VALLOUREC SA (VK.PA) Stock Fundamental Analysis
EPA:VK - Euronext Paris - Matif - FR0013506730 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to VK. VK was compared to 35 industry peers in the Energy Equipment & Services industry. VK has an excellent profitability rating, but there are some minor concerns on its financial health. VK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VK had positive earnings in the past year.
VK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VK reported negative net income in multiple years.
In multiple years VK reported negative operating cash flow during the last 5 years.
1.2 Ratios
VK has a better Return On Assets (11.39%) than 88.57% of its industry peers.
VK has a better Return On Equity (25.08%) than 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 15.68%, VK belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VK is in line with the industry average of 10.77%.
The 3 year average ROIC (12.51%) for VK is below the current ROIC(15.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 25.08% | ||
| ROIC | 15.68% |
ROA(3y)3.34%
ROA(5y)-2.61%
ROE(3y)6.23%
ROE(5y)N/A
ROIC(3y)12.51%
ROIC(5y)N/A
1.3 Margins
VK has a Profit Margin of 10.65%. This is in the better half of the industry: VK outperforms 68.57% of its industry peers.
VK's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 15.23%, VK perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of VK has grown nicely.
VK has a Gross Margin of 29.92%. This is in the better half of the industry: VK outperforms 68.57% of its industry peers.
In the last couple of years the Gross Margin of VK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.23% | ||
| PM (TTM) | 10.65% | ||
| GM | 29.92% |
OM growth 3Y21.08%
OM growth 5Y74.02%
PM growth 3Y113.66%
PM growth 5YN/A
GM growth 3Y6.63%
GM growth 5Y10.76%
2. Health
2.1 Basic Checks
VK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for VK has been increased compared to 1 year ago.
Compared to 5 years ago, VK has more shares outstanding
The debt/assets ratio for VK has been reduced compared to a year ago.
2.2 Solvency
VK has an Altman-Z score of 2.54. This is not the best score and indicates that VK is in the grey zone with still only limited risk for bankruptcy at the moment.
VK's Altman-Z score of 2.54 is fine compared to the rest of the industry. VK outperforms 80.00% of its industry peers.
VK has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as VK would need 3.65 years to pay back of all of its debts.
VK has a Debt to FCF ratio (3.65) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.43 indicates that VK is not too dependend on debt financing.
The Debt to Equity ratio of VK (0.43) is better than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 2.54 |
ROIC/WACC2.04
WACC7.68%
2.3 Liquidity
VK has a Current Ratio of 2.14. This indicates that VK is financially healthy and has no problem in meeting its short term obligations.
VK has a Current ratio of 2.14. This is in the better half of the industry: VK outperforms 71.43% of its industry peers.
A Quick Ratio of 1.36 indicates that VK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, VK is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for VK have decreased strongly by -24.64% in the last year.
The Earnings Per Share has been growing by 121.70% on average over the past years. This is a very strong growth
Looking at the last year, VK shows a very negative growth in Revenue. The Revenue has decreased by -18.31% in the last year.
The Revenue has been decreasing by -0.68% on average over the past years.
EPS 1Y (TTM)-24.64%
EPS 3Y121.7%
EPS 5YN/A
EPS Q2Q%-20.93%
Revenue 1Y (TTM)-18.31%
Revenue growth 3Y5.43%
Revenue growth 5Y-0.68%
Sales Q2Q%0.1%
3.2 Future
Based on estimates for the next years, VK will show a very strong growth in Earnings Per Share. The EPS will grow by 25.24% on average per year.
The Revenue is expected to grow by 0.43% on average over the next years.
EPS Next Y65.08%
EPS Next 2Y46.8%
EPS Next 3Y38.81%
EPS Next 5Y25.24%
Revenue Next Year0.66%
Revenue Next 2Y2.32%
Revenue Next 3Y3.6%
Revenue Next 5Y0.43%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.70, which indicates a correct valuation of VK.
VK's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.15, VK is valued a bit cheaper.
A Price/Forward Earnings ratio of 6.68 indicates a rather cheap valuation of VK.
Based on the Price/Forward Earnings ratio, VK is valued a bit cheaper than 65.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VK to the average of the S&P500 Index (21.60), we can say VK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 6.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VK is valued a bit cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VK is valued a bit more expensive than the industry average as 65.71% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 3.3 |
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.
The decent profitability rating of VK may justify a higher PE ratio.
VK's earnings are expected to grow with 38.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y46.8%
EPS Next 3Y38.81%
5. Dividend
5.1 Amount
VK has a Yearly Dividend Yield of 9.89%, which is a nice return.
VK's Dividend Yield is rather good when compared to the industry average which is at 6.33. VK pays more dividend than 91.43% of the companies in the same industry.
VK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.89% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y46.8%
EPS Next 3Y38.81%
EPA:VK (6/30/2025, 7:00:00 PM)
15.695
+0.44 (+2.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners46.17%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap3.68B
Analysts82.5
Price Target21.02 (33.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.89% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
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)-4.13%
PT rev (3m)-5.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 6.68 | ||
| P/S | 0.62 | ||
| P/FCF | 11.46 | ||
| P/OCF | 7.54 | ||
| P/B | 1.46 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 3.3 |
EPS(TTM)1
EY6.37%
EPS(NY)2.35
Fwd EY14.96%
FCF(TTM)1.37
FCFY8.73%
OCF(TTM)2.08
OCFY13.26%
SpS25.25
BVpS10.72
TBVpS10.44
PEG (NY)0.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 25.08% | ||
| ROCE | 22.37% | ||
| ROIC | 15.68% | ||
| ROICexc | 19.66% | ||
| ROICexgc | 20.07% | ||
| OM | 15.23% | ||
| PM (TTM) | 10.65% | ||
| GM | 29.92% | ||
| FCFM | 5.42% |
ROA(3y)3.34%
ROA(5y)-2.61%
ROE(3y)6.23%
ROE(5y)N/A
ROIC(3y)12.51%
ROIC(5y)N/A
ROICexc(3y)16.27%
ROICexc(5y)N/A
ROICexgc(3y)16.68%
ROICexgc(5y)N/A
ROCE(3y)17.62%
ROCE(5y)N/A
ROICexcg growth 3Y27.28%
ROICexcg growth 5Y59.28%
ROICexc growth 3Y27.52%
ROICexc growth 5Y65.05%
OM growth 3Y21.08%
OM growth 5Y74.02%
PM growth 3Y113.66%
PM growth 5YN/A
GM growth 3Y6.63%
GM growth 5Y10.76%
F-Score4
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 66.99% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 9.29 | ||
| Cash Conversion | 42.4% | ||
| Profit Quality | 50.94% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.54 |
F-Score4
WACC7.68%
ROIC/WACC2.04
Cap/Depr(3y)153.16%
Cap/Depr(5y)113.35%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.64%
EPS 3Y121.7%
EPS 5YN/A
EPS Q2Q%-20.93%
EPS Next Y65.08%
EPS Next 2Y46.8%
EPS Next 3Y38.81%
EPS Next 5Y25.24%
Revenue 1Y (TTM)-18.31%
Revenue growth 3Y5.43%
Revenue growth 5Y-0.68%
Sales Q2Q%0.1%
Revenue Next Year0.66%
Revenue Next 2Y2.32%
Revenue Next 3Y3.6%
Revenue Next 5Y0.43%
EBIT growth 1Y-37.2%
EBIT growth 3Y27.66%
EBIT growth 5Y72.85%
EBIT Next Year60.56%
EBIT Next 3Y25.46%
EBIT Next 5Y19.08%
FCF growth 1Y-33.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.82%
OCF growth 3YN/A
OCF growth 5Y32.63%