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FR

ValeoENXTPA:FR Stock Report

Last Price

€25.68

Market Cap

€6.2b

7D

-5.6%

1Y

-18.8%

Updated

21 Jan, 2022

Data

Company Financials +
FR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends2/6

FR Stock Overview

Valeo SE designs, produces, and sells components, systems, and services for automakers in France, North America, South America, Asia, Africa, and other European countries.

Valeo Competitors

Faurecia

ENXTPA:EO

€5.6b

Compagnie Plastic Omnium

ENXTPA:POM

€3.2b

Delfingen Industry

ENXTPA:ALDEL

€147.7m

Toyota Motor

TSE:7203

JP¥31.6t

Price History & Performance

Summary of all time highs, changes and price drops for Valeo
Historical stock prices
Current Share Price€25.68
52 Week High€33.66
52 Week Low€20.47
Beta2
1 Month Change-0.19%
3 Month Change4.69%
1 Year Change-18.81%
3 Year Change-7.86%
5 Year Change-55.46%
Change since IPO215.05%

Recent News & Updates

Dec 16
Valeo (EPA:FR) Might Be Having Difficulty Using Its Capital Effectively

Valeo (EPA:FR) Might Be Having Difficulty Using Its Capital Effectively

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Nov 11
Is Valeo SE (EPA:FR) Trading At A 24% Discount?

Is Valeo SE (EPA:FR) Trading At A 24% Discount?

In this article we are going to estimate the intrinsic value of Valeo SE ( EPA:FR ) by projecting its future cash flows...

Oct 07
Is Valeo (EPA:FR) Using Too Much Debt?

Is Valeo (EPA:FR) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 01
Some Investors May Be Worried About Valeo's (EPA:FR) Returns On Capital

Some Investors May Be Worried About Valeo's (EPA:FR) Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Shareholder Returns

FRFR Auto ComponentsFR Market
7D-5.6%-2.4%-0.2%
1Y-18.8%8.7%23.7%

Return vs Industry: FR underperformed the French Auto Components industry which returned 8.7% over the past year.

Return vs Market: FR underperformed the French Market which returned 23.7% over the past year.

Price Volatility

Is FR's price volatile compared to industry and market?
FR volatility
FR Average Weekly Movement4.7%
Auto Components Industry Average Movement4.6%
Market Average Movement4.5%
10% most volatile stocks in FR Market9.8%
10% least volatile stocks in FR Market2.5%

Stable Share Price: FR is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1923110,300Jacques Aschenbroichhttps://www.valeo.com

Valeo SE designs, produces, and sells components, systems, and services for automakers in France, North America, South America, Asia, Africa, and other European countries. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems.

Valeo Fundamentals Summary

How do Valeo's earnings and revenue compare to its market cap?
FR fundamental statistics
Market Cap€6.21b
Earnings (TTM)€216.00m
Revenue (TTM)€18.37b

28.7x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FR income statement (TTM)
Revenue€18.37b
Cost of Revenue€15.14b
Gross Profit€3.23b
Expenses€3.02b
Earnings€216.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.89
Gross Margin17.60%
Net Profit Margin1.18%
Debt/Equity Ratio126.9%

How did FR perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

33%

Payout Ratio

Valuation

Is Valeo undervalued compared to its fair value and its price relative to the market?

5.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FR (€25.68) is trading below our estimate of fair value (€27.08)

Significantly Below Fair Value: FR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FR is poor value based on its PE Ratio (28.7x) compared to the French Auto Components industry average (11.1x).

PE vs Market: FR is poor value based on its PE Ratio (28.7x) compared to the French market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: FR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: FR is overvalued based on its PB Ratio (1.9x) compared to the FR Auto Components industry average (1.7x).


Future Growth

How is Valeo forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

47.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FR's forecast earnings growth (47.7% per year) is above the savings rate (0.3%).

Earnings vs Market: FR's earnings (47.7% per year) are forecast to grow faster than the French market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FR's revenue (9.1% per year) is forecast to grow faster than the French market (6.2% per year).

High Growth Revenue: FR's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FR's Return on Equity is forecast to be low in 3 years time (16.3%).


Past Performance

How has Valeo performed over the past 5 years?

-53.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FR has a large one-off loss of €182.0M impacting its June 30 2021 financial results.

Growing Profit Margin: FR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FR's earnings have declined by 53.4% per year over the past 5 years.

Accelerating Growth: FR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (84.4%).


Return on Equity

High ROE: FR's Return on Equity (6.8%) is considered low.


Financial Health

How is Valeo's financial position?


Financial Position Analysis

Short Term Liabilities: FR's short term assets (€7.3B) do not cover its short term liabilities (€8.3B).

Long Term Liabilities: FR's short term assets (€7.3B) exceed its long term liabilities (€5.9B).


Debt to Equity History and Analysis

Debt Level: FR's net debt to equity ratio (70.9%) is considered high.

Reducing Debt: FR's debt to equity ratio has increased from 67% to 126.9% over the past 5 years.

Debt Coverage: FR's debt is well covered by operating cash flow (55%).

Interest Coverage: FR's interest payments on its debt are well covered by EBIT (16.1x coverage).


Balance Sheet


Dividend

What is Valeo current dividend yield, its reliability and sustainability?

1.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FR's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.32%).

High Dividend: FR's dividend (1.17%) is low compared to the top 25% of dividend payers in the French market (3.88%).


Stability and Growth of Payments

Stable Dividend: FR's dividend payments have been volatile in the past 10 years.

Growing Dividend: FR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.3%), FR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FR's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.0yrs

Average management tenure


CEO

Jacques Aschenbroich (67 yo)

12.83yrs

Tenure

€4,032,910

Compensation

Mr. Jacques Aschenbroich has been Director at TotalEnergies SE since May 28, 2021. He has been the Chairman at Valeo SE (formerly known as Valeo SA) since February 18, 2016 and also its Chief Executive Off...


CEO Compensation Analysis

Compensation vs Market: Jacques's total compensation ($USD4.57M) is above average for companies of similar size in the French market ($USD2.24M).

Compensation vs Earnings: Jacques's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FR's management team is seasoned and experienced (10 years average tenure).


Board Members

Experienced Board: FR's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Valeo SE's employee growth, exchange listings and data sources


Key Information

  • Name: Valeo SE
  • Ticker: FR
  • Exchange: ENXTPA
  • Founded: 1923
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: €6.206b
  • Shares outstanding: 241.68m
  • Website: https://www.valeo.com

Number of Employees


Location

  • Valeo SE
  • 43, Rue Bayen
  • Paris
  • Ile-de-France
  • 75017
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:16
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.