VALLOUREC SA (VK.PA)
FR0013506730 - Common Stock
We assign a fundamental rating of 5 out of 10 to VK. 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make VK suitable for value investing!
1. Profitability
1.1 Basic Checks
VK had positive earnings in the past year.
In the past year VK had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VK reported negative net income in multiple years.
In multiple years VK reported negative operating cash flow during the last 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.74%, VK belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
VK has a Return On Equity of 33.75%. This is amongst the best in the industry. VK outperforms 91.89% of its industry peers.
The Return On Invested Capital of VK (23.04%) is better than 94.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VK is significantly below the industry average of 15.26%.
The 3 year average ROIC (10.11%) for VK is below the current ROIC(23.04%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
The Profit Margin of VK (9.59%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 18.90%, VK is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
Looking at the Gross Margin, with a value of 30.68%, VK is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
In the last couple of years the Gross Margin of VK has grown nicely.
| Industry Rank | Sector 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%
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 2.79 indicates that VK is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VK (2.79) is better than 75.68% 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.
Looking at the Debt to FCF ratio, with a value of 3.06, VK is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that VK is somewhat dependend on debt financing.
VK's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. VK outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 2.79 |
ROIC/WACC3.27
WACC7.05%
2.3 Liquidity
A Current Ratio of 2.00 indicates that VK should not have too much problems paying its short term obligations.
VK has a better Current ratio (2.00) than 72.97% of its industry peers.
A Quick Ratio of 1.22 indicates that VK should not have too much problems paying its short term obligations.
VK has a Quick ratio of 1.22. This is comparable to the rest of the industry: VK outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
VK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 403.11%, which is quite impressive.
Looking at the last year, VK shows a decrease in Revenue. The Revenue has decreased by -3.43% in the last year.
VK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.42% yearly.
EPS 1Y (TTM)403.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-31.86%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y5.37%
Revenue growth 5Y5.42%
Sales Q2Q%-26.01%
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 34.62% on average per year.
Based on estimates for the next years, VK will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y253.71%
EPS Next 2Y80.76%
EPS Next 3Y53.49%
EPS Next 5Y34.62%
Revenue Next Year7.58%
Revenue Next 2Y-1.83%
Revenue Next 3Y-0.03%
Revenue Next 5Y2.26%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.13 indicates a reasonable valuation of VK.
VK's Price/Earnings ratio is a bit cheaper when compared to the industry. VK is cheaper than 72.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.41. VK is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.16 indicates a rather cheap valuation of VK.
Based on the Price/Forward Earnings ratio, VK is valued a bit cheaper than the industry average as 67.57% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.59. VK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, VK is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.82 | ||
| 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.
VK has a very decent profitability rating, which may justify a higher PE ratio.
VK's earnings are expected to grow with 53.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y80.76%
EPS Next 3Y53.49%
5. Dividend
5.1 Amount
VK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VALLOUREC SA
EPA:VK (7/26/2024, 7:00:00 PM)
14.8
+0.43 (+2.96%)
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 Cap3.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 7.16 | ||
| 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)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)403.11%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y253.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.43%
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