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
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.
Each year in the past 5 years FR had a positive operating cash flow.
1.2 Ratios
FR has a Return On Assets of 0.75%. This is comparable to the rest of the industry: FR outperforms 51.72% of its industry peers.
FR has a Return On Equity of 4.36%. This is comparable to the rest of the industry: FR outperforms 51.72% of its industry peers.
With a Return On Invested Capital value of 5.44%, FR perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FR is in line with the industry average of 6.40%.
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
FR has a Profit Margin of 0.75%. This is comparable to the rest of the industry: FR outperforms 51.72% of its industry peers.
In the last couple of years the Profit Margin of FR has declined.
FR has a Operating Margin (4.28%) which is comparable to the rest of the industry.
FR's Operating Margin has declined in the last couple of years.
FR has a worse Gross Margin (18.99%) than 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
FR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
FR has a better debt/assets ratio than last year.
2.2 Solvency
FR has an Altman-Z score of 1.22. This is a bad value and indicates that FR is not financially healthy and even has some risk of bankruptcy.
FR has a worse Altman-Z score (1.22) than 79.31% of its industry peers.
FR has a debt to FCF ratio of 14.47. This is a negative value and a sign of low solvency as FR would need 14.47 years to pay back of all of its debts.
The Debt to FCF ratio of FR (14.47) is comparable to the rest of the industry.
FR has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
FR's Debt to Equity ratio of 1.53 is on the low side compared to the rest of the industry. FR is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 14.47 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.13
WACC4.82%
2.3 Liquidity
A Current Ratio of 0.81 indicates that FR may have some problems paying its short term obligations.
FR has a worse Current ratio (0.81) than 86.21% 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 86.21% 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%.
FR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.75% yearly.
FR shows a decrease in Revenue. In the last year, the revenue decreased by -2.50%.
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
The Earnings Per Share is expected to grow by 64.53% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.38% on average over the next years.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.63, which indicates a correct valuation of FR.
FR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.82. FR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 6.68, the valuation of FR can be described as very cheap.
FR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FR is cheaper than 68.97% of the companies in the same industry.
FR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 6.68 |
4.2 Price Multiples
FR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FR is cheaper than 93.10% 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 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.59 | ||
| EV/EBITDA | 1.73 |
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 64.53% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y82.7%
EPS Next 3Y64.53%
5. Dividend
5.1 Amount
FR has a Yearly Dividend Yield of 4.42%, which is a nice return.
FR's Dividend Yield is a higher than the industry average which is at 5.21.
FR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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 (5/23/2025, 7:00:00 PM)
8.994
-0.26 (-2.81%)
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 Cap2.20B
Analysts70
Price Target10.53 (17.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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)-6.04%
PT rev (3m)-11.43%
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)-5.5%
Revenue NY rev (3m)-3.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 6.68 | ||
| P/S | 0.1 | ||
| P/FCF | 4.59 | ||
| P/OCF | 0.81 | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.73 |
EPS(TTM)0.66
EY7.34%
EPS(NY)1.35
Fwd EY14.96%
FCF(TTM)1.96
FCFY21.77%
OCF(TTM)11.05
OCFY122.85%
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 | 1.22 |
F-Score6
WACC4.82%
ROIC/WACC1.13
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 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%