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VK

Vallourec ENXTPA:VK Stock Report

Last Price

€12.78

Market Cap

€2.9b

7D

11.2%

1Y

-58.4%

Updated

17 May, 2022

Data

Company Financials +
VK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance2/6
Financial Health2/6
Dividends0/6

VK Stock Overview

Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and energy markets in Europe, North America, South America, Asia, and internationally.

Vallourec Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vallourec
Historical stock prices
Current Share Price€12.78
52 Week High€31.66
52 Week Low€6.01
Beta3.5
1 Month Change6.73%
3 Month Change51.01%
1 Year Change-58.44%
3 Year Change-87.01%
5 Year Change-94.74%
Change since IPO-90.87%

Recent News & Updates

Shareholder Returns

VKFR Energy ServicesFR Market
7D11.2%10.0%5.1%
1Y-58.4%9.0%-2.6%

Return vs Industry: VK underperformed the French Energy Services industry which returned 8.5% over the past year.

Return vs Market: VK underperformed the French Market which returned -4.1% over the past year.

Price Volatility

Is VK's price volatile compared to industry and market?
VK volatility
VK Average Weekly Movement10.5%
Energy Services Industry Average Movement8.3%
Market Average Movement6.2%
10% most volatile stocks in FR Market10.6%
10% least volatile stocks in FR Market3.6%

Stable Share Price: VK is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: VK's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

FoundedEmployeesCEOWebsite
189915,875Philippe Guillemothttps://www.vallourec.com

Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and energy markets in Europe, North America, South America, Asia, and internationally. It operates through Seamless Tubes and Specialty Products segments. The company offers seamless tubes for refineries, petrochemical facilities, and floating liquefied natural gas plants, as well as production, storage, and offloading units; casings; tubings; VAM connections; rigid subsea line pipes, onshore rigid line pipes, and specialized tubes for transportation of oil and gas; and carbon steel and steel alloy tubes, hollow bars, and connections for the processing of industrial fluids, and oil and gas.

Vallourec Fundamentals Summary

How do Vallourec's earnings and revenue compare to its market cap?
VK fundamental statistics
Market Cap€2.92b
Earnings (TTM)€39.55m
Revenue (TTM)€3.44b

73.9x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VK income statement (TTM)
Revenue€3.44b
Cost of Revenue€2.61b
Gross Profit€836.58m
Other Expenses€797.04m
Earnings€39.55m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 18, 2022

Earnings per share (EPS)0.17
Gross Margin24.31%
Net Profit Margin1.15%
Debt/Equity Ratio87.2%

How did VK perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


73.9x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: VK (€12.78) is trading above our estimate of fair value (€10.56)

Significantly Below Fair Value: VK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VK is poor value based on its PE Ratio (73.9x) compared to the European Energy Services industry average (12.6x).

PE vs Market: VK is poor value based on its PE Ratio (73.9x) compared to the French market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: VK is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: VK is overvalued based on its PB Ratio (1.7x) compared to the XE Energy Services industry average (1x).


Future Growth

How is Vallourec forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


32.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VK's forecast earnings growth (32.1% per year) is above the savings rate (0.3%).

Earnings vs Market: VK's earnings (32.1% per year) are forecast to grow faster than the French market (11.8% per year).

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

Revenue vs Market: VK's revenue (6.7% per year) is forecast to grow faster than the French market (5.7% per year).

High Growth Revenue: VK's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VK's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

How has Vallourec performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VK has a large one-off gain of €70.0M impacting its December 31 2021 financial results.

Growing Profit Margin: VK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VK has become profitable over the past 5 years, growing earnings by -1.6% per year.

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

Earnings vs Industry: VK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-29.4%).


Return on Equity

High ROE: VK's Return on Equity (1.7%) is considered low.


Financial Health

How is Vallourec's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VK's short term assets (€2.5B) exceed its short term liabilities (€1.3B).

Long Term Liabilities: VK's short term assets (€2.5B) exceed its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: VK's net debt to equity ratio (52.5%) is considered high.

Reducing Debt: VK's debt to equity ratio has increased from 66.9% to 87.2% over the past 5 years.

Debt Coverage: VK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: VK's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.24%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate VK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VK's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: VK is not paying a notable dividend for the French market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VK has not reported any payouts.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Philippe Guillemot (62 yo)

0.17

Tenure

Mr. Philippe Guillemot serves as Chairman and the Chief Executive Officer at Vallourec S.A. since March 20, 2022. He had been the Chief Executive Officer of Elior Group S.A. since December 5, 2017 until Ma...


Leadership Team

Experienced Management: VK's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: VK's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 1898%.


Top Shareholders

Company Information

Vallourec S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Vallourec S.A.
  • Ticker: VK
  • Exchange: ENXTPA
  • Founded: 1899
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: €2.922b
  • Shares outstanding: 228.74m
  • Website: https://www.vallourec.com

Number of Employees


Location

  • Vallourec S.A.
  • 12, rue de la Verrerie
  • Boulogne-Billancourt
  • Ile-de-France
  • 92190
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.