VALLOUREC SA (VK.PA)

FR0013506730 - Common Stock

16.665  -0.35 (-2.06%)

Fundamental Rating

5

Taking everything into account, VK scores 5 out of 10 in our fundamental rating. VK was compared to 39 industry peers in the Energy Equipment & Services industry. VK has only an average score on both its financial health and profitability. VK has a correct valuation and a medium growth rate.



6

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

Looking at the Return On Assets, with a value of 12.74%, 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 (33.75%) than 89.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.04%, VK belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VK is below the industry average of 14.90%.
The 3 year average ROIC (10.11%) for VK is below the current ROIC(23.04%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 12.74%
ROE 33.75%
ROIC 23.04%
ROA(3y)0.89%
ROA(5y)-5.17%
ROE(3y)0.98%
ROE(5y)N/A
ROIC(3y)10.11%
ROIC(5y)N/A

1.3 Margins

With a Profit Margin value of 9.59%, VK perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
VK has a better Operating Margin (18.90%) than 67.57% of its industry peers.
With a decent Gross Margin value of 30.68%, VK is doing good in the industry, outperforming 67.57% of the companies in the same industry.
VK's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 18.9%
PM (TTM) 9.59%
GM 30.68%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.45%
GM growth 5Y16.14%

5

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.
The number of shares outstanding for VK has been increased compared to 1 year ago.
The number of shares outstanding for VK has been increased compared to 5 years ago.
VK has a better debt/assets ratio than last year.

2.2 Solvency

VK has an Altman-Z score of 2.90. This is not the best score and indicates that VK is in the grey zone with still only limited risk for bankruptcy at the moment.
VK has a better Altman-Z score (2.90) than 78.38% of its industry peers.
The Debt to FCF ratio of VK is 3.06, which is a good value as it means it would take VK, 3.06 years of fcf income to pay off all of its debts.
VK has a better Debt to FCF ratio (3.06) than 72.97% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that VK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, VK is in line with its industry, outperforming 48.65% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.06
Altman-Z 2.9
ROIC/WACC3.3
WACC6.99%

2.3 Liquidity

VK has a Current Ratio of 2.00. This is a normal value and indicates that VK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VK (2.00) is better than 67.57% of its industry peers.
VK has a Quick Ratio of 1.22. This is a normal value and indicates that VK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VK (1.22) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.22

4

3. Growth

3.1 Past

VK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1041.18%.
Looking at the last year, VK shows a very strong growth in Revenue. The Revenue has grown by 41.87%.
VK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.42% yearly.
EPS 1Y (TTM)-1041.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)41.87%
Revenue growth 3Y5.37%
Revenue growth 5Y5.42%
Sales Q2Q%-26.09%

3.2 Future

VK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.96% yearly.
Based on estimates for the next years, VK will show a small growth in Revenue. The Revenue will grow by 2.88% on average per year.
EPS Next Y253.71%
EPS Next 2Y82.35%
EPS Next 3Y54.19%
EPS Next 5Y32.96%
Revenue Next Year7.58%
Revenue Next 2Y0.26%
Revenue Next 3Y0.89%
Revenue Next 5Y2.88%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.01 indicates a rather expensive valuation of VK.
The rest of the industry has a similar Price/Earnings ratio as VK.
VK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.72, the valuation of VK can be described as very cheap.
78.38% of the companies in the same industry are more expensive than VK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VK to the average of the S&P500 Index (19.80), we can say VK is valued rather cheaply.
Industry RankSector Rank
PE 17.01
Fwd PE 7.72

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, VK is valued a bit cheaper than 67.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.68
EV/EBITDA N/A

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.
The decent profitability rating of VK may justify a higher PE ratio.
A more expensive valuation may be justified as VK's earnings are expected to grow with 54.19% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y82.35%
EPS Next 3Y54.19%

0

5. Dividend

5.1 Amount

No dividends for VK!.
Industry RankSector Rank
Dividend Yield N/A

VALLOUREC SA

EPA:VK (5/29/2024, 5:35:30 PM)

16.665

-0.35 (-2.06%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.83B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.01
Fwd PE 7.72
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.07
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 12.74%
ROE 33.75%
ROCE
ROIC
ROICexc
ROICexgc
OM 18.9%
PM (TTM) 9.59%
GM 30.68%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.33
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2
Quick Ratio 1.22
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-1041.18%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y253.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)41.87%
Revenue growth 3Y5.37%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y