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 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on FR.
1. Profitability
1.1 Basic Checks
FR had positive earnings in the past year.
In the past year FR had a positive cash flow from operations.
Of the past 5 years FR 4 years were profitable.
In the past 5 years FR always reported a positive cash flow from operatings.
1.2 Ratios
FR's Return On Assets of 0.75% is in line compared to the rest of the industry. FR outperforms 48.28% of its industry peers.
FR has a Return On Equity (4.36%) which is in line with its industry peers.
FR has a Return On Invested Capital (5.44%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FR is in line with the industry average of 6.36%.
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 in line with its industry peers.
FR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.28%, FR is doing worse than 62.07% of the companies in the same industry.
FR's Operating Margin has declined in the last couple of years.
The Gross Margin of FR (18.99%) is worse 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.
FR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FR has been increased compared to 5 years ago.
Compared to 1 year ago, FR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that FR is in the distress zone and has some risk of bankruptcy.
FR's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. FR is outperformed by 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.
A Debt/Equity ratio of 1.53 is on the high side and indicates that FR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.53, FR is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 14.47 | ||
| Altman-Z | 1.21 |
ROIC/WACC1.17
WACC4.65%
2.3 Liquidity
A Current Ratio of 0.81 indicates that FR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.81, FR is doing worse than 86.21% of the companies in the same industry.
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 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%.
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.
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
FR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.53% yearly.
The Revenue is expected to grow by 2.83% on average over the next years.
EPS Next Y103.92%
EPS Next 2Y82.7%
EPS Next 3Y64.53%
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y2.2%
Revenue Next 3Y2.83%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FR is valuated correctly with a Price/Earnings ratio of 13.44.
Compared to the rest of the industry, the Price/Earnings ratio of FR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FR to the average of the S&P500 Index (28.22), we can say FR is valued rather cheaply.
FR is valuated cheaply with a Price/Forward Earnings ratio of 6.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FR indicates a rather cheap valuation: FR is cheaper than 82.76% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FR to the average of the S&P500 Index (20.86), we can say FR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FR is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FR is valued a bit cheaper than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.53 | ||
| EV/EBITDA | 1.68 |
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.
FR's earnings are expected to grow with 64.53% in the coming years. This may justify a more expensive valuation.
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 4.78%, which is a nice return.
FR's Dividend Yield is a higher than the industry average which is at 5.47.
FR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
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
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 (5/2/2025, 7:00:00 PM)
8.872
+0.2 (+2.35%)
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 Cap2.17B
Analysts70
Price Target10.59 (19.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
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)-10.97%
PT rev (3m)-8.8%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-13.4%
EPS NY rev (3m)-30.32%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.32%
Revenue NY rev (3m)-2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 6.59 | ||
| P/S | 0.1 | ||
| P/FCF | 4.53 | ||
| P/OCF | 0.8 | ||
| P/B | 0.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.68 |
EPS(TTM)0.66
EY7.44%
EPS(NY)1.35
Fwd EY15.17%
FCF(TTM)1.96
FCFY22.07%
OCF(TTM)11.05
OCFY124.54%
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
WACC4.65%
ROIC/WACC1.17
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 Year0.65%
Revenue Next 2Y2.2%
Revenue Next 3Y2.83%
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%