VALEO (FR.PA) Stock Fundamental Analysis
EPA:FR - Euronext Paris - Matif - FR0013176526 - Common Stock - Currency: EUR
Taking everything into account, FR scores 4 out of 10 in our fundamental rating. FR was compared to 30 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. FR scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 has a Return On Assets of 0.75%. This is comparable to the rest of the industry: FR outperforms 53.33% of its industry peers.
FR has a Return On Equity (4.36%) which is in line with its industry peers.
The Return On Invested Capital of FR (5.44%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FR is in line with the industry average of 6.39%.
The last Return On Invested Capital (5.44%) for FR is above the 3 year average (4.55%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 0.75%, FR is in line with its industry, outperforming 53.33% 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 4.28% is in line compared to the rest of the industry. FR outperforms 43.33% of its industry peers.
In the last couple of years the Operating Margin of FR has declined.
The Gross Margin of FR (18.99%) is worse than 73.33% 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
The debt/assets ratio for FR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.22, 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: 73.33% 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.
Looking at the Debt to FCF ratio, with a value of 14.47, FR is in line with its industry, outperforming 46.67% of the companies in the same industry.
A Debt/Equity ratio of 1.53 is on the high side and indicates that FR has dependencies on debt financing.
The Debt to Equity ratio of FR (1.53) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 14.47 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.29
WACC4.23%
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.
With a Current ratio value of 0.81, FR is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that FR may have some problems paying its short term obligations.
FR has a Quick ratio of 0.62. This is amonst the worse of the industry: FR underperforms 83.33% 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 -27.47%.
The earnings per share for FR have been decreasing by -12.75% on average. This is quite bad
The Revenue has decreased by -2.50% in the past year.
The Revenue has been growing slightly by 1.99% on average over the past years.
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
The Earnings Per Share is expected to grow by 64.53% on average over the next years. This is a very strong growth
Based on estimates for the next years, FR will show a small growth in Revenue. The Revenue will grow by 2.38% on average per year.
EPS Next Y103.92%
EPS Next 2Y82.7%
EPS Next 3Y64.53%
EPS Next 5YN/A
Revenue Next Year-0.6%
Revenue Next 2Y1.52%
Revenue Next 3Y2.38%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.35, FR is valued correctly.
FR's Price/Earnings ratio is in line with the industry average.
FR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 7.04 indicates a rather cheap valuation of FR.
66.67% of the companies in the same industry are more expensive than FR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FR to the average of the S&P500 Index (21.90), we can say FR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 7.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FR is valued cheaper than 96.67% 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 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.84 | ||
| EV/EBITDA | 1.76 |
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.
FR's earnings are expected to grow with 64.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y82.7%
EPS Next 3Y64.53%
5. Dividend
5.1 Amount
FR has a Yearly Dividend Yield of 4.58%, which is a nice return.
FR's Dividend Yield is a higher than the industry average which is at 5.42.
Compared to an average S&P500 Dividend Yield of 2.42, FR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
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
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 2Y82.7%
EPS Next 3Y64.53%
EPA:FR (7/3/2025, 7:00:00 PM)
9.47
-0.17 (-1.74%)
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 Cap2.32B
Analysts71.82
Price Target10.36 (9.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Yearly Dividend0.4
Dividend Growth(5Y)-20.41%
DP59.88%
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)-1.62%
PT rev (3m)-12.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-20.99%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 7.04 | ||
| P/S | 0.11 | ||
| P/FCF | 4.84 | ||
| P/OCF | 0.86 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.76 |
EPS(TTM)0.66
EY6.97%
EPS(NY)1.35
Fwd EY14.21%
FCF(TTM)1.96
FCFY20.68%
OCF(TTM)11.05
OCFY116.68%
SpS87.86
BVpS15.2
TBVpS-10.98
PEG (NY)0.14
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
WACC4.23%
ROIC/WACC1.29
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 Year-0.6%
Revenue Next 2Y1.52%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
EBIT growth 1Y9.67%
EBIT growth 3Y9.55%
EBIT growth 5Y-2.33%
EBIT Next Year251.93%
EBIT Next 3Y59.92%
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%