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Valeo (FR:FR)
:FR
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Valeo (FR) AI Stock Analysis

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FR:FR

Valeo

(FR)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
€14.00
▲(1.52% Upside)
Action:Reiterated
Date:06/04/26
The score is primarily held back by thin net margins, weakening reported recent revenue, and a leveraged balance-sheet profile (2021–2024), despite solid operating/free cash flow. Technicals are supportive with a clear uptrend, but overbought signals reduce confidence in the near-term setup. Valuation is reasonable with a modest dividend yield, but not compelling enough to materially lift the overall score.
Positive Factors
Cash generation resilience
Consistently strong operating cash flow and positive free cash flow across 2020–2025 provide durable internal funding for R&D, capex and working capital, cushioning cyclical auto volumes. This supports reinvestment and debt servicing even when margins or revenue are under pressure.
Negative Factors
Elevated leverage
Multi-year high leverage (debt notably above equity) reduces financial flexibility in a cyclical auto-parts industry, increasing refinancing and interest-rate sensitivity. It limits ability to absorb downturns, constrains opportunistic M&A or capex, and elevates solvency risk if cash flow weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation resilience
Consistently strong operating cash flow and positive free cash flow across 2020–2025 provide durable internal funding for R&D, capex and working capital, cushioning cyclical auto volumes. This supports reinvestment and debt servicing even when margins or revenue are under pressure.
Read all positive factors

Valeo (FR) vs. iShares MSCI France ETF (EWQ)

Valeo Business Overview & Revenue Model

Company Description
Valeo SE is a global automotive supplier, headquartered in Paris, France, that designs, manufactures, and distributes components, integrated systems, and services for car manufacturers worldwide. Its extensive reach spans France, other European na...
How the Company Makes Money
Valeo primarily makes money by selling automotive systems, modules, and components to original equipment manufacturers (OEMs) under multi-year supply contracts tied to specific vehicle platforms and production volumes. Revenue is mainly generated ...

Valeo Financial Statement Overview

Summary
Income statement shows a recovery from 2020 losses and better gross margins, and cash flow remains consistently positive. However, net margins are still very thin, revenue weakened in the latest periods (including a steep 2025 drop in the provided data), and the balance sheet appears meaningfully leveraged based on 2021–2024 history.
Income Statement
58
Neutral
Balance Sheet
42
Neutral
Cash Flow
64
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue20.62B20.90B21.49B22.04B20.04B17.26B
Gross Profit3.69B3.13B3.11B3.13B2.62B2.29B
EBITDA3.00B2.93B2.76B2.51B2.25B2.11B
Net Income201.00M200.00M162.00M221.00M230.00M175.00M
Balance Sheet
Total Assets21.23B20.27B21.66B21.76B22.03B18.84B
Cash, Cash Equivalents and Short-Term Investments3.10B2.57B3.15B3.14B3.41B2.48B
Total Debt6.89B6.56B7.04B7.07B7.28B5.83B
Total Liabilities17.07B16.20B17.14B17.40B17.30B14.24B
Stockholders Equity3.40B3.32B3.72B3.58B3.82B3.69B
Cash Flow
Free Cash Flow1.48B528.00M463.00M461.00M319.00M249.00M
Operating Cash Flow2.22B2.29B2.69B2.46B1.81B1.60B
Investing Cash Flow-1.52B-1.57B-1.95B-1.91B-1.93B-1.57B
Financing Cash Flow-106.00M-1.16B-524.00M-788.00M962.00M-613.00M

Valeo Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.79
Price Trends
50DMA
13.75
Positive
100DMA
12.33
Positive
200DMA
11.90
Positive
Market Momentum
MACD
0.47
Negative
RSI
57.80
Neutral
STOCH
67.85
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 13.79 is above the 20-day moving average (MA) of 13.73, above the 50-day MA of 13.75, and above the 200-day MA of 11.90, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 67.85 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
€652.13M4.987.20%4.50%-3.07%20.80%
64
Neutral
€75.57M6.078.82%5.90%-5.54%
62
Neutral
€78.58M-13.48-3.81%2.98%0.05%-136.71%
57
Neutral
€175.15M9.582.72%13.56%-5.13%-32.96%
56
Neutral
€3.63B18.156.18%3.19%-1.97%61.15%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
47
Neutral
€1.75B77.07-75.26%-31.72%-296.04%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:FR
Valeo
14.63
4.98
51.67%
FR:ALATI
Actia group
4.12
0.91
28.15%
FR:BUR
Burelle
375.00
-10.81
-2.80%
FR:FRVIA
Forvia
9.12
-1.79
-16.44%
FR:AKW
AKWEL SA
6.60
-0.90
-12.05%
FR:ALDEL
Delfingen Industry SA
29.70
1.90
6.83%

Valeo Corporate Events

Valeo to Fully Redeem €750 Million Sustainability-Linked Bonds Ahead of Maturity
Jul 23, 2026
Valeo has decided to exercise the make-whole redemption option on its €750 million 5.375% sustainability-linked bonds due May 2027, fully redeeming the notes on 24 August 2026 under its €5 billion Euro Medium Term Note programme. The m...
Valeo Boosts Profitability and Cash Flow, Confirms 2026 Targets
Jul 22, 2026
Valeo reported first-half 2026 sales of €10.4 billion, up modestly on a like-for-like basis despite currency headwinds and a softer global auto market. Original equipment sales tracked industry volumes, while aftermarket and RD-related &#822...
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.Date of analysis: Jun 04, 2026