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VALLOUREC SA (VK.PA) Stock Fundamental Analysis

EPA:VK - Euronext Paris - Matif - FR0013506730 - Common Stock - Currency: EUR

16.375  -0.25 (-1.5%)

Fundamental Rating

6

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!


Dividend Valuation Growth Profitability Health

7

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.
VK.PA Yearly Net Income VS EBIT VS OCF VS FCFVK.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M -1B

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 RankSector 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
VK.PA Yearly ROA, ROE, ROICVK.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 400 600

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 RankSector 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%
VK.PA Yearly Profit, Operating, Gross MarginsVK.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

6

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.
VK.PA Yearly Shares OutstandingVK.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
VK.PA Yearly Total Debt VS Total AssetsVK.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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 RankSector Rank
Debt/Equity 0.43
Debt/FCF 3.65
Altman-Z 2.6
ROIC/WACC2.04
WACC7.67%
VK.PA Yearly LT Debt VS Equity VS FCFVK.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

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 RankSector Rank
Current Ratio 2.14
Quick Ratio 1.36
VK.PA Yearly Current Assets VS Current LiabilitesVK.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

4

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.
VK.PA Yearly Revenue VS EstimatesVK.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
VK.PA Yearly EPS VS EstimatesVK.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 10 -10 -20 -30

7

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 RankSector Rank
PE 16.38
Fwd PE 6.97
VK.PA Price Earnings VS Forward Price EarningsVK.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 11.96
EV/EBITDA 3.58
VK.PA Per share dataVK.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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%

6

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 RankSector Rank
Dividend Yield 9.21%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
VK.PA Yearly Dividends per shareVK.PA Yearly Dividends per shareYearly Dividends per share 2025 0.5 1

5.3 Sustainability

DP0%
EPS Next 2Y46.8%
EPS Next 3Y38.81%
VK.PA Yearly Income VS Free CF VS DividendVK.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500M -1B

VALLOUREC SA

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)05-15 2025-05-15/bmo
Earnings (Next)07-25 2025-07-25/bmo
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%