Valeo SA (EU) (VLEEY) AI Stock Analysis

• Market Cap: $3.34B
• Dividend Yield: 3.35%
• Average Volume (3M): 80.00
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.24
• Revenue Growth: -3.62%
• EPS Growth: -48.12%
• Country: US
• Employees: 106,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.25
• Shares Outstanding: 489,267,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 80
• PEG Ratio: -0.52
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 4.79
• Enterprise Value/Market Cap: 2.52
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: 3.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $7.50 ▲(4.60% Upside)

Valeo SA's overall stock score is driven primarily by its financial performance and technical analysis. The company's strong cash flow generation and recovery in revenue are positive signs, but high leverage and a tight net profit margin present risks. The stock's bullish technical indicators are tempered by an overbought RSI, suggesting caution. Valuation concerns due to a high P/E ratio also weigh on the score.

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 Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also provides powertrain systems, including electric powertrain systems for electric cars; torque converters, dual dry and wet clutches, and actuators that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it designs and manufactures systems, modules, and components to optimize thermal management of vehicles and passenger comfort in the cabin, including heating ventilation and air conditioning systems. Further, the company designs and produces lighting and wiper systems for drivers in various weather conditions. Additionally, it offers original equipment spares to auto manufacturers; and replacement parts and accessories to independent aftermarket for passenger cars and commercial vehicles. The company was incorporated in 1923 and is headquartered in Paris, France.

How the Company Makes Money

Valeo generates revenue primarily through the sale of automotive components and systems to original equipment manufacturers (OEMs) and the aftermarket. Its key revenue streams include the supply of powertrain components, thermal management systems, visibility systems (such as wipers and lighting), and advanced driver-assistance systems (ADAS). The company benefits from long-term contracts with major automotive manufacturers, which provide a stable source of income. Additionally, Valeo has established strategic partnerships and collaborations with various automakers and technology firms to develop new technologies and enhance product offerings, thereby expanding its market reach and driving growth. The shift towards electrification and automation in the automotive sector also positions Valeo to capitalize on emerging trends, further contributing to its earnings.

Valeo SA (EU) Financial Statement Overview

Summary

Valeo SA shows a steady recovery in revenue and profitability post-2020. While profitability metrics indicate progress, the net profit margin remains tight. The balance sheet reflects high leverage, which could pose risks if not managed properly. Cash flow generation is strong, supporting operational stability. Despite some areas for improvement, the company's financial position is showing positive trends.

Income Statement

Valeo SA's revenue shows a recovery trend following the dip in 2020, with a 7.7% growth from 2020 to 2021 and continued growth thereafter. Gross Profit Margin improved from 13.1% in 2020 to 19% in 2024. EBIT and EBITDA margins are stable, indicating efficient cost management. Net Profit Margin, however, remains low at 0.75% in 2024, signaling room for improvement in profitability.

Balance Sheet

The Debt-to-Equity ratio is high at 1.89 in 2024, indicating a significant reliance on debt financing. Return on Equity improved from negative in 2020 to 4.35% in 2024, showing better utilization of equity. The Equity Ratio stands at 17.17%, suggesting a moderate level of equity financing compared to total assets.

Cash Flow

Operating Cash Flow has been consistently strong, reaching €2.69 billion in 2024. Free Cash Flow improved slightly from 2023 to 2024. The Operating Cash Flow to Net Income ratio is robust, highlighting strong cash generation relative to net income. However, Free Cash Flow growth remains modest.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.04B	21.49B	22.04B	20.04B	17.26B	16.44B
Gross Profit	4.12B	4.08B	3.95B	2.58B	2.29B	1.49B
EBITDA	2.73B	2.72B	2.66B	2.35B	2.36B	961.00M
Net Income	125.00M	162.00M	221.00M	230.00M	175.00M	-1.09B
Balance Sheet
Total Assets	20.37B	21.66B	21.76B	22.03B	18.84B	18.85B
Cash, Cash Equivalents and Short-Term Investments	2.42B	3.15B	3.14B	3.41B	2.42B	2.95B
Total Debt	599.00M	7.04B	6.99B	7.45B	5.88B	6.27B
Total Liabilities	16.42B	17.14B	17.40B	17.42B	14.34B	14.85B
Stockholders Equity	3.18B	3.72B	3.58B	3.82B	3.69B	3.24B
Cash Flow
Free Cash Flow	443.00M	463.00M	461.00M	319.00M	249.00M	287.00M
Operating Cash Flow	2.50B	2.69B	2.46B	1.81B	1.60B	1.76B
Investing Cash Flow	-1.82B	-1.95B	-1.91B	-1.93B	-1.57B	-1.65B
Financing Cash Flow	-1.08B	-524.00M	-788.00M	862.00M	-641.00M	1.06B

Valeo SA (EU) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.17 is above the 20-day moving average (MA) of 6.64, above the 50-day MA of 6.37, and above the 200-day MA of 5.55, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 66.32 is Neutral, neither overbought nor oversold. The STOCH value of 57.83 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	75 Outperform	$5.61B	13.23	8.96%	2.81%	-1.90%	-13.86%
ALV	74 Outperform	$9.25B	12.58	31.09%	2.40%	0.84%	26.17%
VC	71 Outperform	$2.93B	9.63	23.16%	0.25%	-4.03%	-39.51%
GTX	71 Outperform	$3.41B	11.13	―	1.21%	-1.09%	56.16%
VLEEY	66 Neutral	$3.34B	24.60	3.57%	3.35%	-3.62%	-48.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	54 Neutral	$2.50B	48.42	-4.82%	1.84%	-18.23%	―

Valeo SA (EU) Corporate Events

Valeo Reports Improved Profitability Amid Sales Decline

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.