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FR (0.75%) is comparable to the rest of the industry.
The Return On Equity of FR (4.36%) is comparable to the rest of the industry.
FR has a Return On Invested Capital (5.44%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FR is in line with the industry average of 6.14%.
The 3 year average ROIC (4.55%) for FR is below the current ROIC(5.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 4.36% | ||
| ROIC | 5.44% |
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
The Profit Margin of FR (0.75%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FR has declined.
FR's Operating Margin of 4.28% is on the low side compared to the rest of the industry. FR is outperformed by 61.29% of its industry peers.
FR's Operating Margin has declined in the last couple of years.
FR has a worse Gross Margin (18.99%) than 74.19% of its industry peers.
FR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.28% | ||
| PM (TTM) | 0.75% | ||
| GM | 18.99% |
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.
Compared to 1 year ago, FR has less shares outstanding
Compared to 5 years ago, FR has more shares outstanding
FR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that FR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.22, FR is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
The Debt to FCF ratio of FR is 14.47, which is on the high side as it means it would take FR, 14.47 years of fcf income to pay off all of its debts.
FR has a Debt to FCF ratio (14.47) which is in line with its industry peers.
A Debt/Equity ratio of 1.53 is on the high side and indicates that FR has dependencies on debt financing.
FR has a Debt to Equity ratio of 1.53. This is in the lower half of the industry: FR underperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 14.47 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.18
WACC4.63%
2.3 Liquidity
FR has a Current Ratio of 0.81. This is a bad value and indicates that FR is not financially healthy enough and could expect problems in meeting its short term obligations.
FR has a worse Current ratio (0.81) than 83.87% of its industry peers.
A Quick Ratio of 0.62 indicates that FR may have some problems paying its short term obligations.
The Quick ratio of FR (0.62) is worse than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
FR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.83%.
The earnings per share for FR have been decreasing by -12.75% on average. This is quite bad
Looking at the last year, FR shows a decrease in Revenue. The Revenue has decreased by -2.50% in the last 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)-26.83%
EPS 3Y-2.75%
EPS 5Y-12.75%
EPS Q2Q%-79.33%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y7.58%
Revenue growth 5Y1.99%
Sales Q2Q%-4.22%
3.2 Future
The Earnings Per Share is expected to grow by 52.41% on average over the next years. This is a very strong growth
FR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.44% yearly.
EPS Next Y41.64%
EPS Next 2Y45.64%
EPS Next 3Y52.41%
EPS Next 5YN/A
Revenue Next Year5.19%
Revenue Next 2Y3.82%
Revenue Next 3Y3.44%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.23, which indicates a correct valuation of FR.
FR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, FR is valued a bit cheaper.
FR is valuated cheaply with a Price/Forward Earnings ratio of 5.90.
Based on the Price/Forward Earnings ratio, FR is valued cheaper than 83.87% of the companies in the same industry.
FR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 5.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FR is valued cheaper than 96.77% of the companies in the same industry.
FR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FR is cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.13 | ||
| EV/EBITDA | 1.79 |
4.3 Compensation for Growth
FR's 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 52.41% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y45.64%
EPS Next 3Y52.41%
5. Dividend
5.1 Amount
FR has a Yearly Dividend Yield of 4.19%, which is a nice return.
Compared to an average industry Dividend Yield of 5.30, FR pays a bit more dividend than its industry peers.
FR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of FR decreases each year by -20.41%.
Dividend Growth(5Y)-20.41%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
FR pays out 59.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.88%
EPS Next 2Y45.64%
EPS Next 3Y52.41%
EPA:FR (3/7/2025, 7:00:00 PM)
10.05
+0.04 (+0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners56.4%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap2.46B
Analysts70.4
Price Target11.9 (18.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend0.4
Dividend Growth(5Y)-20.41%
DP59.88%
Div Incr Years4
Div Non Decr Years4
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)0.09%
PT rev (3m)-4.55%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-11.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 5.9 | ||
| P/S | 0.11 | ||
| P/FCF | 5.13 | ||
| P/OCF | 0.91 | ||
| P/B | 0.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.79 |
EPS(TTM)0.66
EY6.57%
EPS(NY)1.7
Fwd EY16.95%
FCF(TTM)1.96
FCFY19.48%
OCF(TTM)11.05
OCFY109.94%
SpS87.86
BVpS15.2
TBVpS-10.98
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 4.36% | ||
| ROCE | 8.61% | ||
| ROIC | 5.44% | ||
| ROICexc | 7.57% | ||
| ROICexgc | 33.54% | ||
| OM | 4.28% | ||
| PM (TTM) | 0.75% | ||
| GM | 18.99% | ||
| FCFM | 2.23% |
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-Score6
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 14.47 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 111.82% | ||
| Cap/Sales | 10.35% | ||
| Interest Coverage | 2.99 | ||
| Cash Conversion | 92.95% | ||
| Profit Quality | 295.68% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.22 |
F-Score6
WACC4.63%
ROIC/WACC1.18
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)-26.83%
EPS 3Y-2.75%
EPS 5Y-12.75%
EPS Q2Q%-79.33%
EPS Next Y41.64%
EPS Next 2Y45.64%
EPS Next 3Y52.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y7.58%
Revenue growth 5Y1.99%
Sales Q2Q%-4.22%
Revenue Next Year5.19%
Revenue Next 2Y3.82%
Revenue Next 3Y3.44%
Revenue Next 5YN/A
EBIT growth 1Y9.67%
EBIT growth 3Y9.55%
EBIT growth 5Y-2.33%
EBIT Next Year267.35%
EBIT Next 3Y70.54%
EBIT Next 5YN/A
FCF growth 1Y7.16%
FCF growth 3Y19.88%
FCF growth 5Y-0.77%
OCF growth 1Y10.42%
OCF growth 3Y18.41%
OCF growth 5Y1.87%