Vallourec S.A. Fundamental Analysis
Vallourec S.A. (VLOUF) shows moderate financial fundamentals with a PE ratio of 11.77, profit margin of 10.44%, and ROE of 20.21%. The company generates $4.6B in annual revenue with weak year-over-year growth of -5.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VLOUF's fundamental strength across five key dimensions:
Efficiency Score
WeakVLOUF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVLOUF trades at attractive valuation levels.
Growth Score
WeakVLOUF faces weak or negative growth trends.
Financial Health Score
ExcellentVLOUF maintains a strong and stable balance sheet.
Profitability Score
ModerateVLOUF maintains healthy but balanced margins.
Key Financial Metrics
Is VLOUF Expensive or Cheap?
P/E Ratio
VLOUF trades at 11.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VLOUF's PEG of 1.40 indicates fair valuation.
Price to Book
The market values Vallourec S.A. at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.95 times EBITDA. This is generally considered low.
How Well Does VLOUF Make Money?
Net Profit Margin
For every $100 in sales, Vallourec S.A. keeps $10.44 as profit after all expenses.
Operating Margin
Core operations generate 15.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.21 in profit for every $100 of shareholder equity.
ROA
Vallourec S.A. generates $8.44 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 $652.44M, showing steady but balanced cash generation.
Free Cash Flow
Vallourec S.A. produces free cash flow of $436.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.86 in free cash annually.
FCF Yield
VLOUF converts 7.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.009
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How VLOUF Stacks Against Its Sector Peers
| Metric | VLOUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.77 | 25.01 | Better (Cheaper) |
| ROE | 20.21% | 1002.00% | Weak |
| Net Margin | 10.44% | -107149.00% (disorted) | Strong |
| Debt/Equity | 0.38 | 0.38 | Neutral |
| Current Ratio | 2.43 | 6.20 | Strong Liquidity |
| ROA | 8.44% | -5669.00% (disorted) | Weak |
VLOUF outperforms its industry in 3 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
-83.36%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
103.78%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
190.69%
Industry Style: Cyclical, Commodity, Value
High Growth