Valeo (FR:FR)
:FR
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Valeo
(FR)
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Rating:52Neutral
Price Target:
€11.00
▼(-5.34% Downside)
Action:ReiteratedDate:03/08/26
The score is held back primarily by leveraged balance-sheet risk and weakening reported top-line trends alongside very thin net margins, despite solid multi-year cash generation. Technically, the stock is in a clear downtrend (below key moving averages with negative MACD), though it appears oversold. Valuation is a modest offset, with a moderate P/E and a ~3.9% dividend yield.
Positive Factors
Cash generation
Consistent operating cash flow and recurring positive free cash flow provide a durable liquidity buffer. Over 2–6 months this supports funding for R&D and capex for electrification/ADAS, cushions cyclicality in auto demand, and underpins the company’s ability to service obligations while investing strategically.
Negative Factors
High leverage
Elevated debt relative to equity constrains financial flexibility in a capital-intensive, cyclical auto-parts industry. High leverage increases refinancing and interest-rate risk, reduces ability to fund strategic investments quickly, and magnifies earnings volatility if revenues soften further.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and recurring positive free cash flow provide a durable liquidity buffer. Over 2–6 months this supports funding for R&D and capex for electrification/ADAS, cushions cyclicality in auto demand, and underpins the company’s ability to service obligations while investing strategically.
Read all positive factors
Valeo (FR) vs. iShares MSCI France ETF (EWQ)
Market Cap
€2.54B
Dividend Yield3.66%
Average Volume (3M)906.71K
Price to Earnings (P/E)7.4
Beta (1Y)1.81
Revenue Growth-2.74%
EPS Growth23.28%
CountryFR
Employees106,100
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.82
Shares Outstanding245,607,620
10 Day Avg. Volume890,196
30 Day Avg. Volume906,708
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)0.87
Price to Sales (P/S)0.14
P/FCF Ratio5.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€13.00Price Target Upside11.88% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)1.45
Revenue Forecast (FY)€20.41B
Valeo Business Overview & Revenue Model
Company Description
Valeo SE designs, produces, and sells components, systems, and services for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Sy...
How the Company Makes Money
Valeo generates revenue primarily through the sale of automotive components and systems to car manufacturers and aftermarket services. Their business model includes long-term contracts with major automotive OEMs (Original Equipment Manufacturers),...
Valeo Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
42
Neutral
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.90B | 21.49B | 22.04B | 20.04B | 17.26B |
| Gross Profit | 4.23B | 4.08B | 3.95B | 2.58B | 2.29B |
| EBITDA | 977.00M | 2.63B | 2.66B | 2.35B | 2.36B |
| Net Income | 200.00M | 162.00M | 221.00M | 230.00M | 175.00M |
Balance Sheet | |||||
| Total Assets | 20.27B | 21.66B | 21.76B | 22.03B | 18.84B |
| Cash, Cash Equivalents and Short-Term Investments | 2.48B | 3.15B | 3.14B | 3.41B | 2.48B |
| Total Debt | 6.56B | 7.04B | 7.07B | 7.28B | 5.83B |
| Total Liabilities | 16.20B | 17.14B | 17.40B | 17.30B | 14.24B |
| Stockholders Equity | 3.32B | 3.72B | 3.58B | 3.82B | 3.69B |
Cash Flow | |||||
| Free Cash Flow | 528.00M | 463.00M | 461.00M | 319.00M | 249.00M |
| Operating Cash Flow | 2.29B | 2.69B | 2.46B | 1.81B | 1.60B |
| Investing Cash Flow | -1.57B | -1.95B | -1.91B | -1.93B | -1.57B |
| Financing Cash Flow | -1.16B | -524.00M | -788.00M | 962.00M | -613.00M |
Valeo Technical Analysis
Positive
11.62
Price Trends
11.46
Positive
11.56
Positive
11.10
Positive
Market Momentum
0.04
Negative
57.93
Neutral
77.78
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 11.62 is above the 20-day moving average (MA) of 10.62, above the 50-day MA of 11.46, and above the 200-day MA of 11.10, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | €78.38M | 2.23 | -8.07% | 3.87% | 0.05% | -136.71% | |
61 Neutral | €711.73M | 4.32 | 6.68% | 1.45% | -2.56% | 5.22% | |
60 Neutral | €192.67M | 20.67 | 2.94% | 7.43% | -5.13% | -33.03% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | €75.57M | 4.98 | 9.39% | 2.13% | -5.53% | ― | |
52 Neutral | €2.54B | 7.44 | 3.67% | 3.66% | -2.74% | 23.28% | |
46 Neutral | €1.92B | -0.78 | -11.30% | 3.79% | -20.86% | -1028.49% |
* General Sector Average
FR:FR
Valeo
10.69
2.41
29.08%
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3.64
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411.00
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40.18%
FR:AKW
AKWEL SA
7.00
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FR:ALDEL
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101.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.