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. There are concerns on the financial health of FR while its profitability can be described as average. FR scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year FR was profitable.
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 has a Return On Assets (0.75%) which is comparable to the rest of the industry.
FR has a Return On Equity of 4.36%. This is comparable to the rest of the industry: FR outperforms 48.28% of its industry peers.
FR has a Return On Invested Capital of 5.44%. This is comparable to the rest of the industry: FR outperforms 55.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FR is in line with the industry average of 6.41%.
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.
FR's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.28%, FR is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of FR has declined.
FR's Gross Margin of 18.99% is on the low side compared to the rest of the industry. FR is outperformed by 75.86% of its industry peers.
In the last couple of years the Gross Margin of FR has remained more or less at the same level.
| 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.
The number of shares outstanding for FR has been reduced compared to 1 year ago.
FR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that FR is in the distress zone and has some risk of bankruptcy.
FR's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. FR is outperformed by 79.31% of its industry peers.
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 of 14.47. This is comparable to the rest of the industry: FR outperforms 44.83% of its industry peers.
FR has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.53, FR is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 14.47 | ||
| Altman-Z | 1.21 |
ROIC/WACC1.18
WACC4.63%
2.3 Liquidity
A Current Ratio of 0.81 indicates that FR may have some problems paying its short term obligations.
FR's Current ratio of 0.81 is on the low side compared to the rest of the industry. FR is outperformed by 86.21% of its industry peers.
A Quick Ratio of 0.62 indicates that FR may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, 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 | 0.81 | ||
| 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 -27.47%.
FR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.75% yearly.
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)-27.47%
EPS 3Y-2.75%
EPS 5Y-12.75%
EPS Q2Q%-80.49%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y7.58%
Revenue growth 5Y1.99%
Sales Q2Q%-4.22%
3.2 Future
FR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.53% yearly.
The Revenue is expected to grow by 3.44% on average over the next years.
EPS Next Y103.92%
EPS Next 2Y82.7%
EPS Next 3Y64.53%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.46 indicates a correct valuation of FR.
Compared to the rest of the industry, the Price/Earnings ratio of FR is on the same level as its industry peers.
FR is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.60, the valuation of FR can be described as very cheap.
Based on the Price/Forward Earnings ratio, FR is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FR to the average of the S&P500 Index (21.38), we can say FR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 6.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FR is valued cheaper than 89.66% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FR indicates a somewhat cheap valuation: FR is cheaper than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.54 | ||
| EV/EBITDA | 1.69 |
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.
FR's earnings are expected to grow with 64.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y82.7%
EPS Next 3Y64.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.23%, FR is a good candidate for dividend investing.
FR's Dividend Yield is a higher than the industry average which is at 5.85.
Compared to an average S&P500 Dividend Yield of 2.51, FR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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
59.88% of the earnings are spent on dividend by FR. This is a bit on the high side, but may be sustainable.
DP59.88%
EPS Next 2Y82.7%
EPS Next 3Y64.53%
EPA:FR (4/25/2025, 7:00:00 PM)
8.884
+0.1 (+1.09%)
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 Cap2.17B
Analysts70
Price Target11.2 (26.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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)-5.83%
PT rev (3m)-3.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-20.99%
EPS NY rev (3m)-30.32%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 6.6 | ||
| P/S | 0.1 | ||
| P/FCF | 4.54 | ||
| P/OCF | 0.8 | ||
| P/B | 0.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.69 |
EPS(TTM)0.66
EY7.43%
EPS(NY)1.35
Fwd EY15.15%
FCF(TTM)1.96
FCFY22.04%
OCF(TTM)11.05
OCFY124.37%
SpS87.86
BVpS15.2
TBVpS-10.98
PEG (NY)0.13
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 | 1.21 |
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)-27.47%
EPS 3Y-2.75%
EPS 5Y-12.75%
EPS Q2Q%-80.49%
EPS Next Y103.92%
EPS Next 2Y82.7%
EPS Next 3Y64.53%
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 Year259.35%
EBIT Next 3Y60.81%
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%