Vallourec SA (FR:VK)
:VK
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Vallourec
(VK)
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Rating:73Outperform
Price Target:
€24.50
▲(12.64% Upside)
Action:UpgradedDate:03/01/26
The score is driven by improved financial strength (profitability, deleveraging, and solid free cash flow) and supportive technicals with price above key moving averages. Offsetting factors are the recent revenue/margin step-down and momentum indicators nearing overbought levels, while valuation remains reasonable with a notably high dividend yield.
Positive Factors
Deleveraging and stronger balance sheet
Debt reduction to a ~0.42 D/E and positive equity since 2023 materially improves financial flexibility. This lower leverage reduces interest burden and bankruptcy risk, enabling the company to withstand cyclical downturns, fund targeted capex or investments, and negotiate with customers/suppliers over the next several quarters.
Negative Factors
Declining revenues
Consecutive revenue declines through 2024–2025 and negative recent revenue growth signal weakening end-market demand or pricing pressure. Persistent top-line contraction erodes operating leverage and can outpace cost reductions, threatening margins and cash generation if the trend continues over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging and stronger balance sheet
Debt reduction to a ~0.42 D/E and positive equity since 2023 materially improves financial flexibility. This lower leverage reduces interest burden and bankruptcy risk, enabling the company to withstand cyclical downturns, fund targeted capex or investments, and negotiate with customers/suppliers over the next several quarters.
Read all positive factors
Vallourec (VK) vs. iShares MSCI France ETF (EWQ)
Market Cap
€5.10B
Dividend Yield9.68%
Average Volume (3M)560.69K
Price to Earnings (P/E)10.4
Beta (1Y)0.76
Revenue Growth-15.12%
EPS Growth-10.10%
CountryFR
Employees12,497
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)0.41
Shares Outstanding234,359,150
10 Day Avg. Volume699,143
30 Day Avg. Volume560,692
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)1.59
Price to Sales (P/S)0.96
P/FCF Ratio9.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€22.17Price Target Upside1.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.69
Revenue Forecast (FY)€3.99B
Vallourec Business Overview & Revenue Model
Company Description
Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and energy markets in Europe, North America, South America, Asia, and internationally. It operates through Seamless Tubes and Specialty Products se...
How the Company Makes Money
Vallourec makes money mainly by selling seamless steel tubes and related tubular solutions to customers in energy and industrial markets. Its core revenue stream comes from supplying oil and gas customers with OCTG (oil country tubular goods) and ...
Vallourec Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.81B | 4.03B | 5.11B | 4.88B | 3.44B |
| Gross Profit | 933.00M | 1.19B | 1.59B | 1.08B | 836.58M |
| EBITDA | 798.00M | 854.00M | 1.20B | 104.83M | 514.66M |
| Net Income | 354.00M | 452.00M | 495.91M | -366.38M | 39.55M |
Balance Sheet | |||||
| Total Assets | 4.88B | 5.53B | 5.71B | 5.36B | 4.75B |
| Cash, Cash Equivalents and Short-Term Investments | 965.00M | 1.10B | 899.95M | 558.42M | 627.32M |
| Total Debt | 964.00M | 1.17B | 1.53B | 1.75B | 1.44B |
| Total Liabilities | 2.49B | 2.93B | 3.49B | 3.67B | 2.94B |
| Stockholders Equity | 2.31B | 2.51B | 2.16B | 1.64B | 1.76B |
Cash Flow | |||||
| Free Cash Flow | 384.00M | 321.00M | 498.26M | -215.66M | -283.47M |
| Operating Cash Flow | 560.00M | 488.00M | 710.85M | -24.99M | -145.81M |
| Investing Cash Flow | -106.00M | 71.00M | -129.69M | -162.09M | -29.59M |
| Financing Cash Flow | -499.00M | -403.00M | -214.82M | 90.92M | -603.86M |
Vallourec Technical Analysis
Positive
21.75
Price Trends
19.14
Positive
17.59
Positive
16.78
Positive
Market Momentum
0.65
Negative
72.27
Negative
88.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VK, the sentiment is Positive. The current price of 21.75 is above the 20-day moving average (MA) of 19.93, above the 50-day MA of 19.14, and above the 200-day MA of 16.78, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 72.27 is Negative, neither overbought nor oversold. The STOCH value of 88.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:VK.
Vallourec Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €5.10B | 10.37 | 21.20% | 9.68% | -15.12% | -10.10% | |
64 Neutral | €2.75B | 12.32 | 9.78% | 2.66% | -3.29% | 0.92% | |
63 Neutral | €440.92M | 41.46 | 1.38% | 0.99% | -7.44% | 85.42% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | €1.81B | -4.95 | -11.01% | 6.28% | -7.71% | -451.19% | |
41 Neutral | €1.44B | -3.46 | -7.36% | 2.83% | -6.91% | -222.35% |
* General Sector Average
FR:VK
Vallourec
21.57
5.73
36.22%
FR:ERA
Eramet SA
52.10
5.98
12.96%
FR:EXPL
Societe Explosifs et Produits Chimiques SA
263.00
68.41
35.15%
FR:NK
IMERYS SA
20.96
-7.21
-25.60%
FR:JCQ
JACQUET METAL SERVICE
21.10
1.72
8.86%
FR:VCT
Vicat SA
64.70
15.24
30.82%
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.