Vallourec (VK) AI Stock Analysis

• Market Cap: €3.77B
• Dividend Yield: 9.33%
• Average Volume (3M): 533.87K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.86
• Revenue Growth: -15.12%
• EPS Growth: -10.10%
• Country: FR
• Employees: 12,497
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.27
• Shares Outstanding: 234,359,150
• 10 Day Avg. Volume: 538,338
• 30 Day Avg. Volume: 533,873
• PEG Ratio: -0.86
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 11.77
• 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: €20.10
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: €17.50 ▲(8.83% Upside)

Vallourec's overall stock score is driven by a solid valuation with an attractive dividend yield and reasonable P/E ratio. However, the mixed financial performance, characterized by declining revenue and negative cash flow growth, along with neutral technical indicators, tempers the overall outlook. The absence of significant earnings call insights or corporate events further emphasizes the need for caution.

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 segments. The company offers seamless tubes for refineries, petrochemical facilities, and floating liquefied natural gas plants, as well as production, storage, and offloading units; casings; tubings; VAM connections; rigid subsea line pipes, onshore rigid line pipes, and specialized tubes for transportation of oil and gas; and carbon steel and steel alloy tubes, hollow bars, and connections for the processing of industrial fluids, and oil and gas. Its oil and gas market services include assistance in lowering tubes, inspecting connections, and supervising assembly; repair services for its products and thread tubes inventory management, advisory, and training services; tube inspection, maintenance, and repair services; on-site services; preparation for drilling operations; well coordination and supply services based on the drilling programs; integrated solutions for the subsea line pipe market comprising welding, coating, insulation, logistics, and service agreements; tube coating and welding services. The company's power generation market products and services comprise seamless tubes for steam generators. Its industrial market products and services include tubes and hollow bars, as well as circular, square, rectangular, and octagonal sections; tubular solutions for infrastructure construction; tubes and rings to manufacture cranes, construction machinery, agricultural machinery, and hydraulic cylinders; and tubes and axles for automotive manufacturers. The company is also involved in the iron ore production business; and various projects concerning renewable energies. Vallourec S.A. was founded in 1899 and is headquartered in Boulogne-Billancourt, France.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.81B	4.03B	5.11B	4.88B	3.44B	3.24B
Gross Profit	1.14B	1.19B	1.59B	1.08B	836.58M	608.13M
EBITDA	962.00M	854.00M	1.17B	104.83M	514.66M	-730.97M
Net Income	362.00M	452.00M	495.91M	-366.38M	39.55M	-1.33B
Balance Sheet
Total Assets	4.83B	5.53B	5.71B	5.36B	4.75B	5.05B
Cash, Cash Equivalents and Short-Term Investments	803.00M	1.10B	899.95M	558.42M	627.32M	1.40B
Total Debt	997.00M	1.17B	1.53B	1.75B	1.44B	3.72B
Total Liabilities	2.67B	2.93B	3.49B	3.67B	2.94B	4.91B
Stockholders Equity	2.08B	2.51B	2.16B	1.64B	1.76B	-187.10M
Cash Flow
Free Cash Flow	378.00M	321.00M	498.26M	-215.66M	-283.47M	-110.96M
Operating Cash Flow	542.00M	488.00M	710.85M	-24.99M	-145.81M	27.28M
Investing Cash Flow	9.40M	71.00M	-129.69M	-162.09M	-29.59M	-128.16M
Financing Cash Flow	-503.59M	-403.00M	-214.82M	90.92M	-603.86M	-216.62M

Vallourec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.08
• 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 16.08 is below the 20-day moving average (MA) of 16.49, above the 50-day MA of 15.97, and above the 200-day MA of 15.61, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 26.98 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	66 Neutral	€3.77B	10.53	16.47%	9.33%	-15.12%	-10.10%
Sector *	44 Neutral	C$865.14M	-6.69	-14.90%	2.77%	16.73%	-26.87%
0IB0	―	€4.44B	20.53	3.56%	―	―	―
0MGV	―	€1.37B	109.28	-7.36%	―	―	―
0NPX	―	€1.79B	49.79	-5.29%	―	―	―
0IN3	―	€466.73M	75.67	0.93%	―	―	―
CBE	73 Outperform	€1.63B	16.26		1.43%	11.99%	20.45%