Valiant Holding (VATN) AI Stock Analysis

• Market Cap: CHF2.45B
• Dividend Yield: 3.88%
• Average Volume (3M): 12.81K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.26
• Revenue Growth: -12.47%
• EPS Growth: 2.74%
• Country: CH
• Employees: 1,018
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.91
• Shares Outstanding: 15,792,461
• 10 Day Avg. Volume: 13,808
• 30 Day Avg. Volume: 12,806
• PEG Ratio: 2.60
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 9.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF137.00
• Price Target Upside: -11.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: CHF164.00 ▲(5.67% Upside)

Valiant Holding's stock score is primarily influenced by its financial performance and valuation. The company shows strong profitability but faces challenges with revenue growth and leverage. The technical analysis suggests stability with potential undervaluation, while the reasonable P/E ratio and attractive dividend yield enhance its investment appeal.

Positive Factors

High gross profitability

Sustained extremely high gross margins indicate durable cost advantages or high-value offerings at the subsidiary level. This supports long-term operating leverage potential and provides margin buffer to fund investment, dividends, or restructuring across the diversified portfolio.

Material free cash flow improvement

A multi-year surge in free cash flow and a strong FCF-to-net-income ratio signal improving cash conversion and internal funding capacity. This enhances the firm's ability to reinvest in subsidiaries, pay steady dividends, or reduce leverage over the medium term.

Diversified acquisition-driven model

A diversified portfolio across sectors reduces single-market exposure and allows allocation of capital to higher-return subsidiaries. The firm’s operating model of acquiring and optimizing businesses provides structural optionality and resilience across economic cycles.

Negative Factors

High financial leverage

Very high leverage materially raises financial risk, constraining strategic flexibility and increasing vulnerability to revenue shocks or rising rates. Servicing debt can crowd out reinvestment, limit M&A optionality, and amplify downside in stress scenarios.

Weak and falling revenues

Persistent and steep revenue declines suggest structural demand or portfolio performance issues rather than transient weakness. Continued top-line erosion undermines scale benefits and makes sustaining margins, dividends, and deleveraging plans materially more challenging.

Poor operating cash conversion

Extremely weak conversion of reported income into operating cash raises concerns about earnings quality and short-term liquidity. This limits the company’s ability to fund capex, acquisitions, or debt repayment without relying on external financing.

Valiant Holding Business Overview & Revenue Model

Company Description

Valiant Holding AG, together with its subsidiaries, provides financial services to private retail clients, affluent private clients, self-employed individuals, and small and medium-sized companies. The company offers savings; real estate financing; loans for working capital and other basic services for businesses; unsecured and consumer loans; payment transaction services through its mobile banking app; and retirement planning and investment solutions, as well as electronic banking services. It operates 14 cantons in Switzerland. The company was founded in 1824 and is based in Lucerne, Switzerland.

How the Company Makes Money

Valiant Holding primarily generates revenue through its portfolio of subsidiary companies, which contribute to its earnings across multiple sectors. The company earns money by acquiring profitable businesses and optimizing their operations for better performance, resulting in increased sales and market share. Key revenue streams include direct sales from consumer products, service contracts in the healthcare sector, and technology licensing agreements. Additionally, Valiant Holding benefits from strategic partnerships with other firms, enabling access to new markets and enhancing product offerings, thereby further driving revenue growth.

Valiant Holding Financial Statement Overview

Summary

Valiant Holding shows strong profitability margins but struggles with revenue growth and high leverage. The significant improvement in free cash flow is positive, yet the low operating cash flow ratio indicates potential liquidity issues. Addressing revenue decline and managing debt levels are crucial for long-term stability.

Income Statement

Valiant Holding's income statement shows a mixed performance. The company has a strong gross profit margin consistently above 100%, indicating effective cost management. However, the net profit margin has fluctuated, with a recent decline to 27.26% from 30.44% in 2019. Revenue growth has been inconsistent, with a significant drop of 28.51% in the latest year, raising concerns about revenue stability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.41, indicating significant leverage, which could pose financial risks. However, the return on equity remains stable around 5.6%, suggesting efficient use of equity. The equity ratio is relatively low, reflecting a higher reliance on debt financing.

Cash Flow

Cash flow analysis shows a dramatic improvement in free cash flow growth, up by 1136.41%, which is a positive sign. However, the operating cash flow to net income ratio is very low at 0.0078, indicating potential issues in converting income into cash. The free cash flow to net income ratio is strong at 0.94, suggesting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	771.60M	833.33M	768.11M	514.49M	436.91M	438.62M
Gross Profit	551.66M	554.81M	555.54M	478.24M	433.12M	411.67M
EBITDA	208.41M	207.88M	208.35M	182.88M	169.61M	171.25M
Net Income	152.50M	150.38M	144.25M	129.51M	123.13M	121.87M
Balance Sheet
Total Assets	37.54B	37.12B	36.08B	35.73B	35.56B	33.18B
Cash, Cash Equivalents and Short-Term Investments	4.56B	4.21B	4.79B	5.10B	6.32B	5.29B
Total Debt	10.85B	10.18B	9.47B	8.43B	8.13B	7.24B
Total Liabilities	34.86B	34.45B	33.50B	33.26B	33.16B	30.82B
Stockholders Equity	2.68B	2.68B	2.58B	2.47B	2.40B	2.36B
Cash Flow
Free Cash Flow	0.00	174.43M	113.48M	-1.20B	1.07B	1.40B
Operating Cash Flow	0.00	186.02M	127.31M	-1.18B	1.08B	1.42B
Investing Cash Flow	0.00	-1.67B	-693.03M	-20.98M	-15.20M	-28.70M
Financing Cash Flow	0.00	915.20M	238.93M	-18.00K	1.94B	-62.00K

Valiant Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 155.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:VATN, the sentiment is Positive. The current price of 155.2 is below the 20-day moving average (MA) of 155.51, above the 50-day MA of 147.51, and above the 200-day MA of 131.01, indicating a neutral trend. The MACD of 2.43 indicates Positive momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 20.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:VATN.

Valiant Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VATN	61 Neutral	CHF2.45B	15.95	5.75%	3.88%	-12.47%	2.74%
BEKN	60 Neutral	CHF2.98B	16.42	7.71%	3.39%	-8.54%	3.88%
WKBN	―	CHF2.18B	25.44	5.30%	―	-8.80%	-5.90%
ZUGER	69 Neutral	CHF2.70B	20.27	8.80%	2.48%	-5.21%	9.22%
GRKP	65 Neutral	CHF1.51B	24.83	―	2.60%	―	―
LLBN	57 Neutral	CHF2.95B	17.47	―	3.34%	―	―