VALLOUREC SA (VK.PA) Stock Fundamental Analysis
EPA:VK - Euronext Paris - Matif - FR0013506730 - Common Stock - Currency: EUR
Overall VK gets a fundamental rating of 6 out of 10. We evaluated VK against 36 industry peers in the Energy Equipment & Services industry. While VK has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VK. This makes VK very considerable for value investing!
1. Profitability
1.1 Basic Checks
VK had positive earnings in the past year.
VK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VK reported negative net income in multiple 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
VK's Return On Assets of 11.39% is amongst the best of the industry. VK outperforms 91.67% of its industry peers.
VK has a Return On Equity of 25.08%. This is amongst the best in the industry. VK outperforms 86.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.68%, VK belongs to the top of the industry, outperforming 86.11% 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 11.43%.
The 3 year average ROIC (12.51%) for VK is below the current ROIC(15.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 25.08% | ||
| ROIC | 15.68% |
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
VK has a Profit Margin of 10.65%. This is in the better half of the industry: VK outperforms 69.44% of its industry peers.
In the last couple of years the Profit Margin of VK has grown nicely.
Looking at the Operating Margin, with a value of 15.23%, VK is in line with its industry, outperforming 58.33% of the companies in the same industry.
VK's Operating Margin has improved in the last couple of years.
VK has a better Gross Margin (29.92%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of VK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.23% | ||
| PM (TTM) | 10.65% | ||
| GM | 29.92% |
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 2.60 indicates that VK is not a great score, but indicates only limited risk for bankruptcy at the moment.
VK's Altman-Z score of 2.60 is fine compared to the rest of the industry. VK outperforms 77.78% of its industry peers.
VK has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as VK would need 3.65 years to pay back of all of its debts.
VK has a better Debt to FCF ratio (3.65) than 61.11% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that VK is not too dependend on debt financing.
VK has a better Debt to Equity ratio (0.43) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 2.6 |
ROIC/WACC2.04
WACC7.67%
2.3 Liquidity
A Current Ratio of 2.14 indicates that VK has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.14, VK is doing good in the industry, outperforming 72.22% of the companies in the same industry.
VK has a Quick Ratio of 1.36. This is a normal value and indicates that VK is financially healthy and should not expect problems in meeting its short term obligations.
VK's Quick ratio of 1.36 is in line compared to the rest of the industry. VK outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for VK have decreased strongly by -24.64% in the last year.
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 -18.31% in the past year. This is quite bad
The Revenue has been decreasing by -0.68% on average over the past years.
EPS 1Y (TTM)-24.64%
EPS 3Y121.7%
EPS 5YN/A
EPS Q2Q%-20.93%
Revenue 1Y (TTM)-18.31%
Revenue growth 3Y5.43%
Revenue growth 5Y-0.68%
Sales Q2Q%0.1%
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 25.24% on average per year.
Based on estimates for the next years, VK will show a small growth in Revenue. The Revenue will grow by 0.43% on average per year.
EPS Next Y65.08%
EPS Next 2Y46.8%
EPS Next 3Y38.81%
EPS Next 5Y25.24%
Revenue Next Year0.66%
Revenue Next 2Y2.32%
Revenue Next 3Y3.6%
Revenue Next 5Y0.43%
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
A Price/Earnings ratio of 16.38 indicates a correct valuation of VK.
VK's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.35. VK is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 6.97, the valuation of VK can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VK indicates a somewhat cheap valuation: VK is cheaper than 61.11% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VK to the average of the S&P500 Index (37.54), we can say VK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VK indicates a somewhat cheap valuation: VK is cheaper than 77.78% of the companies listed in the same industry.
VK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.96 | ||
| EV/EBITDA | 3.58 |
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.
A more expensive valuation may be justified as VK's earnings are expected to grow with 38.81% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y46.8%
EPS Next 3Y38.81%
5. Dividend
5.1 Amount
VK has a Yearly Dividend Yield of 9.21%, which is a nice return.
VK's Dividend Yield is rather good when compared to the industry average which is at 6.57. VK pays more dividend than 86.11% of the companies in the same industry.
VK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.21% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y46.8%
EPS Next 3Y38.81%
EPA:VK (7/25/2025, 4:03:46 PM)
16.375
-0.25 (-1.5%)
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 Cap3.84B
Analysts81.18
Price Target20.91 (27.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.21% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
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)-2.09%
PT rev (3m)-6.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.65 | ||
| P/FCF | 11.96 | ||
| P/OCF | 7.87 | ||
| P/B | 1.53 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 3.58 |
EPS(TTM)1
EY6.11%
EPS(NY)2.35
Fwd EY14.34%
FCF(TTM)1.37
FCFY8.36%
OCF(TTM)2.08
OCFY12.71%
SpS25.25
BVpS10.72
TBVpS10.43
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 25.08% | ||
| ROCE | 22.37% | ||
| ROIC | 15.68% | ||
| ROICexc | 19.66% | ||
| ROICexgc | 20.07% | ||
| OM | 15.23% | ||
| PM (TTM) | 10.65% | ||
| GM | 29.92% | ||
| FCFM | 5.42% |
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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 66.99% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 9.29 | ||
| Cash Conversion | 42.4% | ||
| Profit Quality | 50.94% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.6 |
F-Score4
WACC7.67%
ROIC/WACC2.04
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)-24.64%
EPS 3Y121.7%
EPS 5YN/A
EPS Q2Q%-20.93%
EPS Next Y65.08%
EPS Next 2Y46.8%
EPS Next 3Y38.81%
EPS Next 5Y25.24%
Revenue 1Y (TTM)-18.31%
Revenue growth 3Y5.43%
Revenue growth 5Y-0.68%
Sales Q2Q%0.1%
Revenue Next Year0.66%
Revenue Next 2Y2.32%
Revenue Next 3Y3.6%
Revenue Next 5Y0.43%
EBIT growth 1Y-37.2%
EBIT growth 3Y27.66%
EBIT growth 5Y72.85%
EBIT Next Year60.56%
EBIT Next 3Y25.46%
EBIT Next 5Y19.08%
FCF growth 1Y-33.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.82%
OCF growth 3YN/A
OCF growth 5Y32.63%