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Valeo SA (EU) (VLEEY)
OTHER OTC:VLEEY
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Valeo SA (EU)
(OTC:VLEEY)
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Rating:60Neutral
Price Target:
$6.50
▲(7.62% Upside)
Valeo SA's overall stock score reflects a balance of financial recovery and valuation appeal against technical weakness. The company's strong cash flow and attractive dividend yield are positive factors, but high leverage and weak market momentum present challenges.
Valeo SA (EU) (VLEEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.30B
Dividend Yield3.62%
Average Volume (3M)177.00
Price to Earnings (P/E)23.7
Beta (1Y)1.19
Revenue Growth-3.62%
EPS Growth-48.12%
CountryUS
Employees106,100
SectorN/A
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.25
Shares Outstanding491,215,240
10 Day Avg. Volume33
30 Day Avg. Volume177
Financial Highlights & Ratios
PEG Ratio-0.52
Price to Book (P/B)0.60
Price to Sales (P/S)0.10
P/FCF Ratio4.79
Enterprise Value/Market Cap0.15
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.12
Enterprise Value/Ebitda0.19
Forecast
1Y Price Target
$14.68Price Target Upside143.05% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.73
Revenue Forecast (FY)$23.80B
Valeo SA (EU) Business Overview & Revenue Model
Company DescriptionValeo SA is a global automotive supplier headquartered in France, specializing in the design, production, and sale of a wide range of automotive components and systems. The company operates in several sectors, including Powertrain Systems, Thermal Systems, Comfort and Driving Assistance Systems, and Visibility Systems. Valeo’s core products include advanced driver assistance systems (ADAS), electric vehicle components, thermal management solutions, and lighting systems for vehicles. With a strong focus on innovation and sustainability, Valeo is actively engaged in developing technologies that enhance vehicle efficiency and safety.
How the Company Makes MoneyValeo generates revenue primarily through the sale of automotive components and systems to original equipment manufacturers (OEMs) and the aftermarket. The company's revenue model is based on long-term contracts with major automotive manufacturers, which provide a steady income stream. Key revenue streams include sales of powertrain systems, which focus on improving fuel efficiency and reducing emissions, and thermal systems that ensure optimal vehicle temperatures. Valeo also benefits from partnerships with carmakers and collaborations with technology firms to develop cutting-edge automotive technologies. As the automotive industry shifts towards electric vehicles and increased automation, Valeo's investments in research and development in these areas are expected to enhance its revenue potential. Additionally, the company earns from the aftermarket by supplying replacement parts and components, further diversifying its income sources.
Valeo SA (EU) Earnings Call Summary
Earnings Call Date:Feb 29, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Feb 19, 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.Q4-2023 Updates
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.
Record Order Intake
Set a record for order intake in 2023 at almost EUR 35 billion, with more than half related to driving assistance system technologies, interior experience software-defined vehicle, and EUR 6 billion in High Voltage electrification.
ESG Progress
Achieved a 9% decrease in CO2 emissions in absolute terms and 20% in relative terms since 2019. Continued efforts in gender diversity and safety improvements.
Improved Financial Metrics
Valeo's net attributable income reached EUR 221 million, an increase of almost 50% compared to 2022 on an adjusted basis.
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.
Thermal Business Underperformance
Current low profitability in the Thermal division, which is expected to improve gradually with the merger of Powertrain and Thermal business groups.
High Debt Levels
Financial net debt stood at EUR 4 billion, stable compared with December 2022, with a leverage ratio at 1.5x.
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
78
Positive
Balance Sheet
65
Positive
Cash Flow
74
Positive
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Valeo SA (EU) Technical Analysis
Positive
6.04
Price Trends
6.62
Positive
6.36
Positive
5.73
Positive
Market Momentum
0.03
Negative
49.66
Neutral
61.10
Neutral
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 6.04 is below the 20-day moving average (MA) of 6.58, below the 50-day MA of 6.62, and above the 200-day MA of 5.73, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 61.10 is Neutral, 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 (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
78 Outperform | $9.15B | 12.41 | 31.09% | 2.60% | 0.84% | 26.17% | |
75 Outperform | $6.12B | 14.33 | 8.96% | 2.63% | -1.90% | -13.86% | |
73 Outperform | $2.68B | 8.70 | 23.16% | 0.57% | -4.03% | -39.51% | |
71 Outperform | $3.44B | 11.07 | ― | 1.49% | -1.09% | 56.16% | |
60 Neutral | $3.30B | 23.70 | 3.57% | 3.62% | -3.62% | -48.12% | |
58 Neutral | $2.77B | 53.17 | -4.82% | 1.70% | -18.23% | ― |
* Sector Average
VLEEY
Valeo SA (EU)
6.63
2.19
49.32%
ALV
Autoliv
120.14
28.82
31.56%
DAN
Dana Incorporated
23.49
11.96
103.73%
LEA
Lear
117.06
24.98
27.13%
VC
Visteon
96.91
9.27
10.58%
GTX
Garrett Motion
17.42
8.56
96.61%
Valeo SA (EU) Corporate Events
Valeo Reports Improved Profitability Amid Sales Decline
Jul 25, 2025
Valeo, SA, a prominent player in the automotive technology sector, specializes in providing innovative solutions for cleaner, safer, and smarter mobility, with a strong focus on electrification, driving assistance systems, and lighting technology.
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.