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Vallourec SA (FR:VK)
:VK
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Vallourec (VK) AI Stock Analysis

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FR:VK

Vallourec

(VK)

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Neutral 69 (OpenAI - 5.2)
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)

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
Profitability and cash generation are strong in TTM (net margin ~10.4%, EBIT margin ~15.7%, EBITDA margin ~21.1%; operating cash flow ~€863M and free cash flow ~€588M with +36.4% FCF growth), and leverage is meaningfully improved (debt-to-equity ~0.44 vs ~1.07 in 2022). The main constraint is cyclicality and uneven demand/pricing signals, reflected in declining TTM revenue (-2.2%) and prior-period volatility (notably negative cash flow in 2021–2022).
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.46B3.81B4.03B5.11B4.88B3.44B
Gross Profit1.22B933.00M1.19B1.59B1.08B836.58M
EBITDA944.59M766.79M854.00M1.20B104.83M514.66M
Net Income475.41M354.00M452.00M495.91M-366.38M39.55M
Balance Sheet
Total Assets4.95B4.88B5.53B5.71B5.36B4.75B
Cash, Cash Equivalents and Short-Term Investments1.23B965.00M1.10B899.95M558.42M627.32M
Total Debt1.07B923.04M1.17B1.53B1.75B1.44B
Total Liabilities2.36B2.49B2.93B3.49B3.67B2.94B
Stockholders Equity2.49B2.31B2.51B2.16B1.64B1.76B
Cash Flow
Free Cash Flow588.47M384.00M321.00M498.26M-215.66M-283.47M
Operating Cash Flow862.54M560.00M488.00M710.85M-24.99M-145.81M
Investing Cash Flow-151.01M-106.00M71.00M-129.69M-162.09M-29.59M
Financing Cash Flow-444.41M-499.00M-403.00M-214.82M90.92M-603.86M

Vallourec Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.11
Price Trends
50DMA
19.41
Negative
100DMA
20.47
Negative
200DMA
18.03
Positive
Market Momentum
MACD
-0.28
Positive
RSI
38.01
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€2.88B10.039.64%3.32%4.53%6.81%
69
Neutral
€4.71B8.8721.05%6.78%-6.94%-5.19%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
€2.02B-4.71-14.36%3.45%-2.20%-158.54%
45
Neutral
€433.43M22.803.04%0.90%-6.60%80.63%
41
Neutral
€1.33B-2.54-54.14%3.27%0.31%-436.81%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.Date of analysis: Jul 31, 2026