VALLOUREC SA (VK.PA) Stock Fundamental Analysis
Europe - EPA:VK - FR0013506730 - Common Stock
15.79 EUR
+0.5 (+3.3%)
VK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Energy Equipment & Services industry. VK scores excellent on profitability, but there are some minor concerns on its financial health. VK has a correct valuation and a medium 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.
The reported operating cash flow has been mixed in the past 5 years: VK reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.78%, VK belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
VK has a better Return On Equity (25.00%) than 81.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.49%, VK belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
VK had an Average Return On Invested Capital over the past 3 years of 12.51%. This is in line with the industry average of 11.44%.
The 3 year average ROIC (12.51%) for VK is below the current ROIC(16.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.78% | ||
| ROE | 25% | ||
| ROIC | 16.49% |
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
Looking at the Profit Margin, with a value of 9.14%, VK is in line with its industry, outperforming 59.46% of the companies in the same industry.
VK's Profit Margin has improved in the last couple of years.
VK has a Operating Margin of 14.52%. This is comparable to the rest of the industry: VK outperforms 59.46% of its industry peers.
In the last couple of years the Operating Margin of VK has grown nicely.
The Gross Margin of VK (29.64%) is better than 70.27% of its industry peers.
In the last couple of years the Gross Margin of VK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.52% | ||
| PM (TTM) | 9.14% | ||
| GM | 29.64% |
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.
Compared to 1 year ago, VK has more shares outstanding
VK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.65 indicates that VK is not a great score, but indicates only limited risk for bankruptcy at the moment.
VK's Altman-Z score of 2.65 is amongst the best of the industry. VK outperforms 81.08% of its industry peers.
The Debt to FCF ratio of VK is 2.64, which is a good value as it means it would take VK, 2.64 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.64, VK is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
VK has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
VK's Debt to Equity ratio of 0.44 is fine compared to the rest of the industry. VK outperforms 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 2.65 |
ROIC/WACC2.14
WACC7.72%
2.3 Liquidity
VK has a Current Ratio of 2.12. This indicates that VK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.12, VK is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that VK should not have too much problems paying its short term obligations.
VK's Quick ratio of 1.24 is in line compared to the rest of the industry. VK outperforms 56.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
VK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.59%.
VK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 121.70% yearly.
The Revenue for VK has decreased by -13.98% in the past year. This is quite bad
VK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.68% yearly.
EPS 1Y (TTM)-57.59%
EPS 3Y121.7%
EPS 5YN/A
EPS Q2Q%-65.22%
Revenue 1Y (TTM)-13.98%
Revenue growth 3Y5.43%
Revenue growth 5Y-0.68%
Sales Q2Q%-20.46%
3.2 Future
Based on estimates for the next years, VK will show a very strong growth in Earnings Per Share. The EPS will grow by 22.35% on average per year.
The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y55.63%
EPS Next 2Y33.06%
EPS Next 3Y29.48%
EPS Next 5Y22.35%
Revenue Next Year-3.46%
Revenue Next 2Y-0.47%
Revenue Next 3Y1.9%
Revenue Next 5Y2.11%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 22.56, which indicates a rather expensive current valuation of VK.
Compared to the rest of the industry, the Price/Earnings ratio of VK indicates a slightly more expensive valuation: VK is more expensive than 64.86% of the companies listed in the same industry.
VK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
VK is valuated reasonably with a Price/Forward Earnings ratio of 8.18.
VK's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.73. VK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VK is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as VK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.8 | ||
| EV/EBITDA | 3.08 |
4.3 Compensation for Growth
VK's 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 29.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y33.06%
EPS Next 3Y29.48%
5. Dividend
5.1 Amount
VK has a Yearly Dividend Yield of 9.81%, which is a nice return.
Compared to an average industry Dividend Yield of 6.65, VK pays a better dividend. On top of this VK pays more dividend than 89.19% of the companies listed in the same industry.
VK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.81% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y33.06%
EPS Next 3Y29.48%
EPA:VK (9/12/2025, 7:00:00 PM)
15.79
+0.5 (+3.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners46.17%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap3.70B
Analysts82.22
Price Target21.05 (33.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.81% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.89%
Min EPS beat(2)-54.31%
Max EPS beat(2)-17.48%
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)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-7.01%
Max Revenue beat(2)5.15%
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)0.68%
PT rev (3m)-1.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.73%
EPS NY rev (3m)-5.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-4.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 8.18 | ||
| P/S | 0.65 | ||
| P/FCF | 9.8 | ||
| P/OCF | 6.84 | ||
| P/B | 1.78 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 3.08 |
EPS(TTM)0.7
EY4.43%
EPS(NY)1.93
Fwd EY12.22%
FCF(TTM)1.61
FCFY10.2%
OCF(TTM)2.31
OCFY14.63%
SpS24.32
BVpS8.89
TBVpS8.6
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.78% | ||
| ROE | 25% | ||
| ROCE | 23.09% | ||
| ROIC | 16.49% | ||
| ROICexc | 22% | ||
| ROICexgc | 22.57% | ||
| OM | 14.52% | ||
| PM (TTM) | 9.14% | ||
| GM | 29.64% | ||
| FCFM | 6.63% |
ROA(3y)3.34%
ROA(5y)-2.61%
ROE(3y)6.23%
ROE(5y)N/A
ROIC(3y)12.51%
ROIC(5y)N/A
ROICexc(3y)16.27%
ROICexc(5y)N/A
ROICexgc(3y)16.68%
ROICexgc(5y)N/A
ROCE(3y)17.62%
ROCE(5y)N/A
ROICexcg growth 3Y27.28%
ROICexcg growth 5Y59.28%
ROICexc growth 3Y27.52%
ROICexc growth 5Y65.05%
OM growth 3Y21.08%
OM growth 5Y74.02%
PM growth 3Y113.66%
PM growth 5YN/A
GM growth 3Y6.63%
GM growth 5Y10.76%
F-Score4
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 48.72% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 13.77 | ||
| Cash Conversion | 46.53% | ||
| Profit Quality | 72.52% | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.65 |
F-Score4
WACC7.72%
ROIC/WACC2.14
Cap/Depr(3y)153.16%
Cap/Depr(5y)113.35%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-57.59%
EPS 3Y121.7%
EPS 5YN/A
EPS Q2Q%-65.22%
EPS Next Y55.63%
EPS Next 2Y33.06%
EPS Next 3Y29.48%
EPS Next 5Y22.35%
Revenue 1Y (TTM)-13.98%
Revenue growth 3Y5.43%
Revenue growth 5Y-0.68%
Sales Q2Q%-20.46%
Revenue Next Year-3.46%
Revenue Next 2Y-0.47%
Revenue Next 3Y1.9%
Revenue Next 5Y2.11%
EBIT growth 1Y-24.86%
EBIT growth 3Y27.66%
EBIT growth 5Y72.85%
EBIT Next Year60.56%
EBIT Next 3Y25.46%
EBIT Next 5Y19.51%
FCF growth 1Y-15.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.24%
OCF growth 3YN/A
OCF growth 5Y32.63%