Valeo (FR) AI Stock Analysis

• Market Cap: €2.30B
• Dividend Yield: 3.86%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.84
• Revenue Growth: -2.50%
• EPS Growth: -26.84%
• Country: FR
• Employees: 106,100
• Sector: Industrials
• Sector Strength: 87
• Industry: Auto - Parts
• EPS (TTM): -1.25
• Shares Outstanding: 244,633,500
• 10 Day Avg. Volume: 1,455,618
• 30 Day Avg. Volume: 1,210,072
• PEG Ratio: 0.58
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.62
• 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: €11.33
• Price Target Upside: 19.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: €10.00 ▲(5.37%Upside)

Valeo's stock score is driven primarily by its solid financial performance and attractive valuation. The company shows good revenue growth, profitability, and efficient cash generation. Technical indicators suggest stable market conditions. The absence of significant earnings call data and corporate events means these factors did not affect the overall score.

Positive Factors

Earnings

2025 guidance came above expectations, with continued focus on margin improvements.

Market Leadership

Valeo is a global leader in technologies for driver assistance, electrification, lighting, and the interior cabin experience, with a #1 market leadership in automotive cameras and other ADAS components.

Negative Factors

Market Risks

Key risks include EU/US exposure and slower-than-expected adoption of ADAS/AD/EVs.

Valeo Business Overview & Revenue Model

Company Description

Valeo is a French multinational automotive supplier headquartered in Paris, France. The company is focused on designing, manufacturing, and selling components, integrated systems, and services for both the automotive and aftermarket sectors. Valeo operates in four main business segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. The company is known for its innovation in automotive technology, including electric and autonomous vehicles, enhancing vehicle performance, safety, and comfort.

How the Company Makes Money

Valeo makes money primarily through the design, production, and sale of automotive components and systems to car manufacturers and the aftermarket. The company generates revenue from its four main business segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. Key revenue streams include sales of advanced driver-assistance systems (ADAS), powertrain electrification solutions, climate control systems, and lighting systems. Valeo also earns from licensing its technology and entering into strategic partnerships with other automotive firms to develop innovative solutions for electric and autonomous vehicles. The company's focus on R&D and its ability to adapt to evolving automotive trends, such as electrification and automation, significantly contribute to its earnings.

Valeo Financial Statement Overview

Summary

Valeo demonstrates solid financial health with strong revenue growth and improving margins. Despite a slight increase in leverage, the company's cost management and cash generation capabilities indicate a positive trajectory.

Income Statement

Valeo has shown strong revenue growth over the years with a notable recovery from the 2020 downturn. The gross profit margin is healthy and improving, indicating effective cost management. The net profit margin is relatively low, but positive trends in EBIT and EBITDA margins suggest operational improvements. Overall, the income statement reflects a positive trajectory with room for enhanced profitability.

Balance Sheet

The company's debt-to-equity ratio has increased slightly, indicating higher leverage, but remains within industry norms. The return on equity shows moderate profitability. The equity ratio is stable, reflecting a balanced asset structure. The balance sheet indicates a sound financial position with manageable debt levels, although further equity strengthening could reduce leverage risks.

Cash Flow

Operating cash flow is strong, consistently exceeding net income, which is a positive indicator of cash generation efficiency. Free cash flow has grown, but the free cash flow to net income ratio suggests potential constraints on cash availability for reinvestment or debt reduction. Overall, cash flows are robust but could benefit from improved free cash flow margins.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.49B	22.04B	20.04B	17.26B	16.44B
Gross Profit	4.08B	3.95B	2.58B	2.29B	1.49B
EBITDA	2.63B	2.55B	2.35B	2.36B	979.00M
Net Income	162.00M	221.00M	230.00M	175.00M	-1.09B
Balance Sheet
Total Assets	21.66B	21.76B	22.03B	18.84B	18.85B
Cash, Cash Equivalents and Short-Term Investments	3.15B	3.14B	3.41B	2.48B	3.05B
Total Debt	7.04B	7.07B	7.28B	5.83B	6.08B
Total Liabilities	17.14B	17.40B	17.30B	14.24B	14.76B
Stockholders Equity	3.72B	3.58B	3.82B	3.69B	3.23B
Cash Flow
Free Cash Flow	463.00M	461.00M	319.00M	249.00M	287.00M
Operating Cash Flow	2.69B	2.46B	1.81B	1.60B	1.76B
Investing Cash Flow	-1.95B	-1.91B	-1.93B	-1.57B	-1.65B
Financing Cash Flow	-524.00M	-788.00M	962.00M	-613.00M	1.14B

Valeo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:FR, the sentiment is Positive. The current price of 9.49 is above the 20-day moving average (MA) of 8.97, above the 50-day MA of 8.78, and above the 200-day MA of 9.02, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 70.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:FR.

Valeo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPM	78 Outperform	€1.54B	9.15	8.49%	5.78%	1.65%	4.27%
FII	72 Outperform	€1.71B	30.59	5.80%	0.90%	10.03%	48.93%
FR	71 Outperform	€2.30B	14.23	4.44%	3.86%	-2.50%	-26.84%
FRVIA	63 Neutral	€1.74B	10.39	-4.21%	5.65%	-1.00%	-181.16%
ML	61 Neutral	$22.36B	11.95	10.41%	3.78%	-4.06%	-4.47%
Sector *	59 Neutral	AU$1.62B	9.53	11.29%	3.73%	6.45%	5.22%