VALEO (FR.PA) Stock Fundamental Analysis
EPA:FR - Euronext Paris - Matif - FR0013176526 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to FR. FR was compared to 30 industry peers in the Automobile Components industry. FR has a medium profitability rating, but doesn't score so well on its financial health evaluation. FR may be a bit undervalued, certainly considering the very reasonable score on growth
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 (0.75%) which is comparable to the rest of the industry.
The Return On Equity of FR (4.36%) is comparable to the rest of the industry.
FR has a Return On Invested Capital (5.44%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FR is in line with the industry average of 6.34%.
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 (0.75%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FR has declined.
FR has a Operating Margin (4.28%) which is in line with its industry peers.
In the last couple of years the Operating Margin of FR has declined.
Looking at the Gross Margin, with a value of 18.99%, FR is doing worse than 73.33% of the companies in the same industry.
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.
FR has less shares outstanding than it did 1 year ago.
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
FR has an Altman-Z score of 1.21. 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 (1.21) than 73.33% 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.
FR's Debt to FCF ratio of 14.47 is in line compared to the rest of the industry. FR outperforms 46.67% 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.
FR has a worse Debt to Equity ratio (1.53) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 14.47 | ||
| Altman-Z | 1.21 |
ROIC/WACC1.11
WACC4.89%
2.3 Liquidity
A Current Ratio of 0.81 indicates that FR may have some problems paying 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
The earnings per share for FR have decreased strongly by -27.47% in the last year.
Measured over the past years, FR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.75% on average per year.
Looking at the last year, FR shows a decrease in Revenue. The Revenue has decreased by -2.50% in the last 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
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
A Price/Earnings ratio of 13.57 indicates a correct valuation of FR.
The rest of the industry has a similar Price/Earnings ratio as FR.
FR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 6.65 indicates a rather cheap valuation of FR.
70.00% of the companies in the same industry are more expensive than FR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.19. FR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
FR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FR is cheaper than 93.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FR is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.57 | ||
| EV/EBITDA | 1.71 |
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
With a Yearly Dividend Yield of 4.59%, FR is a good candidate for dividend investing.
FR's Dividend Yield is a higher than the industry average which is at 5.13.
Compared to an average S&P500 Dividend Yield of 2.40, FR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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
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 (6/19/2025, 3:41:18 PM)
8.953
-0.09 (-0.96%)
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 Cap2.19B
Analysts71.82
Price Target10.36 (15.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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 | 13.57 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.1 | ||
| P/FCF | 4.57 | ||
| P/OCF | 0.81 | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.71 |
EPS(TTM)0.66
EY7.37%
EPS(NY)1.35
Fwd EY15.03%
FCF(TTM)1.96
FCFY21.87%
OCF(TTM)11.05
OCFY123.41%
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
WACC4.89%
ROIC/WACC1.11
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%