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Vallourec
(VK)
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Rating:69Neutral
Price Target:
€23.00
▲(4.03% Upside)
Action:Downgraded
Date:07/31/26
The score is primarily supported by strong recent financial performance (healthy margins, robust free cash flow, and improved leverage) and a supportive valuation (P/E ~10.3 with ~7.1% dividend yield). Offsetting these positives, the technical picture is weaker with the stock trading below key short-to-intermediate moving averages, and fundamentals show some cyclicality risk via declining TTM revenue and historically volatile cash flows.
Positive Factors
Strong free cash flow generation
Sustained operating cash flow and substantial FCF growth strengthen the company’s ability to fund capex, service dividends, and reduce debt without relying on external financing. Durable cash conversion supports strategic investments and cushions the balance sheet across cycles.
Negative Factors
Revenue cyclicality and recent declines
Top-line weakness and a pattern of declining revenue reflect sensitivity to upstream activity and project timing. Persistent or recurring demand soft spots can compress utilization and limit the durability of profits, requiring sustained recovery to restore growth trajectories.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained operating cash flow and substantial FCF growth strengthen the company’s ability to fund capex, service dividends, and reduce debt without relying on external financing. Durable cash conversion supports strategic investments and cushions the balance sheet across cycles.
Read all positive factors
Vallourec (VK) vs. iShares MSCI France ETF (EWQ)
Market Cap
€4.71B
Dividend Yield8.27%
Average Volume (3M)560.69K
Price to Earnings (P/E)8.9
Beta (1Y)0.49
Revenue Growth-6.94%
EPS Growth-5.19%
CountryFR
Employees12,046
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)2.04
Shares Outstanding265,886,440
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
€25.87Price Target Upside16.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.22
Revenue Forecast (FY)€3.77B
Vallourec Business Overview & Revenue Model
Company Description
Vallourec S.A., established in 1899 and based in Boulogne-Billancourt, France, operates as a global provider of advanced tubular solutions. The company serves the oil and gas, industrial, and energy markets across Europe, North America, South Amer...
How the Company Makes Money
Vallourec makes money mainly by selling seamless steel tubes and related tubular solutions, with its largest revenue stream historically tied to energy markets. A core contributor is OCTG products sold to oil and gas operators and service companie...
Vallourec Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.46B | 3.81B | 4.03B | 5.11B | 4.88B | 3.44B |
| Gross Profit | 1.22B | 933.00M | 1.19B | 1.59B | 1.08B | 836.58M |
| EBITDA | 944.59M | 766.79M | 854.00M | 1.20B | 104.83M | 514.66M |
| Net Income | 475.41M | 354.00M | 452.00M | 495.91M | -366.38M | 39.55M |
Balance Sheet | ||||||
| Total Assets | 4.95B | 4.88B | 5.53B | 5.71B | 5.36B | 4.75B |
| Cash, Cash Equivalents and Short-Term Investments | 1.23B | 965.00M | 1.10B | 899.95M | 558.42M | 627.32M |
| Total Debt | 1.07B | 923.04M | 1.17B | 1.53B | 1.75B | 1.44B |
| Total Liabilities | 2.36B | 2.49B | 2.93B | 3.49B | 3.67B | 2.94B |
| Stockholders Equity | 2.49B | 2.31B | 2.51B | 2.16B | 1.64B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | 588.47M | 384.00M | 321.00M | 498.26M | -215.66M | -283.47M |
| Operating Cash Flow | 862.54M | 560.00M | 488.00M | 710.85M | -24.99M | -145.81M |
| Investing Cash Flow | -151.01M | -106.00M | 71.00M | -129.69M | -162.09M | -29.59M |
| Financing Cash Flow | -444.41M | -499.00M | -403.00M | -214.82M | 90.92M | -603.86M |
Vallourec Technical Analysis
Negative
22.11
Price Trends
19.41
Negative
20.47
Negative
18.03
Positive
Market Momentum
-0.28
Positive
38.01
Neutral
3.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VK, the sentiment is Negative. The current price of 22.11 is above the 20-day moving average (MA) of 18.95, above the 50-day MA of 19.41, and above the 200-day MA of 18.03, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 38.01 is Neutral, neither overbought nor oversold. The STOCH value of 3.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | €2.88B | 10.03 | 9.64% | 3.32% | 4.53% | 6.81% | |
69 Neutral | €4.71B | 8.87 | 21.05% | 6.78% | -6.94% | -5.19% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | €2.02B | -4.71 | -14.36% | 3.45% | -2.20% | -158.54% | |
45 Neutral | €433.43M | 22.80 | 3.04% | 0.90% | -6.60% | 80.63% | |
41 Neutral | €1.33B | -2.54 | -54.14% | 3.27% | 0.31% | -436.81% |
* General Sector Average
FR:VK
Vallourec
18.09
3.96
27.98%
FR:ERA
Eramet SA
46.08
-5.82
-11.21%
FR:EXPL
Societe Explosifs et Produits Chimiques SA
270.00
78.12
40.71%
FR:NK
IMERYS SA
23.98
2.67
12.52%
FR:JCQ
JACQUET METAL SERVICE
20.75
0.15
0.72%
FR:VCT
Vicat SA
65.30
7.82
13.60%
Vallourec Corporate Events
Vallourec Publishes 2026 Interim Financial Report for Investors
Jul 30, 2026
Vallourec has published its interim financial report for the six months ended 30 June 2026, making it available to the public and filing it with the French securities regulator. The document contains the consolidated first-half financial statement...
Vallourec Delivers Strong Q2 Profitability and Cash, Leans on Offshore and Geothermal Growth
Jul 30, 2026
Vallourec reported second-quarter 2026 EBITDA of $190 million, slightly below last year but with a higher margin of 21.4%, and maintained strong Tubes profitability at $722 per tonne despite lower volumes and softer Mine Forest performance. Net i...
Vallourec wins Brazilian deepwater line pipe contract for Atapu 2
Jul 22, 2026
Vallourec has secured a major contract from Allseas to supply seamless carbon steel line pipes with thermal insulation coating for the Atapu 2 offshore project in Brazil, operated by a Petrobras-led consortium. The order covers 143 kilometers of r...
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.