Valeo SA (EU) (VLEEY)
OTHER OTC:VLEEY
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Valeo SA (EU)
(OTC:VLEEY)
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Rating:54Neutral
Price Target:
$7.00
▼(-11.39% Downside)
Action:ReiteratedDate:03/08/26
The score is anchored by improving financial fundamentals (strong operating cash flow and sharply lower leverage), but is pulled down by weak technical momentum (price below key moving averages with negative MACD and oversold indicators). Valuation is moderately supportive with a mid P/E and ~3.9% dividend yield.
Positive Factors
Improved balance sheet
A sharp reduction in leverage to ~0.19 materially lowers financial risk and interest burden, increasing flexibility to fund R&D, capex and program ramp-ups. This de-risking supports resilience through automotive cycles and improves strategic optionality for multi-year OEM investments.
Negative Factors
Thin net profitability
Net margins near 1% leave limited retained earnings to fund growth or absorb shocks, constraining the company's ability to rebuild equity organically. Low bottom-line profitability makes returns and dividend capacity sensitive to cost inflation and modest volume declines.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved balance sheet
A sharp reduction in leverage to ~0.19 materially lowers financial risk and interest burden, increasing flexibility to fund R&D, capex and program ramp-ups. This de-risking supports resilience through automotive cycles and improves strategic optionality for multi-year OEM investments.
Read all positive factors
Valeo SA (EU) (VLEEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.27B
Dividend Yield3.62%
Average Volume (3M)177.00
Price to Earnings (P/E)7.5
Beta (1Y)1.33
Revenue Growth1.47%
EPS Growth28.59%
CountryUS
Employees106,100
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.42
Shares Outstanding491,215,240
10 Day Avg. Volume33
30 Day Avg. Volume177
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)0.86
Price to Sales (P/S)0.14
P/FCF Ratio5.43
Enterprise Value/Market Cap2.06
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit1.60
Enterprise Value/Ebitda4.30
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.84
Revenue Forecast (FY)$23.93B
Valeo SA (EU) Business Overview & Revenue Model
Company Description
Valeo SE designs, produces, and sells components, systems, and services for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Sy...
How the Company Makes Money
Valeo primarily makes money by selling automotive systems and components to original equipment manufacturers (OEMs) under multi-year supply contracts tied to specific vehicle platforms and production volumes. Revenue is largely generated from (1) ...
Valeo SA (EU) Earnings Call Summary
Earnings Call Date:Feb 29, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted successful completion of 2023 guidance, record order intake, and significant ESG progress, demonstrating strong operational performance. However, challenges remain in the Chinese market and Thermal business profitability, alongside high debt levels. The company plans strategic measures to address these issues, aiming for growth and improved margins in the coming years.Positive Updates
Successful Completion of 2023 Guidance
Achieved 100% of 2023 guidance with sales of EUR 22 billion, an EBITDA of 12%, an operating margin of 3.8%, and a free cash flow of EUR 379 million.
Negative Updates
Challenges in China
Underperformance in China due to the need to improve customer mix and reposition the local customer portfolio, with expectations for improvement in the second half of 2024.
Read all updates
Q4-2023 Updates
Positive
Negative
Successful Completion of 2023 Guidance
Achieved 100% of 2023 guidance with sales of EUR 22 billion, an EBITDA of 12%, an operating margin of 3.8%, and a free cash flow of EUR 379 million.
Read all positive updates
Company Guidance
During the earnings call for Q4 2023, Valeo's management provided detailed guidance, projecting 2024 sales between EUR 22.5 billion and EUR 23.5 billion, with EBITDA expected in the range of 12.1% to 13.1%, and an operating margin between 4.0% and 5.0%. For 2025, they anticipate sales of EUR 24.5 billion to EUR 25.5 billion, EBITDA of 13.5% to 14.5%, and an operating margin of 5.5% to 6.5%. The company aims to generate around EUR 500 million in cash for 2024, targeting a free cash flow of approximately EUR 350 million after allocating EUR 150 million to exceptional self-help measures. For 2025, a free cash flow around EUR 650 million is anticipated after similar allocations. Valeo expects to achieve a leverage ratio reduction to 1x EBITDA by 2025. Additionally, the company highlighted their strategy to drive growth through cost reduction, order intake transformation, and a reinforced cash culture, emphasizing a cautious market approach with a 3% volume discount on S&P estimates for greater comfort in achieving these targets.Valeo SA (EU) Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.08B | 21.49B | 22.04B | 20.04B | 17.26B |
| Gross Profit | 4.06B | 4.08B | 3.95B | 2.58B | 2.29B |
| EBITDA | 938.44M | 2.72B | 2.66B | 2.35B | 2.36B |
| Net Income | 192.11M | 162.00M | 221.00M | 230.00M | 175.00M |
Balance Sheet | |||||
| Total Assets | 20.27B | 21.66B | 21.76B | 22.03B | 18.84B |
| Cash, Cash Equivalents and Short-Term Investments | 2.48B | 3.15B | 3.14B | 3.41B | 2.42B |
| Total Debt | 6.44B | 7.04B | 6.99B | 7.45B | 5.88B |
| Total Liabilities | 16.20B | 17.14B | 17.40B | 17.42B | 14.34B |
| Stockholders Equity | 3.32B | 3.72B | 3.58B | 3.82B | 3.69B |
Cash Flow | |||||
| Free Cash Flow | 528.00M | 463.00M | 461.00M | 319.00M | 249.00M |
| Operating Cash Flow | 2.29B | 2.69B | 2.46B | 1.81B | 1.60B |
| Investing Cash Flow | -1.57B | -1.95B | -1.91B | -1.93B | -1.57B |
| Financing Cash Flow | -1.16B | -524.00M | -788.00M | 862.00M | -641.00M |
Valeo SA (EU) Technical Analysis
Positive
7.90
Price Trends
6.66
Positive
6.75
Positive
6.47
Positive
Market Momentum
0.06
Negative
59.24
Neutral
88.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLEEY, the sentiment is Positive. The current price of 7.9 is above the 20-day moving average (MA) of 6.20, above the 50-day MA of 6.66, and above the 200-day MA of 6.47, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 88.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLEEY.
Valeo SA (EU) Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.04B | 19.91 | 11.08% | 0.57% | -2.04% | -43.19% | |
71 Outperform | $6.89B | 8.78 | 8.79% | 2.63% | 2.86% | 17.30% | |
69 Neutral | $9.08B | 13.85 | 27.78% | 2.60% | 6.14% | 7.30% | |
68 Neutral | $5.04B | 9.05 | -42.77% | 1.49% | 7.36% | 34.94% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $3.90B | -4.92 | -2.91% | 1.70% | -21.52% | ― | |
54 Neutral | $3.27B | 7.48 | 6.15% | 3.62% | 1.47% | 28.59% |
* Consumer Cyclical Sector Average
VLEEY
Valeo SA (EU)
6.70
1.95
41.04%
ALV
Autoliv
121.25
30.24
33.23%
DAN
Dana Incorporated
35.60
21.27
148.38%
LEA
Lear
137.57
54.27
65.15%
VC
Visteon
113.72
33.69
42.10%
GTX
Garrett Motion
26.95
15.84
142.68%
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.