VALLOUREC SA (VK.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:VK - FR0013506730 - Common Stock
17.985 EUR
+0.32 (+1.81%)
Taking everything into account, VK scores 6 out of 10 in our fundamental rating. VK was compared to 38 industry peers in the Energy Equipment & Services industry. While VK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year VK was profitable.
- VK had a positive operating cash flow in the past year.
- In multiple years VK reported negative net income over the last 5 years.
- In multiple years VK reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.87%, VK belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
- With an excellent Return On Equity value of 25.86%, VK belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
- VK has a better Return On Invested Capital (17.41%) than 92.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for VK is above the industry average of 10.43%.
- The 3 year average ROIC (12.51%) for VK is below the current ROIC(17.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 25.86% | ||
| ROIC | 17.41% |
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
- The Profit Margin of VK (10.18%) is better than 68.42% of its industry peers.
- In the last couple of years the Profit Margin of VK has grown nicely.
- Looking at the Operating Margin, with a value of 15.35%, VK is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
- VK's Operating Margin has improved in the last couple of years.
- The Gross Margin of VK (29.66%) is comparable to the rest of the industry.
- VK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.35% | ||
| PM (TTM) | 10.18% | ||
| GM | 29.66% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VK is creating value.
- The number of shares outstanding for VK has been increased compared to 1 year ago.
- The number of shares outstanding for VK has been increased compared to 5 years ago.
- The debt/assets ratio for VK has been reduced compared to a year ago.
2.2 Solvency
- VK has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as VK would need 3.20 years to pay back of all of its debts.
- VK has a Debt to FCF ratio of 3.20. This is in the better half of the industry: VK outperforms 60.53% of its industry peers.
- VK has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of VK (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | N/A |
ROIC/WACC2.23
WACC7.8%
2.3 Liquidity
- VK has a Current Ratio of 2.13. This indicates that VK is financially healthy and has no problem in meeting its short term obligations.
- VK's Current ratio of 2.13 is fine compared to the rest of the industry. VK outperforms 76.32% of its industry peers.
- A Quick Ratio of 1.27 indicates that VK should not have too much problems paying its short term obligations.
- VK has a Quick ratio of 1.27. This is comparable to the rest of the industry: VK outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- VK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.66%.
- VK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 121.70% yearly.
- Looking at the last year, VK shows a very negative growth in Revenue. The Revenue has decreased by -10.37% in the last year.
- Measured over the past years, VK shows a decrease in Revenue. The Revenue has been decreasing by -0.68% on average per year.
EPS 1Y (TTM)-16.66%
EPS 3Y121.7%
EPS 5YN/A
EPS Q2Q%700.36%
Revenue 1Y (TTM)-10.37%
Revenue growth 3Y5.43%
Revenue growth 5Y-0.68%
Sales Q2Q%-1.99%
3.2 Future
- VK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.81% yearly.
- Based on estimates for the next years, VK will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
EPS Next Y46.97%
EPS Next 2Y29.97%
EPS Next 3Y27.29%
EPS Next 5Y22.81%
Revenue Next Year-6.83%
Revenue Next 2Y-2.38%
Revenue Next 3Y1.1%
Revenue Next 5Y3.15%
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
- Based on the Price/Earnings ratio of 15.50, the valuation of VK can be described as correct.
- The rest of the industry has a similar Price/Earnings ratio as VK.
- VK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.77, the valuation of VK can be described as reasonable.
- 68.42% of the companies in the same industry are more expensive than VK, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of VK to the average of the S&P500 Index (24.26), we can say VK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 9.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VK is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
- VK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.91 | ||
| EV/EBITDA | 3.58 |
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.
- VK has a very decent profitability rating, which may justify a higher PE ratio.
- VK's earnings are expected to grow with 27.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y29.97%
EPS Next 3Y27.29%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.67%, VK is a good candidate for dividend investing.
- VK's Dividend Yield is rather good when compared to the industry average which is at 3.61. VK pays more dividend than 86.84% of the companies in the same industry.
- VK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.67% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y29.97%
EPS Next 3Y27.29%
VALLOUREC SA / VK.PA FAQ
Can you provide the ChartMill fundamental rating for VALLOUREC SA?
ChartMill assigns a fundamental rating of 6 / 10 to VK.PA.
What is the valuation status for VK stock?
ChartMill assigns a valuation rating of 6 / 10 to VALLOUREC SA (VK.PA). This can be considered as Fairly Valued.
What is the profitability of VK stock?
VALLOUREC SA (VK.PA) has a profitability rating of 7 / 10.
Can you provide the financial health for VK stock?
The financial health rating of VALLOUREC SA (VK.PA) is 5 / 10.