Vallourec (0NR2) AI Stock Analysis

• Market Cap: €3.64B
• Dividend Yield: 9.66%
• Average Volume (3M): 456.54K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.05
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 12,497
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Steel
• EPS (TTM): 0.34
• Shares Outstanding: 234,359,150
• 10 Day Avg. Volume: 625,305
• 30 Day Avg. Volume: 456,539
• PEG Ratio: -2.01
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.55
• 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: €20.25
• Price Target Upside: 30.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

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 Financial Statement Overview

Summary

Vallourec's financial performance in 2024 reflects strong profit margins and a healthy balance sheet with moderate leverage. The cash flow conversion is satisfactory, but revenue decline poses challenges for sustaining growth. Continued focus on efficiency and revenue growth is needed.

Income Statement

Vallourec has shown a commendable improvement in its income statement metrics. The gross profit margin stands at 29.5% for 2024, indicating efficient cost management. However, the net profit margin slightly declined from 2023 due to reduced total revenue. The company achieved a notable EBIT margin of 15.5% and an EBITDA margin of 21.2% in 2024, reflecting operational efficiency. The revenue growth trend is inconsistent, with a decline in 2024, but overall margins have improved since 2022.

Balance Sheet

Vallourec's balance sheet shows a solid equity base with a debt-to-equity ratio of 0.47 in 2024, indicating moderate leverage. The return on equity for 2024 is strong at 18%, reflecting profitability against equity. The equity ratio of 45.4% suggests a healthy balance between assets and equity. The company's financial position is stable, but the shrinking asset base could be a concern if the trend continues.

Cash Flow

The cash flow statement highlights strong free cash flow generation in 2024, with a free cash flow of €321 million. The operating cash flow to net income ratio stands at 1.08, showcasing efficient cash generation relative to earnings. The free cash flow to net income ratio is 0.71, indicating good cash flow conversion. Although the free cash flow decreased from 2023, the overall cash position remains robust.

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
	EBIT
626.00M	859.00M	-121.72M	374.33M	-325.54M
	EBITDA
854.00M	1.17B	104.83M	514.66M	-730.97M
	Net Income Common Stockholders
452.00M	495.91M	-366.38M	39.55M	-1.33B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.10B	899.95M	558.42M	627.32M	1.40B
	Total Assets
5.53B	5.71B	5.36B	4.75B	5.05B
	Total Debt
1.17B	1.53B	1.75B	1.44B	3.72B
	Net Debt
67.00M	626.82M	1.20B	821.05M	2.33B
	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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0NR2		€3.64B	7.90	19.37%	9.66%	―	―
Sector *	51 Neutral	$2.02B	-1.14	-21.36%	3.64%	2.88%	-30.57%
0IB0		€4.57B	14.44	4.87%	5.97%	―	―
0MGV		€1.40B	99.41	0.92%	3.07%	―	―
0NPX		€2.45B	49.79	-2.97%	5.01%	―	―
0IN3		€481.64M	75.85	0.93%	0.91%	―	―
CBE	77 Outperform	€1.72B	17.65		1.12%	11.99%	20.45%