Valeo (FR) AI Stock Analysis

• Market Cap: €2.42B
• Dividend Yield: 4.21%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.91
• Revenue Growth: -4.16%
• EPS Growth: -48.55%
• Country: FR
• Employees: 106,100
• Sector: Industrials
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 0.43
• Shares Outstanding: 244,633,500
• 10 Day Avg. Volume: 1,493,518
• 30 Day Avg. Volume: 1,192,595
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €11.85
• Price Target Upside: 18.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 73 Outperform
• Price Target: €11.00 ▲(10.22% Upside)

The overall stock score for Valeo is primarily driven by its strong financial performance and positive technical indicators. The company's solid revenue growth and efficient cost management contribute significantly to its financial health. Technical analysis supports a bullish outlook, although caution is advised due to potential approaching overbought conditions. The valuation is reasonable, further supporting a positive investment case.

Positive Factors

Financial Performance

Valeo's results surpassed expectations due to successful cost management and improved margins across all divisions.

Future Guidance

2025 guidance exceeded expectations, with management focusing on further margin improvements.

Market Position

Valeo is a global leader in driver assistance and electrification technologies, holding a top position in automotive cameras and ADAS components.

Negative Factors

Market Risks

Key risks involve significant exposure to EU/US markets and slower adoption rates of ADAS/AD/EV technologies.

Sales Guidance

Full-year sales guidance was reduced due to foreign exchange and start of production volatility.

Valeo Business Overview & Revenue Model

Company Description

Valeo is a French global automotive supplier headquartered in Paris, France. The company operates in the automotive sector, focusing on the design, production, and sale of components, integrated systems, and modules for automobiles. Valeo is renowned for its innovation in areas such as electrification, autonomous driving, and connected vehicles. It provides products and services across four main business groups: Comfort and Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems.

How the Company Makes Money

Valeo generates revenue primarily through the sale of automotive components and systems to major global car manufacturers. The company's key revenue streams include the production and delivery of innovative automotive solutions in areas such as engine cooling, transmission systems, lighting systems, and sensors for driving assistance. Valeo also earns from its aftermarket business, providing replacement parts and services. Strategic partnerships and joint ventures, such as those focusing on electric vehicle systems and advanced driver-assistance systems (ADAS), also contribute to its earnings by enabling the development of cutting-edge technologies that meet evolving industry needs.

Valeo Financial Statement Overview

Summary

Valeo demonstrates a solid financial standing with positive trends in revenue growth, profitability, and cash generation. The company has effectively managed costs, leading to improved margins. While leverage has increased, it remains controlled. Continued focus on profitability and cash flow enhancement will be crucial for sustaining long-term growth and financial health.

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: 9.98
• 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 FR:FR, the sentiment is Positive. The current price of 9.98 is above the 20-day moving average (MA) of 9.78, above the 50-day MA of 9.42, and above the 200-day MA of 9.04, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 53.88 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	74 Outperform	€1.85B	11.66	7.91%	4.61%	-0.29%	-1.66%
FR	73 Outperform	€2.42B	19.45	3.67%	4.21%	-4.16%	-48.55%
FII	72 Outperform	€2.13B	33.91	6.49%	0.83%	10.03%	48.93%
Sector *	64 Neutral	€14.90B	16.94	1.43%	3.14%	4.91%	-0.30%
ML	63 Neutral	$22.18B	14.24	8.49%	4.39%	-3.62%	-17.91%
FRVIA	60 Neutral	€2.15B	10.39	-11.30%	4.58%	-0.90%	-324.34%