Vallourec (VK) AI Stock Analysis

• Market Cap: €3.80B
• Dividend Yield: 9.21%
• Average Volume (3M): 599.26K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.85
• Revenue Growth: -21.12%
• EPS Growth: -10.62%
• Country: FR
• Employees: 12,497
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Steel
• EPS (TTM): 0.34
• Shares Outstanding: 234,359,150
• 10 Day Avg. Volume: 468,098
• 30 Day Avg. Volume: 599,264
• PEG Ratio: -1.96
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.00
• 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: €19.50
• Price Target Upside: 19.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 82 Outperform
• Price Target: €19.00 ▲(16.35%Upside)

Vallourec receives a strong overall score driven by its solid financial performance and attractive valuation. The technical analysis suggests a bullish trend, though slightly overbought conditions could lead to short-term volatility. The absence of earnings call insights or notable corporate events means the score relies heavily on financials and technicals.

Vallourec Business Overview & Revenue Model

Company Description

Vallourec (VK) is a global leader in premium tubular solutions primarily serving the energy markets, including oil and gas, power generation, and industry applications. The company specializes in the design and production of seamless steel tubes, which are crucial for drilling operations, as well as providing solutions for mechanical engineering and construction industries. Vallourec's expertise in steel manufacturing and its commitment to innovation position it as a key player in delivering high-performance products that meet the technical challenges of its diverse clientele.

How the Company Makes Money

Vallourec makes money through the production and sale of seamless steel tubes and premium tubular solutions. Its primary revenue streams stem from the oil and gas sector, where the demand for high-quality tubes for drilling and extraction processes is significant. The company also generates revenue from the power generation and industrial markets by supplying tubes for various applications, such as boilers and heat exchangers. Vallourec's growth is supported by its strategic partnerships and alliances with major oil and gas companies, which ensure a steady demand for its products. Additionally, the company's focus on innovation and advanced manufacturing techniques allows it to offer specialized solutions that command premium pricing, further contributing to its earnings.

Vallourec Financial Statement Overview

Summary

Vallourec demonstrates solid financial performance with strong revenue growth, robust profit margins, stable financial health, and excellent cash generation capabilities. This positions the company well for future growth and stability.

Income Statement

Vallourec has shown strong revenue growth in recent periods, with a notable increase from 2024 to the TTM period. The gross profit margin is robust at 27.4% for TTM, indicating efficient production. Net profit margin improved significantly to 8.6% in the TTM period, highlighting profitability improvements. EBIT and EBITDA margins are also healthy, reflecting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio stands at 0.40 for the TTM, indicating a reasonable level of leverage. The equity ratio improved to 48.5%, suggesting stable financial health. However, the return on equity of 16.8% shows room for improvement in generating returns on shareholder investments.

Cash Flow

Vallourec's free cash flow has grown impressively, reflecting strong cash generation capabilities. The operating cash flow to net income ratio of 1.51 for TTM indicates effective cash conversion from earnings. Free cash flow to net income ratio of 1.00 further underscores efficient cash management, supporting future investments and debt servicing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.03B	5.11B	4.88B	3.44B	3.24B
Gross Profit	1.19B	1.59B	1.08B	836.58M	608.13M
EBITDA	854.00M	1.17B	104.83M	514.66M	-730.97M
Net Income	452.00M	495.91M	-366.38M	39.55M	-1.33B
Balance Sheet
Total Assets	5.53B	5.71B	5.36B	4.75B	5.05B
Cash, Cash Equivalents and Short-Term Investments	1.10B	899.95M	558.42M	627.32M	1.40B
Total Debt	1.17B	1.53B	1.75B	1.44B	3.72B
Total Liabilities	2.93B	3.49B	3.67B	2.94B	4.91B
Stockholders Equity	2.51B	2.16B	1.64B	1.76B	-187.10M
Cash Flow
Free Cash Flow	321.00M	498.26M	-215.66M	-283.47M	-110.96M
Operating Cash Flow	488.00M	710.85M	-24.99M	-145.81M	27.28M
Investing Cash Flow	71.00M	-129.69M	-162.09M	-29.59M	-128.16M
Financing Cash Flow	-403.00M	-214.82M	90.92M	-603.86M	-216.62M

Vallourec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.33
• 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:VK, the sentiment is Positive. The current price of 16.33 is above the 20-day moving average (MA) of 16.09, above the 50-day MA of 15.69, and above the 200-day MA of 15.35, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 20.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:VK.

Vallourec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VK	82 Outperform	€3.80B	8.29	19.37%	9.21%	-21.12%	-10.62%
CBE	73 Outperform	€1.57B	16.14		1.44%	11.99%	20.45%
AKE	66 Neutral	€4.69B	14.99	4.87%	5.75%	2.71%	-10.61%
JCQ	62 Neutral	€488.24M	78.44	0.93%	0.88%	-11.69%	-87.46%
NK	47 Neutral	€2.21B	50.11	-2.97%	5.55%	-4.99%	-286.16%
ERA	45 Neutral	€1.51B	108.16	0.92%	2.90%	-9.78%	-87.29%
Sector *	44 Neutral	AU$1.45B	-6.10	-40.74%	3.85%	-3.45%	-41.76%