Valeo SA (EU) (VLEEY) AI Stock Analysis

• Market Cap: $2.77B
• Dividend Yield: 4.09%
• Average Volume (3M): 664.00
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.18
• Revenue Growth: -2.45%
• EPS Growth: -26.83%
• Country: US
• Employees: 106,100
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): -0.71
• Shares Outstanding: 489,267,000
• 10 Day Avg. Volume: 1,994
• 30 Day Avg. Volume: 664
• PEG Ratio: -1.26
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.74
• 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: $6.00
• Price Target Upside: 2.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $6.50 ▲(10.92%Upside)

Valeo SA has a strong technical position with significant bullish momentum, supported by a reasonable valuation and attractive dividend yield. The financial performance shows recovery but is constrained by low net profit margins and high leverage, which could be a concern in the long-term.

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 SA generates revenue primarily through the sale of automotive components and systems to OEMs and the aftermarket. The company's key revenue streams include the sale of products related to its four business segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. These sales are driven by the demand for automotive innovation, particularly in areas such as vehicle electrification, autonomous driving technologies, and energy efficiency. Valeo benefits from partnerships and collaborations with leading automotive manufacturers, enabling it to integrate its systems into a wide range of vehicle platforms. Additionally, the company's focus on research and development helps maintain its competitive edge and ability to capture market trends, further contributing to its revenue generation.

Valeo SA (EU) Financial Statement Overview

Summary

Valeo SA demonstrates a steady recovery in revenue and profitability post-2020. Revenue growth and improved gross margins are positive, but the net profit margin remains low at 0.75%. The balance sheet shows high leverage with a Debt-to-Equity ratio of 1.89, which is a concern. However, strong operating cash flow supports operational stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.49B	22.04B	20.04B	17.26B	16.44B
Gross Profit	4.08B	3.95B	2.58B	2.29B	1.49B
EBITDA	2.72B	2.66B	2.35B	2.36B	979.00M
Net Income	162.00M	221.00M	230.00M	175.00M	-1.09B
Balance Sheet
Total Assets	21.66B	21.76B	22.03B	18.84B	18.85B
Cash, Cash Equivalents and Short-Term Investments	3.15B	3.14B	3.41B	2.48B	3.05B
Total Debt	7.04B	7.07B	7.28B	5.83B	6.08B
Total Liabilities	17.14B	17.40B	17.30B	14.24B	14.76B
Stockholders Equity	3.72B	3.58B	3.82B	3.69B	3.23B
Cash Flow
Free Cash Flow	463.00M	461.00M	319.00M	249.00M	287.00M
Operating Cash Flow	2.69B	2.46B	1.81B	1.60B	1.76B
Investing Cash Flow	-1.95B	-1.91B	-1.93B	-1.57B	-1.65B
Financing Cash Flow	-524.00M	-788.00M	962.00M	-613.00M	1.14B

Valeo SA (EU) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.86 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 5.10, and above the 200-day MA of 4.96, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 59.84 is Neutral, neither overbought nor oversold. The STOCH value of 89.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APTV	79 Outperform	$15.56B	11.75	15.52%	―	-2.47%	-43.12%
VLEEY	77 Outperform	$2.77B	15.73	4.49%	4.09%	-2.45%	-26.83%
BWA	76 Outperform	$7.66B	28.01	5.38%	1.25%	-8.23%	-52.61%
ALV	75 Outperform	$8.94B	13.32	28.71%	2.42%	-2.29%	35.00%
LEA	74 Outperform	$5.67B	12.43	10.00%	2.90%	-3.15%	-6.70%
GNTX	66 Neutral	$5.17B	13.48	15.90%	2.09%	-1.66%	-9.20%
Sector *	63 Neutral	$16.62B	10.98	-6.98%	2.96%	1.73%	-24.23%