Vallourec S.A.
Vallourec S.A. Fundamental Analysis
Vallourec S.A. (VK.PA) shows moderate financial fundamentals with a PE ratio of 10.42, profit margin of 10.35%, and ROE of 21.20%. The company generates $4.7B in annual revenue with weak year-over-year growth of -21.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VK.PA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVK.PA demonstrates superior asset utilization.
Valuation Score
ExcellentVK.PA trades at attractive valuation levels.
Growth Score
WeakVK.PA faces weak or negative growth trends.
Financial Health Score
ExcellentVK.PA maintains a strong and stable balance sheet.
Profitability Score
ModerateVK.PA maintains healthy but balanced margins.
Key Financial Metrics
Is VK.PA Expensive or Cheap?
P/E Ratio
VK.PA trades at 10.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VK.PA's PEG of 0.70 indicates potential undervaluation.
Price to Book
The market values Vallourec S.A. at 2.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.19 times EBITDA. This is generally considered low.
How Well Does VK.PA Make Money?
Net Profit Margin
For every $100 in sales, Vallourec S.A. keeps $10.35 as profit after all expenses.
Operating Margin
Core operations generate 15.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.20 in profit for every $100 of shareholder equity.
ROA
Vallourec S.A. generates $10.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vallourec S.A. produces operating cash flow of $639.19M, showing steady but balanced cash generation.
Free Cash Flow
Vallourec S.A. produces free cash flow of $423.90M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.81 in free cash annually.
FCF Yield
VK.PA converts 8.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How VK.PA Stacks Against Its Sector Peers
| Metric | VK.PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.42 | 23.49 | Better (Cheaper) |
| ROE | 21.20% | 883.00% | Weak |
| Net Margin | 10.35% | -94454.00% (disorted) | Strong |
| Debt/Equity | 0.42 | 0.51 | Neutral |
| Current Ratio | 2.31 | 5.14 | Strong Liquidity |
| ROA | 10.00% | -6300.00% (disorted) | Strong |
VK.PA outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vallourec S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-86.08%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
119.36%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-40.85%
Industry Style: Cyclical, Commodity, Value
Declining