VALEO (FR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:FR - FR0013176526 - Common Stock
12.38 EUR
+0.09 (+0.73%)
Taking everything into account, FR scores 4 out of 10 in our fundamental rating. FR was compared to 32 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year FR was profitable.
- In the past year FR had a positive cash flow from operations.
- FR had positive earnings in 4 of the past 5 years.
- In the past 5 years FR always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 0.61%, FR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- The Return On Equity of FR (3.93%) is comparable to the rest of the industry.
- FR has a Return On Invested Capital of 6.06%. This is in the better half of the industry: FR outperforms 65.63% of its industry peers.
- FR had an Average Return On Invested Capital over the past 3 years of 4.55%. This is in line with the industry average of 6.33%.
- The last Return On Invested Capital (6.06%) for FR is above the 3 year average (4.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 3.93% | ||
| ROIC | 6.06% |
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's Profit Margin of 0.59% is in line compared to the rest of the industry. FR outperforms 53.13% of its industry peers.
- In the last couple of years the Profit Margin of FR has declined.
- The Operating Margin of FR (4.52%) is comparable to the rest of the industry.
- FR's Operating Margin has declined in the last couple of years.
- The Gross Margin of FR (19.59%) is worse than 68.75% 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 | 4.52% | ||
| PM (TTM) | 0.59% | ||
| GM | 19.59% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FR is still creating some value.
- The number of shares outstanding for FR has been reduced compared to 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 1.30. 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 (1.30) than 71.88% of its industry peers.
- FR has a debt to FCF ratio of 11.66. This is a negative value and a sign of low solvency as FR would need 11.66 years to pay back of all of its debts.
- FR has a Debt to FCF ratio (11.66) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.72 is on the high side and indicates that FR has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.72, FR is doing worse than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 11.66 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.12
WACC5.41%
2.3 Liquidity
- A Current Ratio of 0.79 indicates that FR may have some problems paying its short term obligations.
- FR's Current ratio of 0.79 is on the low side compared to the rest of the industry. FR is outperformed by 84.38% of its industry peers.
- FR has a Quick Ratio of 0.79. This is a bad value and indicates that FR is not financially healthy enough and could expect problems in meeting its short term obligations.
- FR has a Quick ratio of 0.61. This is amonst the worse of the industry: FR underperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 |
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 -4.16%.
- Measured over the past years, FR shows a small growth in Revenue. The Revenue has been growing by 1.99% on average per year.
EPS 1Y (TTM)-27.47%
EPS 3Y-2.75%
EPS 5Y-12.75%
EPS Q2Q%-26.25%
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y7.58%
Revenue growth 5Y1.99%
Sales Q2Q%-4.11%
3.2 Future
- Based on estimates for the next years, FR will show a very strong growth in Earnings Per Share. The EPS will grow by 46.61% on average per year.
- Based on estimates for the next years, FR will show a small growth in Revenue. The Revenue will grow by 0.81% on average per year.
EPS Next Y80.66%
EPS Next 2Y53.26%
EPS Next 3Y50.3%
EPS Next 5Y46.61%
Revenue Next Year-4.05%
Revenue Next 2Y-1.99%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.81%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.76, which indicates a rather expensive current valuation of FR.
- Compared to the rest of the industry, the Price/Earnings ratio of FR is on the same level as its industry peers.
- FR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- FR is valuated cheaply with a Price/Forward Earnings ratio of 7.99.
- Based on the Price/Forward Earnings ratio, FR is valued a bit cheaper than 75.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of FR to the average of the S&P500 Index (24.26), we can say FR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
- FR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FR is cheaper than 93.75% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FR indicates a somewhat cheap valuation: FR is cheaper than 71.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.38 | ||
| EV/EBITDA | 2.21 |
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.
- A more expensive valuation may be justified as FR's earnings are expected to grow with 50.30% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y53.26%
EPS Next 3Y50.3%
5. Dividend
5.1 Amount
- FR has a Yearly Dividend Yield of 3.47%.
- Compared to an average industry Dividend Yield of 2.94, FR has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, FR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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
- 82.40% of the earnings are spent on dividend by FR. This is not a sustainable payout ratio.
DP82.4%
EPS Next 2Y53.26%
EPS Next 3Y50.3%
VALEO / FR.PA FAQ
Can you provide the ChartMill fundamental rating for VALEO?
ChartMill assigns a fundamental rating of 4 / 10 to FR.PA.
What is the valuation status for FR stock?
ChartMill assigns a valuation rating of 7 / 10 to VALEO (FR.PA). This can be considered as Undervalued.
What is the profitability of FR stock?
VALEO (FR.PA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of VALEO (FR.PA) stock?
The Price/Earnings (PE) ratio for VALEO (FR.PA) is 18.76 and the Price/Book (PB) ratio is 0.96.
Can you provide the dividend sustainability for FR stock?
The dividend rating of VALEO (FR.PA) is 3 / 10 and the dividend payout ratio is 82.4%.